Running Rental numbers

[Shain Cannon]

Hello all. Still very green to this market and I’ve been listening to the BP podcast 6-8 hrs a day (at work) for the past couple weeks. So I am learning a lot! I would like some extra eyes to help run the numbers on turning my current owner occupied residence into a rental.

I’ll just give the whole backstory so we have all the information to make the most informed decision.

Everett Washington, about an 30 min north of Seattle, house is located about 5 minutes east of the Everett Boeing plant.

3 bed, one of which has a kitchenette, 2 bath, 3 car garage With an automotive lift, parking for 7-10 cars, RV parking and no HOA.

Original purchase price $300,000 Jan 2016

Payed down to $285,000(ish)

Cash out refi $322,000, invested $35,000 into rehab 2019

Arv refi 2020 to $330,000 (arv in today’s market $480,000-$500,000)

My current mortgage Payment is $1910.80. I am pretty sure property taxes and insurance are part of that payment as I don't pay an separate bills for tax or insurance. No PMI on the loan.

Typical rent for a comparable is $2600-$2700. I have a tenet lined up for $2700. No contracts have been started but the option is there.

Income would be $790

- 10% for vacancy $520

-10% for repairs $250

-10% for cap ex. -$20

NOI = -$20

Is this correct? It seems there are more factors if starting a BRRRR but minus The renter I seem to have model the BRRRR process without the proper numbers haha. It was never the intention just what's happened over the last 5 years. If my numbers are correct would I be better off just selling it in today's market? If I rent it the current plan is to get a heloc for the next BRRRR using the current house as the asset. Maybe that's a flawed plan too, again I'm learning.

Thank you!!

[Sherief Elbassuoni]

@Shain Cannon, the rent of some of my properties are above the market comparable (because I use high-end finishes) and still see vacancy less than 10%. One more thing I do is that 3 month before renewal, I send a lettet to my tenants and tell them new year rent is gonna be $x. If you renewed by next month, you will get this discount. If they renewed, that is fine. If they did not renew, that is also fine, but at least I have one to two months to advertise and find new tenants.

Feel free to call if you got other questions.

Thanks,