All Forum Posts by: Aman A.

Everyone, thank you all for your valuable advice. I called off on our contract for this property. Numbers were slim, and I will continue looking for better deals. Thank you again!

@Joe Villeneuve Thank you. I was having the same thought that $100 works not be worth it. I have kind of a dumb question here- if I leave 15K in the deal and don't pull out everything, I make higher cash flow and CocROI is about 15%. But putting money in the deal just to increase cash flow also doesn't make sense to me. What am I thinking wrong here? I'm looking at these properties in Montgomery, AL where my expenses as lower mainly because of very low property taxes. But in decent neighborhoods the rents for 3/2 are in the range $775-$850. How do people make properties in these rent ranges work? After all expenses I'm hardly left with enough cash flow. I'm currently hitting the 1.3% - 1.4% rule. The only place where it comes closer to 2% rule where I'll cash flow better is in very poor neighborhoods.

@Samir Shahani thank you for your response. What would be the right amount of reserves for capex?

I have a property (3/2) under contract at $48,500. It's a foreclosure and it requires $13K of work. Market rent is roughly $800-$825. ARV is 80K - 85K. I would be able to pull out the purchase price + rehab cost out of the deal. According to my numbers I have 56% cash on cash return but only $87 in cash flow per month.

Purchase Price: $62000

Monthly Rent: $825

Expenses:

Property Taxes: $500 annual          $41.67 monthly

Insurance:           $874 annual         $72.83 monthly

Property Mng:    10%                        $82.5 monthly

Repairs reserve:  10%                       $82.5 monthly

Capex reserve: 10% $82.5 monthly

Vacancy                  5%                        $41.25 monthly

Total Expenses: $403.25

Mortgage: $334.77 ($60625 in principal at 5.25% at 30 year)

Cash flow: 825 - 362 - 334.77 = $86.98

How do I view this deal? Is this something I should take or not?

@Greg Parker - PMed you. Thanks!

Hello,

Any advice on a good property manager would be really helpful. Looking for someone who manages SFR properties in the $850 - $1200 rent range. Huge plus if they also help with project management for small rehabs.

I am travelling to Montgomery, AL next week and would love to meet with them.

Thank you!

Welcome Kevin. I am from Redmond too. I own a couple of rentals in the area and currently looking forward to cash flowing rentals out of king county.

YouTube.

The first video I watched was Brandon's on how to analyze numbers on rental property. Been hooked on all podcasts and so much other content since then.

I bought two deals here in the Greater Seattle Region. Both are townhomes and the rents are just enough to cover PITI + HOA dues. I personally took bought these as really long term buy and hold investments and I’m sure betting against appreciation on these. My hope is that these will work well in the coming 4-5 years as the rents go up. I have seen rents going up quite well, but they no way come closer to the increase in property prices. For my future investments I am now looking outside the region for some cash flowing properties so that I have a mix of both. I don’t really plan on buying in Seattle region in the next year or two at least.

Thank you @James Wise.

@Justin Cambra - You got that right. I do work at Microsoft. Thank you so much for mentioning the meet ups. I will definitely go to the one in Kirkland.