All Forum Posts by: Sage Jankowitz

Excellent explanation Scott. That really clears everything up.

Just curious, but based on the surface info you have here, would you consider this property further?

Thanks for another great reply Jon. A couple of quick questions:

1. When you say the difference is coming from my cash, do you mean that I would have to pay in cash since of the low purchase price? Or where is the discrepancy between the $263 and $191? A bit confused on that.

2. I was under the impression that HOA should be included in the 50% rule. I'm assuming you're making the point that the 50% rule is a good rule of thumb, but if one is planning on purchasing a property they have to make sure the HOA isn't wildly high.

3. Would the RE agent be required to give me all of these HOA details or would I have to do some prodding on my own?

As for the rents, I actually gave pretty low estimates. From the comps I have which seem to be pretty good, similar properties rent for $1,100-$1,400. Interesting...Perhaps I should look into this further and see if I can partner with someone more experienced and with funds...

So I'm not buying for some time, but I've been looking at some REO properties in my area to see what's available. I found a condo close by that seems to fit the 50% rule, but I just wanted to double check with the experts:

Price: $54,000
Rent: $1,100
Mortgage: $43,200 (w/ 20% down, 7% interest, over 30 yrs)
Annual Rental Income: $13,200
NOI 50%: $6,600
Annual mortgage payment: $3,444
Annual Cash flow: $3,156 or $263/month

Again, just looking to see if the math was correct here and if you guys would pounce on a deal like this...

As far as I know HOA fees are included in the 50% rule, but I'm not certain...

Oh and the mortgage is at 7% interest...

So I'm not buying for some time, but I've been looking at some REO properties in my area to see what's available. I found a condo close by that seems to fit the 50% rule, but I just wanted to double check with the experts:

Price: $54,000
Rent: $1,100
Mortgage: $43,200 (w/ 20% down over 30 yrs)
Annual Rental Income: $13,200
NOI 50%: $6,600
Annual mortgage payment: $3,444
Annual Cash flow: $3,156 or $263/month

Again, just looking to see if the math was correct here and if you guys would pounce on a deal like this...

Eddie, good to see another film/tv guy on BP!

A couple of questions:

-You mentioned you own short term cash flow. Does that mean you purchase SFR's and take the cash flow for a couple of years while the local market is good and then sell when the area slows and move on? If not what's the strategy there?

-When you say "there are places where you can buy cash" what are you referring to? Are you talking about foreclosures and other properties that lenders are trying to sell off for extremely low prices?

-One thing that worries me with SFR's is tenant vacancy. What do you do when your tenant bounces from your first property and you're losing $XXXX every month? I would think a duplex or triplex would be safer in terms of cutting your losses, but maybe I'm oversimplifying?

What are you doing in film btw? I was an assistant in NY for a PBS producer and indy film exec producer. Thanks for the good advice Eddie!

Great post Michael. That last line sums it up for me. I want to be successful in this business so bad and I know I will. I wake up every morning thinking about that first property I'll purchase down the road.

I feed off of criticism. Any doubt or fear I have within myself encourages me to learn more and work harder. I've always been this way and I don't plan to change anytime soon.

First in regard to my money situation:

For the past three years I was working in the film industry in NY. After that period of time it became clear to me that the industry was not a good fit for me and about 3 months ago I moved back home in MA and have begun saving up, working various jobs, some film related, some not.

By no means do I have the funds to invest right now and I don't plan on it. However, I'm at home and spending bare minimum and saving up rapidly. I want to educate myself now so when the time comes, whether it's 6 months, a year, or more, I have a game plan and can execute.

I've been reading literally non-stop for the last two months (about a book a day) and checking BP and other blogs frequently.

As for what specifically I want to do, I'm a bit torn at this point, but leaning toward rentals.

I'm currently interviewing with two investors in the area and I hope through my hands on experience I will have a better idea as to which direction I want to go.

Hi Shaun,

I thought I was clear, but maybe I was not...I'm asking for advice because I'm currently saving up and looking to invest in 8 to 12 months.

In the meantime I'm looking for constructive advice. If you have any to offer, by all means I would love to hear what you have to say.