All Forum Posts by: Ashley McGrath

@Jon H. @Jaysen Medhurst This is a 5 year plan for this property. I live two houses away so I am not factoring snow removal or management because I know for 5 years I won't need this. In 5 years my personal loan will be gone so I will have an additional $200 a month which will cover these expenses and still allow me to cashflow. 

CapEx in my calculations was what I listed as "Maintenance 7%" the day to day things such as light bulbs etc fall under Misc 5%.

Tenants pay all utilities except water/sewer. Again I already know how much this will cost as I live on this street and I have 3 adults in my household and 1 child. 

Brand new roof was just put in the house and part of my rehab costs will cover a brand new furnace. 

Hey BP people. About to get this under contract. I've ran the number a million ways but maybe there's something I'm not factoring in. 

I'm buying a single family 3 bedroom with a finished basement that was used as an illegal apartment. There are two bedrooms in the basement as well but I'm just calling it a "finished basement" as I'm not going to illegally rent a second apartment. 

Anyway, I'll have 4K total cash in on the deal. Purchasing house for 130k ARV is 160-165. Estimating 10k in rehab which I'm taking a personal loan for.

Together with the mortgage including taxes, insurance, and my rehab loan payment I'll be at $1,074 a month. I plan on renting for $1800. I did my math factoring 10% vacancy, 5% misc, 7% maintenance. Water/sewer is $45 a month and a $10 a month advertising budget. 

This gives me an NOI of $16,188. Cashflow of $3,300

84% ROI

CAP 12.45%

After 5 years when the rehab loan is paid I'll cashflow an additional $200 a month.

Is this too good to be true? Am I missing something? 

@Mark Murphy Have you defined your criteria? Specifically your numbers and area you wish to work in? Have you researched the market rents for that area? If you don't establish your criteria and commit to sticking to it before jumping in you're going to want to jump on every single thing that looks like a deal. Have you secured financing?

also might I add that there's a very good chance he'll give us a personal loan for 0% interest. As our agreement is valid until Jan 2018 so he was already comfortable with floating the $190,000 for that long. We're hoping to buy asap.

If you were in my exact situation what would you present to the buyer? I know he paid $190,000 for the house.

Hi Sherri, this post popped up as a similar post to a situation I'm currently in. I'm sure you guys have settled your situation by now, how did it turn out for you? What did you decide?

@Tim Johnson @Account ClosedHi Tim and Grerg. So after the wheels turning for a while and doing some more reading what if I did some seller financing on this deal? The current owner owns this house outright. So we can really set whatever price he wants with the bank. This is what I'm thinking....

Let's say we dropped the asking price down to $185,000. My husband and I put $10,000 down on a conventional loan. Making our borrowed amount $175,000. We then give the seller $8,000 cash in his hand after closing (remember he still wants $200,000 for the house). We also pay all closing costs. Then, we agree to pay a balloon payment in 18 months of another $8,000 plus 10%. 

With this deal we have automatic 20% equity in the house, we avoid PMI, and the owner gets the tax benefits of our cash payments. 18 months later when we're ready to invest in another property we cash out with a home equity loan and roll his $8,000+10% into that loan.

To me this seems mutually beneficial for both parties. 

Good advice. I wasn't aware that I could use the calculator without a pro membership. I certainly hope no one would scoop this up but if they did I was just chalk it up to lesson learned. I am still getting to know my way around this site as well as the world of REI

Hello everyone, I am potentially looking at partnering with my brother on this property. Our two options would be to have myself and my husband owner occupy or we may go the straight rental route. Would someone mind running the numbers on this for me? This would be our very first deal.

http://www.trulia.com/property/3223609909-20-Henry-Harris-St-Chicopee-MA-01013

I am looking at mainly multi-family, buy and hold. I have a wealth of contractors and tradesmen as my Dad, brother, and husband all have contractor backgrounds. 

But what I'm looking for is how to get to know this local market. How to build relationships with local people. Did you seek out networking events? Talk to people at city hall? I want to learn who the players are in my area and get to know them.