All Forum Posts by: Bob Asad

Your taxes will 100% shoot up. Mine went from $11k to $22k in one year after I bought a property. Also make sure you have a great property insurance company to give you quotes. Insurance has doubled, mine included. If your buying a building that’s $500k, you need to be getting at least $5k a month if not more or it’s not worth looking at in my opinion unless there is some other revenue source (ability to add bedrooms or units, air bnb) or you can increase rents substantially. BP has calculators you can run numbers with.

Not sure what type of properties you've bought that have gone up that much in taxes. I've bought a few SFH and in Florida and they only up several hundred (a thousand max) in a year.

Also, I don't think there's any way for a SFH or Duplex to make $5k per month cash flow, so are you referring to 8+ unit apartments?

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Quote from @George Craciun:

Like Matthew said, you need to have specific goals.

Where did you get the mortgage at $2800?

At 8% interest rate with 20% down payment only the PI would be around $2900.

I noticed that many investors that don't know the South Florida market ran their numbers based on the current property taxes and insurance.

The property taxes are being reassessed yearly and probably you will only get the new taxable value 12 to 18 months after the purchase.

For instance a property that I purchased in May 2023, was homestead and the property taxes were around $3500. Next year, I expect the the tax bill to be around $15000 as it is an investment property.

I didn't see too many people talking about this topic in Florida.

I don't think the property taxes would jump that high in one year because it's an investment. Aren't the taxes for investments treated similarly as primary? (Even with homestead) You can also write off the depreciation for the investment.

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Quote from @Eugenio G.:

FHA loans are generally assumable. Talk to your agent and loan officer.

Do you know if assumable loans have prepayment penalties or balloon payments when they transfer? (Are the rules whatever is being assumed from the original buyer?)

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Quote from @Elias Halvorson:

You can assume any government loan as long as you meet the requirements. For VA loans, I think I can speak for almost all of us in stating no veteran is likely going to let you assume the loan unless you also are a veteran and can use your VA loan entitlement. The VA loan benefit is one of the biggest perks of being a Veteran.

What if it's FHA or Conventional, are these assumable?

Also not sure how it would work as an investment, do you have to live in the property?

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Can you assume a mortgage on a conventional or FHA loan?

For example, the house is listed for $500k and it has $300k in mortgage left at 3%

Could I offer $500k and "assume" the mortgage of the seller?

So in conclusion, it would be financed as a conventional with 20% down ($100k), and out of the $400k, $300k will be at 3% and the remaining $100k will be at the current mortgage rate?

Does anyone know how it works and best practices?

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Any calculator or rental calculations that you recommend for Duplex or SFH to analyze if they're worthy of buying for positive cash flow?

For example, there's a 1950 duplex for sale (West Palm Beach, FL) for $500k with each tenant (MoM) paying $1,500 = $3k/mo

The mortgage is $2.8k/mo

Would this be a bad investment because you would have to factor improvements and possible vacancy?

If so, what would you recommend would have made this deal better as an investment?

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Anyone having major success with only buying SFH and renting them out to tenants to make good cash flow each month and re-investing?

Also, if you increase the rent each year, does this mean you can get a higher cash refinance?

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Looking to finance a 2-4 multifamily property to purchase near West Palm Beach, FL (or within a 30-45 min drive).

Been looking on MLS, Crexi, Loopnet, etc. but either the properties aren't good (too expensive) or the people don't respond.

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I'm thinking of signing up for Pro (mostly for tools / calculators) and also checking out other rental calculators online. Which type of calculator do you use the most here or elsewhere?

I'm looking mostly for if I buy a 4-unit quadplex (example, or Triplex), how to calculate NOI, Monthly Cash Flow, Rehab, Cap Rate, Cash-on-Cash, etc.

For example, whenever I find a property on Crexi, Loopnet, MLS, etc. the NOI sounds good but when you factor in mortgage to get the cash flow, it's almost always negative.

I also don't know how to properly calculate a rehab to see ARV so that may be the other issue.

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All Forum Posts by: Bob Asad

Bob Asad has started 32 posts and replied 59 times.

Post: How Can You Assume a Mortgage for Conventional Loan?

Post: How to Calculate if Duplex or SFH Has Positive Cash Flow?

Post: How to Calculate if Duplex or SFH Has Positive Cash Flow?

Post: How Can You Assume Mortgage When Buying a Property?

Post: How Can You Assume Mortgage When Buying a Property?

Post: How Can You Assume Mortgage When Buying a Property?

Post: How to Calculate if Duplex or SFH Has Positive Cash Flow?

Post: Anyone Creating (or Created) a Real Estate Portfolio with SFH?

Post: Any 2-4 MultiFamily Properties to Purchase Near West Palm Beach FL?

Post: Which Bigger Pockets Tool or Calculator Do You Use the Most?