All Forum Posts by: Walter Key

https://www.biggerpockets.com/renewsblog/2014/01/0...

https://www.biggerpockets.com/renewsblog/category/...

Your initial PITI doesn't match your individual breakdown if PITI line items.

@Jordan Hamm

Here's how I see your numbers. I added a 5% CAPEX and removed the income tax altogether. I'm not familiar with anyone using the projected income tax in there analysis.

Gross Rent $1,900.00

Mortgage (P&I) $604.00

Property Taxes $276.00

Insurance $75.00

Maintenance $190.00

Cap Ex $95.00

Management Fee $79.00 (This is a GREAT price on a $1900/mo rent. Traditionally 10%)

Vacancy (10%) $190.00

Total Expenses $1,509.00

Net Operating Income $995.00

Monthly Cash Flow $391.00

Yearly Cash Flow $4,692.00

Simple Monthly ROI 25.91%

Different strokes for different folks. Everyone's investment goals, risk tolerances, working capital, construction/rehab experience and many other factors are different. The most important question you should be asking, to yourself, is "does this deal work for me"?

Just out of curiosity, was this wholesale company based in FL? If so, I may want to add them to my list of potential resources. :D

@Brad Dacus Welcome aboard! I have a couple rentals in Nebraska, it's a great market. As you get up and running, fee free to contact me if you have questions, need some good contacts, etc. The BEST management company in Nebraska is right there in Bellevue.

LOL. I'm up because it's only 8:45PM right now...I'm in Japan! :D

@Steve Haight Type @"First name" (without quotations). No space between the at and the name. A list of names will pop up with those that match the first name. Just click on the one you want to tag.

My per policy is under 25 pounds with a pet deposit. Amount of the deposit will depend on factors such as, what the rent is, what the other rentals in your market are charging, etc. A good property manager in your area is a great place to grab this info.

"What other information should I gather in order to make an offer that's both fair to her and to myself?"

FAIR is a very relative term. FAIR speaks of an emotional equation. Take emotion out of the situation. That's how people lose money. 

What do you intend to do with the property? Rehab and Rent? Rehab and Flip? Throw down some new flooring and paint and re-sale or rent? What your plan for the property is will help determine the information you need.

@Ralph Corgain I'm not sure I'm following your strategy. You're targeting the landlords that are in the process of evicting a tenant? Is your goal to see if they are fed up with being a landlord and would sell to you?