All Forum Posts by: Jonathan Sher

Gaurav, I can see your point in getting in a good school district. But here's one thing. From my understanding, you don't have kids yet but plan on having them soon. So would the school district really come into play even in the next 5-6 years? Could you buy the house that's in a reasonable school district and cheaper or just continue to rent and then in 5-6 years when school district starts to matter, you could move then?

Hey Chris, looking in the document section of Biggerpockets. There are some good cash flow analysis excel spreadsheets on here.

Well this is a good exercise. It's good to be realistic with yourself and really see the numbers on paper.

Thanks Michael. I would say the current ratio is 60% owner occ/ 40% rental. It probably used to be 80/20 but with all the investors coming in, The ratio is changing. These are decent areas, I feel comfortable going to all these houses anytime of the day.

What about the utilities? Are you just factoring that the house will be out of commission for 4 months so you will rack up $2400 in utility bills? First that sounds like a lot, and also in year two, you hopefully will have the place occupied and that $2400 will not be coming out of your pocket.

Also 15% property management sounds about as good of a deal as getting kicked right in the groin.

Hey Michael. Id say the average annual property tax for these areas is around $1200 per house, But these need to be reassessed. I'm waiting for the county to come out with the new assessments and see if I need to appeal them. They should be around $700-800 per house if they adjust accordingly.

I'm fortunate to get some financing from some family members. I've also been talking to a local bank, and I have strong enough finances that I'm currently negotiating getting a 5% loan locked for 5-7 years.

Hey Nathan,

I would love two bath opportunities, but they are rare. I guess when all theses houses were built in the 50's-60's they were mostly just 1 bath houses. The difference between the two bath and one bath houses usually have an extra 400-500 sq ft in living space. This increases the purchase price fairly higher, making the 2% rule hard to make work, but if I feel it has a lot of appreciation opportunity, I'm willing to go a little under the 2% rule.

Hey Nathan, Thanks for the reply

House 1 is a 3b/1b I bought from a wholesaler Purchase price was $29,500 with $5,000 in repair costs. Rents for $817 a month

I could probably sell this house now for $45,000

House 2 is a 2b/1b I bought from a wholesaler Purchase price was $27,000 with about $6,000 in repair costs. Rents for $760 a month

I could probably sell this house now for $40,000

House 3 is a 2b/1b I bought from HUD for $36,000 with $2,000 in repair. Rents for $735 a month.

This house is closer to $50,000 That's why I paid a little more on this one, it doesn't make the 2% rule.

I'm putting about 20% down and borrowing the rest. I got some great private lending deals worked out.

Hello BP Fans! I've been dormant on here for a little but wanted to update everyone on my progress so far. I purchased my first rental property in July of last year. I now currently have 4 single family rentals (3 rented 1 under construction) and 2 more properties under contract. So far everything has been great. Tenants have been paying, and deals are being made! My ultimate goal is to have 20 properties.

One thing I have noticed is the competition is dramatically increasing. The home prices on foreclosures have been creeping up.

I want to thank everyone on here for all the great knowledge and experience. After reading this website for a long time, it finally made me confident to jump into the business!

Absolutely! This says it all, good thing they left on their own will.