All Forum Posts by: Rhonda Jones

Hi Tricia,

Are you interested in selling these as a bundle or is the new property being sold separately?

Also, how soon do you want to sell (considering the eviction you are doing this month)?

Hi Kathy - you can calculate this information for free. Use the formula to determine Cap Rate:  Net Operating Income divided by the Purchase Price.

First, find out the NOI, which equals total income minus total expenses (not including debt service).

If you have the purchase price (what is should sell for) and you know what the rental income is you can determine the cap rate.

Example: purchase price is $100,000 and the monthly income is $1,200 or $14,400 per year. If you follow the 50% rule and estimate expenses at $7,200/year, NOI would equal $7,200. Then divide $7,200 by the purchase price of $100,000 and the cap rate would be 7.2%. 

These numbers are for illustration purposes only. You will need to perform due diligence to get a true NOI. Rule of thumb - the higher the Cap Rate, the higher the expected income per dollar spent. In other words, if this property sells below $100,000, the cap rate would be higher.

Let me now if this helps!

All the best,

Rhonda

I did a little market research. It is quite small and looks like a strong rental community. Average rents are lower than what I am used to in Philly; however the properties I am looking at are being sold at less than 30K each. I wasn't able to see property tax info, although I searched a few websites.

Is it a significant market for Section 8 housing? 

Yes it is amazing how things work out @Heather W. During that low period when money was tied up in the repair of the duplex, I reflected on where I wanted to be. Getting three more properties this year was my goal!   The tenants were back in their apartments in two weeks after the basement flooded. I was so thankful for that.

I tapped into equity from one of my existing properties and used that equity as down payment on the new house. Got it at a great price through an estate sale. So glad that I received some guidance there.  Adversity forced me to be more creative!  Wish I had thought of that during the water main break fiasco ;)

Hi @Liam Goble are you still in the State College area? I invest in the Philly market, but have been presented with a possible deal in Lewistown PA. I don't know enough about that area. Are you familiar with the market?

@Jason C. 

 The rents in Philly do vary greatly depending on the area. I am assuming these are 3/1 houses. If you don't mind me asking, what area of the city are they in?

Wow - I have not posted in a very long time - five months. Here is my update. The City of Philadelphia did finally make the payout in June!  The good news was I did get a personal loan to cover the costs back in February.

The total cost of everything was a little over $10,000. The City covered all of the expenses except the $3,000. The property was restored and I still have the tenants.

I am still shopping for another insurance company since the one I have did absolutely nothing to help me.

Since then, I have purchased another property - finishing up the rehab now. I am also working on 6 new property acquisitions now.  Still in the game! :)