All Forum Posts by: Scott Walters

@Jeff Brower this is what a friend and me were thinking. Refi later in life, so you get the gain with the equity out at no tax, the. will properties to the kids and no capital gains.

@Jack Orthman thanks Jack for the insight. GRM is another number I'm looking at and will consider more importantly.

@Benjamin Piecenski Hi Ben, thanks that was helpful. Another question, we've been told to form an LLC. With that what type of loan do you recommend or can we get with an LLC? Can we get a standard 30 year FHA loan? I'm told also we are limited to the number of FHA loans we can get per person to 10?

As I try to figure out what to pay for a property where can I find what capitalization rates are for specific areas?

@Frank Patalano

I’m in learning mode right now. I’ve learned a lot in past 4 weeks and hope to make first offer in August. I’ve aligned mortgage lenders, and investors, have contractors aligned to do work, have just recently found real estate agent that understands what I want to do, which is own single family and duplex properties. What’s holding me back is two things. First do you base your estimate on 15 or 30 year loans?

Second question is on foreclosures. I’ve been on websites like Auction.com, what I don’t know is what to ask or check for prior to bidding?

Excited to get number one and the next one soon after.

Hi all

I’m what you’d define as a newbie whose looking to make his first purchase very soon. A key financial goal is to have positive cash flow. Do you recommend to go with a 15 or 30 year loan when running the numbers?

I've been using 15 year in my analysis of single family homes in the area as a comparison. Either the price I need to pay must be much lower than the asking price on MLS or the rent needs to be higher than the market, or I need to lower the costs I've assumed? The cost items that are not fixed assumptions are: vacancy 10% of yearly income, maintenance 4% of income, CapX 4% of income.

15 or 30 is the question?

Thanks.

Hi all - great input. I've developed a spread sheet to help analyze a property, very willing to share. I've made a number of assumptions I would like to run by you. One thing I'm finding with my assumptions is that for the numbers to be what I define as good, the price I need the property at is significantly below the asking price. Let me give you a for real example of a duplex I'm looking at: Asking price: $176K Income: $25K Expenses:$13K For expenses I made the following assumptions: 10% vacancy, $50/unit/month repair budget, CapX budget of 2% of the purchase price, in this case I'm thinking of offering $140K, taxes $5K and insurance $1.5K. All utilities, lawncare, snow removal paid by renter. For a rehab budget I figured $8K, unit looks in good shape but it needs paint, plus I figured $4.5K for closing cost. My total out of cash will be $41K, I desire a 10% ROI on cash(do I put this down as an expense against cash flow?, which I have not yet). Based on these numbers the cash flow would be +$147/month, which is only 4% cash ROI. If I want to pay myself back the ROI on cash I would now be negative cash flow. Thanks for any input.