All Forum Posts by: Brandon Barnes

 Thank you Maggie. I plan to handle the management myself. I did read or hear a podcast about planning for those fees regardless, but for now I plan to care for the property myself. More than likely along with my retired father. We're both pretty handy. 

Gotcha. Yes, this will be pure investment at 30 years. If it were to be at 4.85%, my cash flow would be $384.71 with a Cash on Cash ROI of 33.45%.

Hi @Elizabeth Colegrove, thanks for your response.

I plan to manage myself starting out. Or have my father help. 

4.85% seems really high. From my conversations with a few lenders in my area, I was told around 4%. Now, I don't have that in writing, but with my credit score and income, I was assuming a lower rating. Now I know what assumptions can do so I could be wrong.

Hi Everyone,

I'm going to check out a property here in Missouri tomorrow morning. It's a duplex in a C neighborhood. 

Asking Price is $69,000. I'll be asking for less but for analyzing, I'll stick with the $69k.

I'll put 20% down. Financing $55,200. Assuming 4% interest. 

It's currently renting at $1,000 gross. One side is section 8. The current lease is through Oct of 2016.

Taxes were $888 in 2014. I'm not sure what the insurance will be yet but I've put in a request from my agent. For now, I'll assume $1,200 a year.

I'll account for 10% monthly for vacancy and 5% for cap expenses. The property has a new roof, new floors, new HVAC, new water heaters and new windows. The seller is having health issues and is selling his properties. 

So to summarize:

Loan Amount: $55,200

Interest Rate: 4% (assumption)

Principal & Interest: $263.53

Taxes: $74/per month (2014)

Insurance: $100 (assumption)

Vacancy: $100

Cap Exp: $50

Total Expenses: $587.53

Total Rent: $1,000

Cash Flow: $412.47

Cash on Cash ROI: 35.87%

So what do you guys think? What else should I be considering? 

Thanks,

Brandon

@David Dodge Thank you! Glad to be here. Learning a lot. I've be listening to the podcasts and they've been a tremendous help. Columbia is a great market. I've thought quite a bit about college students, but not sure those homes are at my price points right now. I'm meeting with an investor on Monday that has a lot of college properties (LogHill guy) and a mortgage lender Wednesday. Are the purchase price ranges for your como rentals between $150 - $200k? I was also looking at St. Louis but the areas are involved in some non-favorable legislative disputes. 

Thanks Jon, I've actually got a meeting scheduled next week with a mortgage specialist.

Hello everyone,

What a fantastic community for learning. Thank you to any and all who take the time to help a new investor gain understanding. I've been looking at some property here in Columbia, Mo ($85k to $110k) to buy and hold. I currently have 10% ready but I will have to come up with another 10% if I want to move on them now. I can wait to raise the capital through my current job within 3-4 months if needed. I've also been looking in St. Louis at distressed properties ($10k and below) that I could pay cash for and fix up. My thoughts would be to fix up and section 8, or flip. I guess my limit on rehab investment would be $10k. Knowing that it could potentially be more. What should I be asking myself before making any decisions? Help me identify what it is I don't know.

Thank you!

Brandon

Thank you all for the warm welcome and advice. 

Thank you @James Wise