All Forum Posts by: Sean Mcmahon

That's a great point...hadn't thought of that before. Thanks! 

Hi BP Community! Do any investors in Cape Coral / Ft. Myers-area have a property management company they use/recommend? 

@Greg Scott @Daniel Kong @Thomas J. Clifford I hadn't thought about it that way. That makes sense. Thanks for the insight! 

@Caleb Heimsoth I am curious where else you think David's advice falls flat? 

Thanks guys! 

I apologize if this is a newbie question and for the provocative title :)

In David’s book Long-Distance Real Estate Investing, he says its beneficial to find an agent who is also an investor in the area. I understand the benefits of the on-the-ground knowledge and the unique perspective an investor-agent brings.

But won’t that agent keep all the best deals to themselves?

Apologies for resurrecting an old thread. Five months after the original post, do you see housing prices continuing to soften or have things started to stabilize now?  Or do you think better times for investors in the Cape still yet to come? 

@Nic Stergion thanks Nic!

@Nic Stergion Tha is Nic!

Hi BP community, 

I am getting ready to put an offer in on my first investment property. I know a lot of what makes a deal good or not depends upon your goals. That aside, I wanted to share details on this deal (pure cash-flow play) and and hear your insight and wisdom if you think this deal makes sense. Since this is my first, I ran very conservative numbers (which I'll be making by decision off of but I've also included more realistic numbers). 

Details: 

• C-class property in a C-class neighborhood in SE Virginia 
• 3/1 SFR: $37K to acquire and $30K for rehab (redoing just about everything). 75K-85K ARV
• $750 a month rent, 12% vacancy (property manager tells me 8% is more likely but I want to be conservative), 10% property management, 7.5% repairs, 5% cap-ex, all utilities paid by tenant, property tax adjusted to an ARV of 90K. 
• Rehab out of pocket, 25% downpayment on house; cash out of pocket 41K (as an FYI: a BRRRR doesn't make sense on the more conservative underwriting). 

Conservative underwriting: Cash flow: $205 a month; CoC return of 5.9%, CAP rate 11.3% 

The property manager tells me I should expect $850 a month in rent with 8% vacancy. More realistic numbers: $317 a month cash flow, 9.2% CoC, 14.9% CAP rate. 

Is this a good deal even with the conservative numbers?