All Forum Posts by: Kat Hussey

How do you run rental comps when you're analyzing a potential deal? I'm new and don't know the area well enough, so I have to look it up, but I don't know where to start in that respect. Do you have any specifics metrics you look at? Do you recommend a service that looks it up for you?

What is your favorite brand of paint?  I'm looking for a cost effective yet durable paint for rentals. I haven't really noticed a difference between them as far as durability, but I'm young so maybe I just haven't lived through their life yet.

@Alex Fortsch I always forget that the first portion is taxed at the lower rate before it goes up. Thank you fit the link!

@Ray Hurteau Would your elaborate on the outdoor sensitivity analysis? I've never heard that term before.

Thank you everyone for your suggestions. I have been using the bigger Pockets calculator and I am factoring in holding costs. I have used the highest estimated rehab cost and lowest sale price to give myself a buffer, so that's why the deal doesn't look so shiny. I would prefer to buy the property for around $30k, so we'll see what happens with that.

How would you recommend including income tax info my calculation? Should I assume 22-24% of profit will be taxed and add that to my expenses?

@Kenneth Garrett

This would be my first deal, so I'm not as worried about getting a home run profit as I am about getting the experience and breaking even at least and hopefully making some money. I bet it could sell for more than $200k, but I am being conservative just in case.

@Alex Fortsch Thank you for that explanation! Looking at it from what the proceeds will be makes so much more sense now.

If I buy a house for 50k, put 100k into rehab, then sell it for 200k with 6% agent commission, do I actually make a profit? Or do I just get back my original 30k?

Deal:

Money Out of Pocket: 30k (rest is financed)

Buy: 50k with 5000 closing costs

Rehab: 100k roughly based on my estimates

Sale: 200k and 12k commission

Hello! I'm looking at a property that's in a great location, but the rents in the area are just a little lower than makes sense. However, this area is very close to downtown and I think could be great for a rent-by-room property for young professionals. How does one run rental comps for this?  

Does this deal make sense and seem like a good investment if it works out for the added bedroom/lot unit?

Details:

3bed/2bath (potential for garage conversion to a 4/3 or 4/4 depending on floorplan)

1300 Sqr Ft

2 Driveways

Year built: 2000

From what I can tell, it only needs minor cosmetic updates, but I'll get an inspection after under contract.

Listed at $339,000 (DOM: 83, so I could probably get it for less)

There is also a small lot next door that I could build one more unit on, possibly a tiny house. This would make it a 5//4 or 5/5 total for the property & lot. The lot is listed at $95,000

Rent for 3/2 in area: $2600 (plus extra unit in back for $1025  = $3625)

Rent for 1/1 in area: $1025 (x 5 units = $5125)

^these were the approx. averages from rentometer.com.

I'm thinking I could offer $380,000 for both the house and the lot, then buy a tiny house for approx. $60,000 for the back lot. All-in: $440,000