My first deal! Take a look...

[Caleb Anderson]

Hey BP community, thanks for taking a look.

I tried posting a link to my spreadsheet breakdown. Not sure if it made it. Just threw together this sheet, didn't finish the ROI part yet because I am partnering and the are supplying the cash, I work the deal and whatnot, and we split everything 50/50. Probably putting 8k in repairs to the house on purchase.

file:///C:/Users/Caleb/AppData/Local/Temp/Temp1_REI.%20255%20Churchill%20Way.zip/Sheet1.html

Thanks!

[Michael Ehmann]

Want to try posting again? I can't see it.

[Caleb Anderson]

That link should work... I'll try reposting.

[Matthew Bennett]

Maybe put it in Google Sheets then make it public so we can see it?

[Caleb Heimsoth]

Caleb Anderson great first name.

[Caleb Anderson]

Will do. Honestly, never used Google sheets in this way. Thank y'all for being patient. 

[Caleb Anderson]

https://docs.google.com/spreadsheets/d/1gRgb3j_Rf642kALiOkYSWvOwQOG-4TaAjk4BaRP8TRQ

Ok, I think that one should work. If not then I’ll just try again some other time.

@Caleb Heimsoth right on, gotta represent.

[Caleb Heimsoth]

@Caleb Anderson doesn’t look too bad if your expenses are right.  What interest rate are you using for financing? What percent are you putting down?  What’s the cash on cash return?

Did you get actual quotes/look up for taxes, insurance? 

[Caleb Anderson]

@Caleb Heimsoth​​ Expenses should be on point if not gracious. 5.5%. 25% down. CoC is still something I’m calculating because of how I and my partner are doing this.
Actual numbers. I am closing on this in early August. I am pretty confident about this one, just wanted to get y’all’s opinion.

[Caleb Heimsoth]

@Caleb Anderson if you’re getting it st that price and your hard expenses (taxes, insurance etc) are exact id do it.

Financing looks Accurate. I’m under contract for my newest one at 5.625 percent.  

I don’t recall seeing property management expense? Js rhat in there? Should be even if you self manage to start 

[Caleb Anderson]

@Caleb Heimsoth Ok, cool. Thanks.

I have it accounted for, but I am managing it myself and it would still cash flow over $100 a/mo if I decided to get a MGMT company.

[Dave Lawrence]

Hi Caleb,

Good for you! Nice job being conservative on your maint and CAPEX numbers. Hopefully you won't have anything pop up after your $8K freshening.

One question: how confident are you in getting that kind of rent? I know nothing about the area, but when I did a hotpads search, it seems like your rent projections are towards the outer limits. I saw on hotpads where a 4/2 at 260 Churchill Way Mcdonough, GA 30252 leased last sept for $1200/mo? May be inaccurate, but... I searched your zip code, filtered 3/2s, price range $1250-1600, then sorted by most popular. Most of the top homes that came up were sub-$1400, except this one: 4115 Springvale Way Mcdonough, GA 30252. No garage, but has pool, clubhouse, tennis courts, etc. It has a 50%-plus contact rate, which I've (anecdotally) found often indicates it'll be rented in 2 weeks or less.

I think you're right to shoot high initially, but "Semper Gumby," especially with the start of the school year bearing down. If you get few/no nibbles after 10 days or so at $1450, I'd immediately drop to $1395 and see what happens. Good luck! 

[Caleb Anderson]

Thanks Dave! I do believe that's on the high end, and my agent has experience with other rental investors and she says that not an unreasonable rent rate- as long as I get the house looking good! But the 1390 is a good idea, thanks.