All Forum Posts by: Saurabh Kukreja

Thank You @Joe Splitrock for sharing your thoughts, I really like your last point and I think I have been doing that trying to find properties around 100K but gravitating towards 75K - 80K, With this approach I think I can look in better neighborhoods with better prices.

@Bill B. Awesome guidance to navigate in the market. Thank You so much for all the crux pointers. When you have all these no's figured out you only get the best ut of it.

Hey Guys,

I am in the process of analyzing deals and making offers ( already signed second offer, fingers crossed ). 

In this process of analyzing deals, I have realized that if the property is not falling under the 1% rule ( I know it's quick math ) I don't even look at that my cash flow drops to 5-6% 

But Some of them are very nice homes in good areas and I am skipping over those just because on paper they don't seem like a good deal. But still, someone else is still buying that property for sure.

Here is what I am trying to understand:

How do other folks have positive cash flow if it's not the 1% rule? Would some of you mind sharing what other things you look at while analyzing deals? 

I would appreciate it if you can share some numbers like purchase Price, Rent, Cashflow, zip code? It could help me and new investors to have a feel of what to aim at?

Areas I am looking in is Memphis and in general, If I have to say I am using the below numbers to analyze :

• Vacancy: 5% ( Increase it to 8 If I doubt the location )
• Repairs: 8% ( reduce it 5 if newer property )
• Capex: 8% ( reduce it 5 if newer property )
• Prop Management: 10%
• Leasing Fee : 3%

Thank You

@Allen L. Thank you for sharing your inputs. These numbers are for a home around 50 years old ( around 1970s).

So does it mean that if its a old home, I should add maybe 10% for Capex and repairs instead of 8%? or even more

I will add 2% lease, I missed it somehow. and with that obviously, it will even fall down,

Would you mind sharing your per door number ( assuming 20% down ) or what you target to achieve with SFH?

I am trying to analyze deals these days and came across this 4 square method.

According to these numbers even with 1% rule, I am not able to get 200 per door per month.

Is this what your guys' numbers look like? Can I call a deal good if I am not even making 200 per door?

Looking to hear your thoughts @Douglas Skipworth @Dean Harris @Curt Davis

@Ashley Yoviene That's what I am trying to do with my own Excel sheet. I am starting to wonder if I am too conservative in my numbers and not getting expected cash flow. But I guess that's good learning for me and giving me an opportunity to explore the market better and be confident in my decision when the time comes. Good luck to you as weel in your search.

If I look and try to understand the Memphis market by reading forums on BP , I don't see any posts which are posted less than a year ago or a few months.

All the posts are 2 or 3 Years old. I suspect 2 things:

1) I am searching it wrong

2) No one is now interested in the Memphis market and is saturated.

My Goals are cash flow with little appreciation in B class neighbourhood with around 100k-115K purchaseprice. Is Memphis not the right choice now in 2021?

Hello Folks

I am a newbie to REI and here to learn and start investing. I am trying to learn by watching Brandon and David's podcast and they are awesome!

I want to get my first rental property by end of this year to close 2021 on a good note! 

I started to explore different markets and read some trends in each to narrow down the market that I want to make this deal in. 

Right now I am focussing on Memphis, Jacksonville, Alabama, Akron(OH)

My goal is more inclined towards cash flow so I can build a stream of passive income and obviously I would not mind appreciation. I am planning to buy something around 100-125K ( with 20-30 % down payment) 

Need some advice, if I am looking at the right markets based on my criteria, landlord friendliness?

Should I consider any other markets that can help me achieve what I want?

Please share Which one would you go for?

Thank you