All Forum Posts by: Yoendry Torres

Hi, just checking if this event is still happening next week, Aug 12 at Ten55 Brewing? I've been out of the investing game for a bit over a year and I'm wanting to get back in. Thanks much, Yoendry

@Tylor Billings where can I get access to that type of data? I think it would be super helpful for other types of rental properties as well. Thanks!

@Joe H Watson

Hi Joe, what do you think about investing in NW Tucson or Oro Valley? Oro Valley seems to have stronger annual income than Tucson according to census data. Do you have any tips for analyzing city demographics? Besides city population growth, income, edu level, family make up and age... anything you look for? Thanks in advance.

@Kari McFarland

Welcome to Tucson. I relocated from Chicago about 6 years ago and I’ve been loving the warm weather year round. Cheers.

@G. Hays

Welcome to Tucson. I relocated from Chicago about 6 years ago and I’ve been loving the warm weather year round. I’m also looking to save for my first buy and hold property. Just learning as much as I can from BP podcast and starting to practice analyzing deals. Cheers.

Hi and welcome to Tucson! I'm new to BP and looking to networking and learning more about real estate investing.

Thanks Andrew for the AZREIA link. I'll check it out.

Hi, I'm a newbie to all this and wanted to chime in... with some thoughts and questions. I also thought that the insurance amount (1500/month) was astronomically high and probably an annual fee rather than a monthly fee. I'm glad to hear that its actually more like $125/month for the insurance.

The property does meet the 1% rule, although very low end (1.11%). The property also meets the 50% rule but barely with only $56 of projected cash flow with 50% rule. Based on my calculations (considering that insurance is $125/month), the cash on cash return is only about 2.9%. Is this a good return? Seems low to me but better than negative and the property would gain equity as the tenets pay it off. 

Further analysis projects that the cash flow would be about $153/month total, which sounds low for a triplex. I recall learning on bigger pockets podcast that at least $100/unit is decent (is this correct), thus shouldn't the monthly cash flow be more like $300 to be a good deal?

I also recall learning on bigger pockets podcast that properties of 5+ units are considered commercial and have higher loan costs and you might want to consider that into your estimates.

All-in-all, I don't think I would do this deal unless you can either increase the rent to what you suggested, which would result in closer to $566 of monthly cash flow. However, as Alex mentioned, increasing the rent that much of the start would probably lead to vacancies. I would suggest perhaps dividing the increase into 2-3 years and increase the rent every year by $80/unit for 2 years or $53/unit each year for 3 years. What do you all think? Is this a good strategy to increase the rent or is Alex better of increasing the full amount from start?

Thanks and I hope to learn as well from this deal.