All Forum Posts by: Daniel Hanson

@Brad Jordan Are the leases at a market rate for your area?

How much are property taxes?

Would you self-manage or hire a property manager?

How much for the water bill/ other city fees that you would probably owe as the owner?

Do you have any instant equity in the property (i.e. is the Market Value higher than $160k?)

Is the 1% rule generally profitable for investors in your area?

What is your target cashflow per month?  Does this property meet your target?

What would be your exit strategy on the property?

I don't need to know the answers to these questions, but you should as you do your cashflow analysis.

No problem, George.

@Dan Cho - just to make sure I understand, if you put the 30% down (172.5k) from your HELOC, the seller will finance the remaining balance of 402.5k? If so, do you need any other loan source currently? Or are you looking to the future when you have to pay the balloon payment to the seller?

@George Kountoupis - if you hover your mouse over their name in a post, you will see a box appear.  In the bottom part of that box it says "Connect".  Click on that, include a short message and you have just sent a collegue request!

@Soh Tanaka - I'd be interested in looking at your spreadsheet and giving you some feedback.  If you PM me I can give my email address.

Hi @Thomas Henry this may vary for different people depending on their risk tolerance and urgency. 

When I started in real estate we had a family emergency fund (6 months of expenses) and general savings fund for things like car purchase.  We kept that separate from any investment funding.  The investment funding for my first property (a foreclosure that needed rehab and then became our rental) was 75% bank loan (30 year), 25% 401k loan (5 yr), and 10% loan from extended family (2 yr).

110% of purchase price when adding up all the loans -that went toward covering the rehab and 6 months of expected property expenses to keep in the bank.

Of course today, with a little more experience, I wouldn't recommend borrowing 100% of the downpayment and rehab with such short amortizations for a rental, I'd probably only do that for a flip where you would get your money back with profit quickly.  That pretty much ate all the cashflow on that property until the 401k loan was paid off.  And killing the cashflow is a huge risk if you suddenly have a vacancy or major unexpected repair.  You would be digging into your own pocket to cover expenses.

We can figure that out later- now that we've sorted through the cultural correctness of it all...

Thanks Rebecca- finally had a chance to sit down and look at your link.  I had actually set up the same thing using a Google alert from the Craigslist ad to email me, but I wonder if the IFTTT might be faster to notify.  Will have to do some testing.  In the meantime, thanks for the new tool.  Much appreciated!

@Stephen Schoon Can I buy you a beer ??

Cool, Rebecca!  I'll take a look at that when I'm off my phone.     I have done some interesting stuff with IFTTT in the past but not yet hooked it up to Craigslist.  Thank you.