Roast my property analysis

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  • Amanda M.
    Realtor · MN · Member since 2024 · 33 posts · 18 votes
    2y

    Overall it looks like you captured the key data, I would include a row with % for each expense to calculate off of so you can see what your assumptions are easily or change them. I.e. Cap x is 5% and calc off that and prop mgmt is 10%, etc. Not every project will use the exact same ratios, if you're doing a flip and everything is brand new than you probably don't need much for cap x, but if it's an old house needing repairs than that will likely need to be higher. Or if you're considering LTR and STR than prop. mgmt fees will vary greatly.

    0Reply
  • Nathan Harden
    Real Estate Agent · Puyallup, WA · Member since 2022 · 551 posts · 379 votes
    2y

    Okay, so if you're Househacking, why would you need a Property Manager....? You are the Property Manager.

    Your analysis has 2 units that total out to $1800. But if you're Househacking then you need to take away the income for one of those units because you'll be living in that unit.

    I don't see water, sewage or garbage either. 

    0Reply
  • Malik Elate
    OP
    Member since 2024 · 6 posts · 3 votes
    2y
    Quote from @Nathan Harden:

    Okay, so if you're Househacking, why would you need a Property Manager....? You are the Property Manager.

    Your analysis has 2 units that total out to $1800. But if you're Househacking then you need to take away the income for one of those units because you'll be living in that unit.

    I don't see water, sewage or garbage either. 


     I read in the biggerpockets book to include property management in the event that I move out, I will add water and garbage as well

    0Reply
  • Malik Elate
    OP
    Member since 2024 · 6 posts · 3 votes
    2y
    Quote from @Amanda M.:

    Overall it looks like you captured the key data, I would include a row with % for each expense to calculate off of so you can see what your assumptions are easily or change them. I.e. Cap x is 5% and calc off that and prop mgmt is 10%, etc. Not every project will use the exact same ratios, if you're doing a flip and everything is brand new than you probably don't need much for cap x, but if it's an old house needing repairs than that will likely need to be higher. Or if you're considering LTR and STR than prop. mgmt fees will vary greatly.


     Good idea for the percentage row, I am going with LTR, thank you

    0Reply
  • Jake BakerBusiness Member
    Flipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 695 votes
    2y

    @Malik Elate

    $3000 Closing costs seem a little low. Is any rehab required? 

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    0Reply
  • Isaiah Lopez-Torres
    Rental Property Investor · Cincinnati, OH · Member since 2023 · 62 posts · 35 votes
    2y
    Quote from @Malik Elate:
    Quote from @Nathan Harden:

    Okay, so if you're Househacking, why would you need a Property Manager....? You are the Property Manager.

    Your analysis has 2 units that total out to $1800. But if you're Househacking then you need to take away the income for one of those units because you'll be living in that unit.

    I don't see water, sewage or garbage either. 


     I read in the biggerpockets book to include property management in the event that I move out, I will add water and garbage as well


     Even if you move out you can still self manage the property. If you have good tenants in place and have systems developed you can pocket that money monthly until you scale significantly. Then look into property management as needed. Just my advice.

    0Reply
  • Malik Elate
    OP
    Member since 2024 · 6 posts · 3 votes
    2y
    Quote from @Jake Baker:

    @Malik Elate

    $3000 Closing costs seem a little low. Is any rehab required? 


     I'm using down payment assistance, 3000 is what I estimate will be out of pocket after

    1Reply
  • Malik Elate
    OP
    Member since 2024 · 6 posts · 3 votes
    2y
    Quote from @Isaiah Lopez-Torres:
    Quote from @Malik Elate:
    Quote from @Nathan Harden:

    Okay, so if you're Househacking, why would you need a Property Manager....? You are the Property Manager.

    Your analysis has 2 units that total out to $1800. But if you're Househacking then you need to take away the income for one of those units because you'll be living in that unit.

    I don't see water, sewage or garbage either. 


     I read in the biggerpockets book to include property management in the event that I move out, I will add water and garbage as well


     Even if you move out you can still self manage the property. If you have good tenants in place and have systems developed you can pocket that money monthly until you scale significantly. Then look into property management as needed. Just my advice.


     Ok yeah that sounds good, also to answer your other question, the first units rent is for a roommate, I can rent out of the rooms in my unit

    0Reply
  • John Morris
    Gainesville, FL · Member since 2024 · 3 posts · 3 votes
    2y
    Thanks for sharing your numbers. I plan to duplex or triplex hack and I am including 5% for management as a buffer in case there is something I am not factoring in. Also, in six years I will move from this area and may not be able to manage remotely.
    0Reply
  • Tim SwierczekPro Member
    Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
    2y

    @Malik Elate how did this go for you? Did you purchase this one?

    0Reply
  • Malik Elate
    OP
    Member since 2024 · 6 posts · 3 votes
    2y
    Quote from @Tim Swierczek:

    @Malik Elate how did this go for you? Did you purchase this one?


     Thanks for asking, closing on a different place Saturday!

    1Reply
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