All Forum Posts by: Stephen Collins
Stephen Collins has started 12 posts and replied 46 times.
Post: Where is the opportunity to invest in 2014
- Boston, MA
- Posts 48
- Votes 6
@James Park would you invest in Charlotte or Atlanta? Lets say for a buy and hold SFH.
Post: Is this too tight of a deal?
- Boston, MA
- Posts 48
- Votes 6
@Sharad M. I am very flexible with where I invest. I serve in the Armed Forces and expect to be moved around the country. I picked "hot markets" according to Forbes and found a connection to #3 Charlotte, NC and #4 Nashville, TN. I have been working with a realtor and this was one of the "better" investment properties she had in those areas. I am not so convinced. If you had free reign of the country what market would you invest in?
Post: Is this too tight of a deal?
- Boston, MA
- Posts 48
- Votes 6
@Matt Schelberg The house was built in 2002. I agree a roof will last for about 20 years. 20(average)-12(time already spent) leaves me about 8-10 years before I plan on spending the $5,000 for the roof.
Property taxes, along with insurance, and mortgage were totaled into "monthly housing expense" and subtracted from the monthly operating income leaving me with monthly cash flow.
Post: Is this too tight of a deal?
- Boston, MA
- Posts 48
- Votes 6
- List Price $85,000
- Target Purchase Price $80,000
- Cash P/I reserves need by bank, and closing costs $6,000
- Renovations $10,000
- TOTAL CASH OUTLAY $32,000
- CAP Rate 8.22%
- Cash Flow + Equity + Appreciation (3%) = $648 + $2133+ $2400 = $5180
- Total ROI = 5180/ 32000 = 16.2%
@Sharad M. @Jerry W.
Post: Is this too tight of a deal?
- Boston, MA
- Posts 48
- Votes 6
I am sorry for the inconvenience. I appreciate your help!
Post: Is this too tight of a deal?
- Boston, MA
- Posts 48
- Votes 6
Can you please take a look at my number crunching and see if mathematically I made any mistakes when trying to determine CAP, COC, and Total ROI? This was a great read and really helped me out! I know these valuations are more for multiunit buildings, I was trying to create a system of comparing "apples to apples" if I look elsewhere.
http://www.biggerpockets.com/renewsblog/2010/06/30/introduction-to-real-estate-analysis-investing/
I am being very conservative for my expenses and I know it shows, but is this deal too tight? The house is in a great market and if I can get it a little under list price, add in all the renovations I should still be about 20K undervalued, next to all the comparables in the neighborhood.