All Forum Posts by: Samir Shahani

In my initial calculations I only accounted for 10% of rent. 

I just engaged my first property management company.

They suggested that to find a tenant it will cost 1 months rent for commission split.

AND

On an on-going basis, we will be putting the property under their management, which will cost 10% of revenue (rent).

Does this sound reasonable for SFH's?

Do you have W2 income?

Otherwise, get a financier or a co-signer. 

@Ed E. agreed 100%

@Edward Fagbemi What are you attempting to do? 20% down? 

@OP It won't happen.  There are enough checks and balances in the system to avoid such a simplistic doom. 

"...but in this world nothing can be said to be certain, except death and taxes"

Pay it and move on.  

**Edit** After doing everything you should do (401k, IRA, depreciate, write off expenses)

Congratulations on making the decision to get into REI!! What you are describing sounds like a great start!

I would suggest creating  a  spreadsheet like the one I made below.  Be realistic (or even pessimistic) when filling it in. I'll repeat that. Be pessimistic when determining all of the inputs (price of home, mortgage terms, down payment, rental price, etc.).  That way, when it turns out better than expected, you will be delighted!

Compare properties and determine what is the best  for you and your family.  

I would  then suggest not taking  too much time in the famous "analysis paralysis", if you found a property that meets your criteria chance are that another investor did too.  Beat him or her to it!

Jump in and keep us informed!

**Hypothetical properties and figures !! ** 

Please correct me if I'm wrong, but  I think that the correct way to calculate your taxable income would be as follows:

+ Primary Income (if you have a W2 job)

+ Rental Income

- depreciation (27.5  SL)

- interest payments on mortgage

- business  related expenses (insurance, advertising, maintenance,  etc)

You  may end up with  the same answer by doing it the way you suggested, but in many cases you won't.  So verify and make sure that you are doing it in accordance with tax laws.

As suggested above please correct me if I'm wrong,  I do not mean to publish incorrect information. 

But, either way, from a cash flow standpoint this house will not be self-sufficient based on the numbers you provided.  So unless you are expecting some really great appreciation then  this is probably a bad investment. 

Its sickening that the whole system is designed to prevent the common person from ever having any real assets or equity in anything.
There are so many millions of people who succumb to the marketing and advertising of large companies.  It's not just credit cards, its every company. It's particularly sad when the person doesn't even know what is happening. 

It's very easy to buy a BMW for $600/month.  But if someone asked you to come out of pocket $45,000; that's a bit different, isn't it? 

Congrats on getting out of debt, and good luck. 

What is your goal? 

Leads for what type of transaction? 

What does your current mailing say? 

How long have you waited before expecting a reply?