4 August 2020 | 9 replies
Purchase Price: $150,0003.5% down: $5,250Closing costs: $3,000Rehab (adding walls/closet for additional bedroom): $5,000monthly mortgage+tax+insurance (quote from lender): $1176 (1176*12= $14,112 for year)other monthly expenses: $300 (300*12= $3600 for year)All-in cash needed for year 1, assuming absolute worst case scenario and I can't find any single bedroom renters for the first year while I am living there:$30,962 After $7,500 room and board reimbursement from employer: $23,462I plan on pricing each bedroom way below market rent at $350/month, to try to fill up each bedroom and cut away at year 1 costs.If I can rent out 1 bedroom: (23,462-(350*12)) = $19,262 If I can rent out 2 bedrooms: (23,462-(700*12)) = $15,062If I can rent out all 3 bedrooms: (23,462-(1050*12)) = $10,862BP Calculator (after year 1) assuming worst case year 1 scenario:Note: I added money to "repair costs" to change numbers to reflect 12 months of mortgage payments I would have made during year 1.https://www.biggerpockets.com/analysis/rentals/df4b1eda-9cde-41ee-afb7-f8d9cdb8724c.pdfBP Calculator (after year 1) assuming mid-scenario where I manage to average 1 bedroom rented during the year I'm there.https://www.biggerpockets.com/analysis/rentals/df4b1eda-9cde-41ee-afb7-f8d9cdb8724c.pdfCoC ROI goes from 5.7 to 8.5.Also, I plan on eventually refinancing to a conventional loan, lowering my fixed costs from about 1200 to somewhere in the 800-900 range, freeing up 300-400 more in cash flow each month and increasing the CoC ROI.Would very much appreciate it if somebody could try to find holes in my plan.
6 May 2020 | 0 replies
I'm in the planning stages of my business and can't wait to get my family moved into a duplex/multi family rent hack situation within a year or two.
6 May 2020 | 3 replies
Comparable Market Analysis ARV average (most recent sold in past 6 month): 240k3.
6 May 2020 | 2 replies
I'm still learning on how to read these analysis.
8 May 2020 | 5 replies
It’s an interesting fund, AirBnB decided who needs to get it based on their analysis of how your bookings are impacted.
17 May 2020 | 9 replies
I am graduating in December with a Bachelors Degree in Finance so I have a good understanding of risk/return, tradeoffs, cash flow analysis, etc.
7 May 2020 | 3 replies
What stage of purchasing the duplex are you at?
13 May 2020 | 7 replies
Most people here seem to recommend against mixing family and business, but if you're confident in your analysis and know that this deal is going to cash flow, you can make it work.3.
9 May 2020 | 6 replies
I’ve seen appraisers make glaring mistakes in their analysis.
8 May 2020 | 2 replies
This is my first new construction and I would be very interested in the opinions of others with experience. This is for a self storage facility that includes 4 aces. The plan is to develop half the acreage with 3 or...