All Forum Posts by: Brandon Duff

I live in California, and looking at maybe getting into a 55+ community since it's cheaper than regular housing. Morgage would be around $700-800 Rent would be $1100-130 4% interest Tax $1566 for 2014 HOA $200 Water and sewer is paid ( by the community?) Good idea?

Welcome to BP! Its a great community and I am learning a lot! 

thanks for all this information.. How do find the expenses and rent of each property? Do you just call the seller  on say realtor.com or trulia.com etc? @Nathan Emmert 

@Bill Jacobsen 

Thanks Dave, 

Great post.. I need to do a lot more research.. I thought I knew a little but this goes to show me, I am barely on the tip of the iceberg... 

Practice makes perfect 

Property is $179,000 for a 5 Bedroom Multi-Family home. 

They said the total income is $2075 for rents ( Based on a site) 

$2075 * 50% Rule = $1037.5 

20% of 179,000 is 143,200 @ 4% interest Rate makes the Mortgage $683.33

( No PMI or Property Tax because thats part of the 50% correct?)

Cashflow = $1037.5 - Mortgage

$1037.5 - 683.33 = $354.17 Cashflow

( Brandon in his 50% Video he said he likes $100 - $200 per Rental so that doesn't seem that great which is $70 per Bedroom)

CoC ROI

CashFlow * Annual /Investment = CoC

$4250 / (  20 % Downpayment + Rehab) 

How do I find rehab needed without visiting a unit or Estimate ( Unit is out of state)

Lets say it needs $10,000 of Rehab

$4250 / $45800 = 9% CoC Return

Which is just below Stock Market.. 

BUT Brandon also said that you should ALWAYS ask for 20% below Listing Value 

Lets redo the Numbers.

Property is $143,200 

Rents $2075

New Mortgage $546.93

$1037 - $546 = $491.5 

Cashflow  = $491.5 

Closer to 100$ per Unit.

Annual Cash flow $5,898 / Investment ( Downpayment + Rehab 10,000 ) $38,640

CoC Return 15%

Very good Return..

Biggest Concerns : 

How do I find out what Rents really should be?

How do I figure out what Rehab should before I hire inspector to figure out if its even worth my time to consider a property. 

Are my Calculations correct? 

My biggest concerns are the first few steps of researching a property before you buy it.

When you have been investing/real estate for awhile you don't go on the MLS but have more innovative strategies to inquire about properties like ie: searching for vacant homes, looking up home address of the owner in public records and contacting to make cash deal, or a network of teams doing the footwork for you

Someone starting out like myself will have to go on sites like realtor.comzillow.com or trulia.com. ( I'm not a realtor so no MLS access)

Click various properties and use the 50% rule to make quick assumptions if the property is worth looking at.

Ie:

(Gross income * 0.5 ) - morgage = cash flow

How do I know the gross income.. I know sites like realtor.com lists them but obviously they can fib with the numbers to make it look more appealing.

So then it comes down to knowing my market..

How do I do that and while being out of state which market is for me? There are thousands of cities:

Census data?

Google?

Dart board?

What type of numbers should I be looking for to determine its a good market.

Now going back to my 50% rule, I know my market and all that... ( I don't yet, just moving onto the next step)

Say I found 3 properties that have passed the 50% rule...

Is this when I start using better analysis spreadsheets to determine if it's something worthwhile? How do I estimate the rehab cost if I or "my team" haven't looked at it?

Wouldn't i need to know that to start calculating CoC ROI, etc?

I mean an inspector could be like $300 a property to look at.. If 3 are no good on ROI, I'm already. $1000 out of pocket.

Thank you!

Brandyn 

thank you for all the kind wishes everyone. I am doing lots of research and learning a lot. 

You can see my latest post of what I've been up to here. 

http://www.biggerpockets.com/forums/12/topics/171622-california-out-out-of-state-in

Hey Eric Fernwood ! Great info! I would love to talk to you more and get those interview questions.

Yes.. It all about building relationships and establishing credibility Dawn Anastasi Peggy Liu

Hello! I joined about 3 days ago and have been having a great time reading all sorts of blogs and podcasts. When I read one article, I end up clicking 5 more thinking to others. 28 year old and have my own fitness company . I want to start investing sooner than later Here is my introduction page Breaking into the Market from Irvine, Ca on the BiggerPockets forums http://www.biggerpockets.com/forums/55/topics/170924-breaking-into-the-market-from-irvine-ca I am enjoy learning all the terminology and have started the beginners guide to investments. I plan on doing buy and Hold properties. Would love to do multi family but obviously if you are having a high Cash on Cash ROI and Cash flow.. Then it's the same thing 10% on 1 properties of 100k is the same as 10% on 10x 10k properties right? I would love to buy in California due to being close to my first property and not having to hire someone to manage my properties but I guess when growth happens that is inevitable.. So being in or out of state shouldn't matter... Besides when it comes to taxes. I still have a bunch to read and still want to do the math behind investments. Still don't understand how people get numbers on expenses since seller can fib with the numbers, taxes etc and how you calculate the rehab on properties without visiting each one. 50% rule? How to choose an out of state market? I was looking maybe even in California in like riverside county. Anyways... I will try and be active on these forums and learn as much as I can. Brandyn