All Forum Posts by: Austin S.

I'm looking but new to multifamily

36 - 9 residential and 1 commercial :)

Thanks for the responses, 2% was the high end and those deals are hard to find now days. Most stuff i can get in the 1.65 to 1.8 area. SFR in southwest missouri (springfield/branson).

Hello, so i have several SFR and have used a really simple formula for buying them, those are the 1.5-2% rule where the monthly rent has to be 1.5 to 2% of the purchase for it to pass muster. All of those are profitable.

I am looking to get into vacation rentals and have not found a formula that works like this.  Does anyone have any resources they would recommend that would assist in seeing if vacation rentals pass as a good investment?

I had thought about this but a mentor advised against it a few years ago.  I haven't yet and has not impacted occupancy.

So sorry to hear.   Hope that things will turn for the better.

I have a similar property.

Was one that I bought to live in then rented it out after about 4 years.

Baught for 82500 
Mortgage is 667 on 15 year note with 2.85%
Rent for 900

Really low margin on it, it is in a higher appreciation area with good renters.

Overall, I'm happy I have it bc it will be completely paid for by renters.

@Aaron Gordy 

I think that is average for this area where the houses are relatively cheap and we can still rent for between 5-600/month.  It's an interesting market b/c further south houses are 2-3 times that and only rent for an extra 100-200/month.

The cost for us is only 1/2 of first month and we have stipulation in lease that they lose first 250, normally that will cover but sounds like i should take that into more consideration.

Have not had to do evictions yet (1 property 10 years, and 3 others for around 1 year), do you factor that into your costs as well?

@John Leavelle

Thanks for the response!

I had the capex figured in with repair maintentance and had that at 10% overall.   If i boost that up to 16% i get these numbers

And for the profit section

Hello, have my first opportunity to buy 6 properties from an investor.

Bottom Line: 216k for 3350/month in rent.  

I posted the full analysis below and these numbers seem like they would work, my worry is this is a bigger deal for me, i currently have 4 rentals.  A few of the houses are rough and will need roofs over the next few years and some are pretty old as well (built in 1920/1900). None are in good school districts/good areas.

The investor is getting out due to a move. I have purchased 2 of his properties previously and they have cashflowed really well.

Any thoughts?