All Forum Posts by: Scott L.

Thinking of pulling the trigger today. My mentor says he thinks it's a good deal.

Thanks guys.  Appreciate the info.  I'm nervous to say the least.

The area is Ellwood City, not a booming metropolis, but a nice few streets and close to my home to keep and eye on it. Affordable jump into the market 65k ish is the price i'm looking and I believe it will still cash flow...

Separate utilities across the board.  The tenants pay all utilities, and maintain the yard themselves. Gas and Electric are separate, the water is separate as well.

I just got them to drop the price by $3000 and fix a bunch of the inspection issues, as well as provide a home warranty on the property.

Monthly Income: $1,120.00	Monthly Expenses: $780.65	Monthly Cashflow: $339.35	Pro Forma Cap Rate: 11.14%
NOI: $7,392.40	Total Cash Needed: $24,441.00	Cash on Cash ROI: 16.66%	Purchase Cap Rate: 13.22%

Love more advice...

Still seems like a decent starter property. Needs some work, but have current tenants in with month to month lease on the one, and 12+yrs on the other. They pay ALL utilities and are responsible for all yard work.

Those are my numbers that doesn't account for the seller already paying 6% of closing costs.  So they are a little better.  Also doesn't account for whatever concessions I ask the seller to make for closing...

Its a wife that just got the property in divorce and not sure what she will wanna do herself, but again, I'd rather have her do the needed repairs now rather than save incremental money on the mortgage my renters are gonna pay off for me anyway, and keep more cash on hand.

thought?

Monthly Income: $1,120.00	Monthly Expenses: $633.91	Monthly Cashflow: $486.09	Pro Forma Cap Rate: 13.79%
NOI: $9,420.00	Total Cash Needed: $24,125.00	Cash on Cash ROI: 24.18%	Purchase Cap Rate: 15.99%

Total Monthly Cashflow using 50% Rule:

$261.09

Jordan,

Thank you so much.  I was thinking along the same lines.  I was thinking of asking the seller to fix some of the issues before they move out, specifically the main drain in the basement, maybe some of the windows, including a home warranty and maybe some money back too...  Not sure what they will agree to.

Thanks Issac, I am still hoping its a good shot. I'm running through the numbers right now. There are some little things that need done and some stuff just from it being an old building. Still nervous.

Anybody with any thoughts?