All Forum Posts by: Ryan K.

Only 8% for BOTH maintenance and vacancy? And no line item for CapEx?

Where did these numbers come from? Let me guess, the Turnkey provider? They do that to make the COC return numbers seem great. But long term those extra expenses will eat away at the expected returns. Ask the folks that have held SFRs long term to get some better figures.

Got to agree here. I bought a REO (not homepath) and glad I used my own title company. They found the previous foreclosure wasnt quite correct, and had to clear it up. If I had used the seller's/bank's title company I'm positive they would have just put an exclusion in the title policy, and when I eventually sell would be in a jam as a result.

I see this texture regularly, including my current house. It was common in the 70s through the 90s around here. Its harder to remove/scrape then true popcorn, and if its been painted over then just plain forget about trying to scape/sand it. The poster above that mentioned drywalling over it is spot on and that is what I'd recommend.

Congrats on the BRRRR! Any chance you can share more detail on your numbers and cash flow? PITI, maintenance, vacancy, capex, PM? I'm having a hard time wrapping my brain around the fact that monthly rent amount of $595 per month can cash flow over $200 with a refinance at $52k?

I'm originally from western PA (Cambria County) and still have family and friends there and go back for visits. same situation there, just a depressed area overall and lots of cheap homes that sit on the market. I've thought about investing there but so far haven't attempted anything. 

My advice would be two options: 1) find properties or sellers where you can get a steal. I'm talking half the going price. If homes are listed and selling at 50-60k, then try to get them for 20-30k, and rent them out. This way there is little risk to your investment, plus you will likely still a viable exit strategy in case you need to ever sell and recoup your initial investment. Don't ever really expect to get an appreciation in these area though. And look out for too much deferred maintenance on older homes. Option 2) look at a city like Pittsburgh an hour away and invest there instead. It may not have the growth as other major cities but at least it should be a little more stable than the small PA towns.

Sorry to hear about the scam. But you are doing an important service to others by sharing your story and exposing the scammers. Hopefully it will prevent others from loosing money and time.

Looks like Mr Guzman posted 12 properties for sales in the BP marketplace just a few days ago https://www.biggerpockets.com/forums/517/topics/401029-need-to-sell-12-houses-so-i-can-buy-27-houses

 Yes, multi units will have lower maint/capex numbers, that is true for sure. But in my opinion it doesnt matter if everything is gutted and new - you will still have to replace all the capex items again at some point if you plan to hold long term. Therefore its is wise to budget for it. Also you previously stated that you do 99% of repairs yourself and so only have materials to pay for, so your expenses would obviously be much less than anyone who is contracting out these services. Labor rates and service calls are getting quite pricey and for folks that cant do the repairs themselves they need to factor those expenses into the overall deal.

As others have already said dont worry about a separate expense for eviction if using a PM.

I'm a little surprised by the responses regarding the maintenance and capex numbers. I'm usually fairly conservative, especially for SFHs on these items. If planning to hold for a long time these can be very significant. Every property is unique and you can somewhat calculate capex in todays dollars. But only budgeting 10% of total rent for BOTH is far too low IMHO. For your scenario that's only $85/month, or about $1k a year. Start adding up replacement roof, hvac, water heater, appliances, flooring, siding, windows, water/sewer lines, painting, etc., and $1k a year will never cover everything that eventually need to be replaced.

Great job, congrats! And you have a great attitude about the work as well!

Seems high to me unless it's an elaborate system. Get some more quotes and also try to find someone that works on the side to do it. My friend has a cousin that works in the business and will do installs in evenings or weekends for considerable savings to the customer.