All Forum Posts by: Angela Marie Federico

Ok, This is going to be long and I don't know if ill explain it right but here goes nothing... So the target market for my strategy is transitional housing so essentially the home would be set up as each room has 2 or 3 people as roommates depending on the size of the rooms and pay a weekly rent.  I will reside at the property as to manage everyone and collect rent.  Everyone would pay a 150 deposit which is nonrefundable, and weekly rent is 180.  So I'm going to calculate all of these numbers using that format. In a 4br house lets say 10 people at full occupancy.  I said 3br before I meant 4 sorry about that 

10x180x4=7200

minus vacancy (which can be higher than just 5%) so say 35% to be conservative = 2520

=4680

minus mortgage, tax, ins (about 2300)

=2380 minus utilities =1500 (niaf)

asking price are all around the same amount within 2-3 thousand .. looking at 500k, 20k down loan amount 480... even with my math there is still profit but i feel like that's a big purchase for a first timer... let me know guys 

I'm looking at a few properties for my first investment..which I will be using bank financing for the mortgage when i decide on the right one... I've ran the analysis and they all look good with CAP rate a Cash on Cash return, but obviously I'm scared.. I live in Fort Lauderdale, FL and any property has a high price. Is a 3br single family too big to start? Or if the numbers make sense does it not matter?