All Forum Posts by: Kevin Bieber

Hey Guys-

Wanted to solicit some advice if possible on the phoenix area townhouse i am looking to purchase.  I have run through the numbers and i will be cashflowing on the property for the purchase prices we have agreed to ($81,500 at about $900 per month in rent).

I have walked through the complex and spoken to neighbors who all seemed happy with the townhouse community (one even said it was his favorite place).  But upon doing a crime search of the area on trulia, I see about 4 assaults in the last month.  All of them are outside the townhouse complex, but it's a little concerning to me.

Any advice on this?  Any way to check an area and see if crime has gotten worse or better in past years?  Really want to cover all bases if possible.  

Thanks,

Kevin

Thanks for the info guys, still leaning toward getting rid and going with a cashflowing property. Plan to keep this in mind!

Hey guys-

I have been running some numbers on my current house to help decide whether I want to move out into a fix and flip while renting my current house or if i want to sell the house and move into a fix and flip.

It's currently located in Tempe, Arziona about 2 miles away from ASU.

Here are the numbers (used the excel spreadsheet at the top of this forum- Great resource!)

House value: $204,000

Mortgage: $187,000

Effective Rent Income: $16,530 (5% vacancy)

Operating Expenses: $5,350

NOI: $11,180

Cash Flow: $-1,924

Cap Rate: 5%

After running the numbers above, I will have a negative cash flow of roughly $1924 which is a huge red flag for me (though i was conservative with repairs and vacancy numbers). The only thing that i could think would cause me to stay, is the house value appreciating in the next few years. It seems things have been rising somewhat quickly in the last year. I am thinking even if i had a loss of $1924 and the house value went up 5%, I would have a gain of $10,200 (.05*204,000+204,000). After the negative cash flow i have actually made $8276 for the year. So i invested 1924 (assuming no major problems) and receive a return of $8600 on it if the market continues to rise. One other key item is that i have a full time job and if needed i could pay the extra expenses.

Even all that being said, my gut is telling me I'd be much better off with a house that cash flows. In addition if i were to sell this and buy in the next few months, I would see similar appreciation in my next house and hopefully get a better initial deal.

Any other feedback is appreciated. This is my first time running through this so i am sure i am missing something.

^Good deal -- look forward to checking it out!

Thanks guys

@Jerry W. Have been reading it for the past half hour or so (read some of your other posts). So far it seems like there is some pretty good information in there!

Hey guys, my name is Kevin and I'm 27 years old. I have been interested in real estate for about 2 years now and just recently found this site. I have already listened to a few of the podcasts and am really excited their is a resource out there with so many experienced investors.

All that being said, I currently work in IT and want to find another source of income. Currently I am looking at moving into and rehabing a house, or possibly renting a furnished condo on VRBO. Yep they are fairly different, but I look forward to reading more about these types of investments here!

I will likely be putting up some more specific questions in the various forums, but figured I would introduce myself first. Also I plan to attend AZREIA next month. Anyone have any experience with them?