All Forum Posts by: Aaron Lancaster

@Michael Ward@Michael Ward, I'm not planning to live it it, so it would strictly be an investment. The units are 2 BR / 1.5 BA, and yes It is in Fayetteville. I'll send you a PM shortly. I'd love to talk about the details because I honestly don't know whether my numbers are too conservative or just right.

I'm stuck in analysis peralisys and am trying to figure out if this is a good deal. I'm hoping some more experienced investors can give their feedback. Here are the details on the property:

Type: duplex (off market)

Price: $250,000

Down payment: 25%

Interest rate: 3.45%

Year built: 1995

Rent: $995 per unit (both are currently rented with a long term tenant of 4 yrs on one side)

Tax amount: $1,885

Insurance quote: $1,387

Condition: good (no renovations or make-ready costs necessary)

Location: Northwest Arkansas,  good location only 6 minutes from a university

This is a fast growing market and properties seem expensive here, but I'd really like to find a deal here since it's near where I live. Any thoughts on this deal would be much appreciated! 

I'm a huge proponent of asset allocation and diversification, and I was just wondering if anyone has ever read about Harry Browne's Permanent Portfolio which splits investments equally between stocks, cash, long-term treasuries, and gold. Each one of those asset classes is tied to a phase of the economy (prosperity, recession, deflation, and inflation), and the idea behind the portfolio is that at least one of those categories will be performing well at any given time regardless of what's happening in the economy. I specifically bring this up because it is one of the most conservative portfolios out there, and I think it could be used as a holding place to park your money while you're saving up for your next real estate deal? Does anyone else think like this? I definitely don't want to concentrate my bets in just one of those asset classes while I'm saving up for my next deal because it's possible that my account would be down significantly around the same time that real estate prices look attractive. Does anyone have any other thoughts on how to invest your money while saving up?

I have a high deductible ($10k) on my SFH rental, so I like to base my cash reserves on that plus 6 months expenses. So to keep it simple, if I have a $10k deductible and I rent the house for $1k, 50% of my monthly rent goes toward expenses so I'd save $10k + $3k for a total of $13k.

I have a single family home that used to be my primary residence and about 3 years ago, I moved out and have been renting it out ever since. I've learned a lot about real estate investing since then and am now questioning whether or not it is worthing keeping.

It appraised at $119,000 and I was able to purchase it for $114,000. I own it free and clear and it's been renting for $975 a month ever since. I do have a property manager that charges me 50% of the tenants' first month rent as well as 10% of monthly rent. When I attempt to calculate my cap rate, I'm coming up with a really low number, and since I tend to be overly conservative with my projections, I'm wondering what other landlords think of this property. 

Thanks in advance for thoughts and opinions! I'm open to any and all feedback.

P.S. The address of the property in question is 3070 S Overhill Ct, Springfield, MO 65807

List of repairs needed and estimated cost:

Hello, I'm relatively new to investing in rental property and have a potential prospect that' I'm under contract for. I am at the end of my due diligence timeframe and have to make a decision by the end of the day or early tomorrow. Here's the link to the property in question: 810 S Nettleton Ave, Springfield, MO 65806

The seller has agreed to sell it for $75,000.

The property is currently rented for $520 (unit A) and $420 (unit B) needs about $13,000 in upfront costs to  fix up. Once the units become vacant, I'll need to put in about $10,000 more, so I'm looking at about $23,000 in total rehab costs.

If I ran my numbers currectly, I think that if I were to raise the unit B's rent up to $520 then it would be grossing $1,040 after all the rehabbing is done. Does this sound like a good deal? Any advice would be MUCH appreciated!