All Forum Posts by: Troy Studer

Sourced this worksheet online, Enjoy!

https://finomad.com/post/2018/4_21-ultimate-spreadsheet/

- Troy 

@Brenden Mitchum

Wow, thank you very much for bringing that to my attention! I Can't believe i missed that.

Does anyone have a suggestion for estimating Rent on a property? I used the local online classifieds to get an idea of the renters market. I have a good feeling this unit is renting a bit low. I have also used Rentometer to get an idea.

@Brenden Mitchum

On my spreadsheet I estimated 8% for capital expenditures coming in at about $1,600 annually on this property. I did plan on managing this property on my own but maybe it’s a good idea to factor 10% management fees for a contingency plan down the road?

I called my local credit union and was pre-approved for a 15-year fixed, no points at the 2.8%. I did specify that this would be an investment property but maybe I should double check with the bank. I have played around with the numbers. A 30-year fixed does seem to cash flow better, which makes sense! I just thought a 15-year fixed may secure that better rate.

@Aaron Montague

I like your suggestion for factoring the 10% management fees. I think it gives me options down the road if I end up acquiring more units.

Is the 30 Year loan better because it allows me more leverage? Or do you feel it’s not worth saving the small % in interest rate and locking into the large monthly payment? I do understand that due to inflation if I kept the loan for 30 years I would pay back less. I’m a financially conservative individual but maybe I should learn to tolerate some more risk.

Thank you for the Example! $150/Door is your monthly cash flow per unit?

Thank you both for your replies! The feedback really helps.

- Troy

Hello,

I am a first-time investor looking to buy a local Duplex.

The home is posted at a listing price of 134,000. As is, the home can rent conservatively for $900 per unit. The property requires no major CapEx in the short term. The home could use some minor cosmetic updates, which would likely fetch a higher rent price. Given the numbers on the spreadsheet attached below. Does anyone have a suggestion on what sort of cash flow or ROI to make my first and final offers based on?

I know this likely has everything to do with local market and what other deals are available to me. I also can apply a lot of the generic rules of thumb like the 20% Rule, 50% Rule, 2% Rule. I'm looking for further insight from some experienced investors. I am attempting to be as objective about this investment as possible.

Any and all input is much appreciated!

-Sincerely Troy