Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 7 years ago on . Most recent reply

User Stats

24
Posts
0
Votes
Griffin Myers
  • Cleveland, OH
0
Votes |
24
Posts

How do you find house hacks that make sense?

Griffin Myers
  • Cleveland, OH
Posted

Where I'm located, a duplex in a decent area is going to run you at least $125k. Fully rented, rents in said decent area might be $1500-$1600/month. Taxes in Cleveland are generally high, with some areas being downright absurd. Assumptions include 10% for property management, 5% vacancy, 5% for repairs, 10% for capex, $75 for insurance and $100 for utilities. Considering those numbers along with a monthly mortgage payment of $620 (on a $125k property), I'm yet to find a deal that positively cash flows, and I've looked at a lot. I know the market is tight nowadays, but how is anyone finding deals? Are my assumptions bad? 

Apologies for the rant - I'm new at this, but it's getting frustrating analyzing over 50 properties and not one positively cash flows (and some people want over $100/door....?).

Most Popular Reply

User Stats

28,431
Posts
19,527
Votes
James Wise#3 All Forums Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
19,527
Votes |
28,431
Posts
James Wise#3 All Forums Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
Replied
Originally posted by @Griffin Myers:

Where I'm located, a duplex in a decent area is going to run you at least $125k. Fully rented, rents in said decent area might be $1500-$1600/month. Taxes in Cleveland are generally high, with some areas being downright absurd. Assumptions include 10% for property management, 5% vacancy, 5% for repairs, 10% for capex, $75 for insurance and $100 for utilities. Considering those numbers along with a monthly mortgage payment of $620 (on a $125k property), I'm yet to find a deal that positively cash flows, and I've looked at a lot. I know the market is tight nowadays, but how is anyone finding deals? Are my assumptions bad? 

Apologies for the rant - I'm new at this, but it's getting frustrating analyzing over 50 properties and not one positively cash flows (and some people want over $100/door....?).

 Using your figures you are expecting to spend $57,600 over the next 30 years on a duplex. That is not something you'll be doing. Look at it pragmatically.

  • A roof on a typical Cleveland duplex will run you about $6,000. A Roof will last 30 years.
  • A Hot water tank is gonna be about $1,000. You have two in the property & they last close to 15 years so that's $4,000 over the next 30 years.
  • Furnaces last 20+ years so over the next 30 years let's say you replace each one. That's about $6,000.

That's your major big ticket items that will need replacement. Total cost over 30 years $16,000.

After looking at it this way do you really think you'll need to spend an additional $41,600 in other capital improvements?

Loading replies...