All Forum Posts by: Austin Youmans

@Katie Huynh That is the initial repairs bus you will have on going repairs like a toilet leaking etc. I generally use 5% of rent to cover this. 

Cap-ex is short for capital expenditures which is bigger things that will need to be replaced over time like the roof, furnace, appliances. You want to save a little each month for this so it isn't coming out of your pocket. Generally 10%.

Vancouver is not much better. Less expensive but not as much rent either. Good buys go quickly so you want to be ready to put in an offer the minute that something comes up.

I don't see repairs and cap-ex in your report and that would kill all of your cashflow.

The ROI number is prefrence but you have to look at what else you can do like the stock market on average has made 8% which is less work than rentals so if you can't get better than that you could just put it in the stock market.

That being said Portland is a hot market, although tapering off, but still hard to find a good deal. 

Hi @Daniel Vasilyuk, I am a investor/realtor in the the Vancouver market. 

You should definitely look into house hacking a 2 to 4 unit place. 

I did this with a FHA 203k loan which is a rehab loan with FHA financing. Some of the rehab things have to be done by contractors so you wont be able to do it all yourself but is a great way to go to jump in the game.
Keep your eye on the market every day as good deals move quickly and get bid up. 

PM me if I can help you out at all.

Welcome @Jack McTavish, Are you still in the flipping business?

By my estimates, with some assumptions and just analyzing as a rental non-owner occupied you would have negative cash flow of about $500 per month. If you lived in one of the units you would add that onto the negative cash flow. So if you lived in one of the cheaper units you would be out $1650 per month. 

Can you add value somehow? The PMI is a killer and probably about $350 a month so if you can add value and refi to get rid of it that could help but not a great deal as far as I can tell.

This is a hard market and doing an FHA loan doesn't help you cash flow stance.

Welcome @Dmitriy Bak

If you have any questions or find some wholesale deals let me know. 

Hi @Steven Mak,

I am a investor/agent in vancouver. I would suggest to keep learning everything you can in the RE world to stay motivated. That is pretty cool that you get to have first hand knowledge of distressed properties on your route. Let me know if happen to come acrossed anything in vancouver or need help with anything.

Hey @Mikaela Hall,

Have you heard back from the county?

Interested to see what you find out

I used trainagents.com but I am sure most of them are the same. 

@Travis Nebeker, I did not have my license for my first deal that I think that may be the way I would recommend it so you can see the process without being the one responsible for your first go around. 

On the flip side it does help as you can go vet a property whenever you want without lining it up with a third party plus most the properties I have bought have been vacant which makes it even easier. You can also apply your commission to your down payment so that is useful. 

All that being said, If you find the right deal I would not wait as good deals are hard to come by in our area and this would just be a cherry on top but doesn't make a bad deal a good one.