All Forum Posts by: Bret Blackburn

Logan Hassinger Thanks for responding That's not how I estimated capex, I was estimating based on a % of rental income. I know it's not very accurate. The unit is in NRH and I can't get close to a $140k purchase price. I haven't seen deals that generate $2200 rent in DFW that would only costs $140k. I must not be looking in the right areas.

Both units are currently rented through December 2017 @ $1150/per side

I did find out that both breaker boxes were replaced last year and both A/C units had repairs/service done last year as well

I'm looking on a little feedback for this Duplex I'm considering.  It's right in the middle of metro area, close to airports, highways, community colleges, etc.  The duplex consist of 2  2 bdr/2bth,2 car garage units with split bedrooms. The same owner has had it for 20+ years.  The units could use flooring, countertop, and paint updating, but it isn't necessarily needed.  The duplexes in the area are in similar shape and the avg DOM for rentals is 7-14 days.

Roof is 3 years old

Appliances less than 2 years old, expect for 1 stove.

I need to double check on water heaters and HVAC

Sprinkler System

Nice sized fenced backyards

Both sides are leased through 12/2017

Yearly #'s

Mort - $9948

Rents - $26220 (w/5% vacancy)

Taxes -$5100

Ins $1600

Mgmt(i plan on self managing) $2208

Repairs-$1380(5% of gross rent)

CapEx - $1380(5% of gross rent)

Leaves me with about $371/mo of cashflow or $4450 yearly.  It's a 8% of initial investment(i shoot for at least 10%).  With the Property Mgmt removed the #'s change to 12% and $6660 of yearly cashflow.

That is one thing that concerned me with the repairs needed. I was going to use the option period to work the price down after the inspection if needed

I will be managing myself, but added in Mgmt cost anyhow

So this could be my 3rd rental property purchase, but first since joining BP.  I'm may be going through a little Analysis Paralysis.  The previous owner said he had tenants paying $1195/mo. I've requested any proof of that. In the meantime, I'm using $1100 for rent. I'm curious what you guys think.  The home is older and needs some TLC and some foundation work.  I have not received the estimate for that yet.  My 2 previous buys were newer homes, so this is new to me 

Andrew Postell thank you for all of the information. It's a fixed-rate five-year fully amortized loan. The property is not an expensive property

I let her know that I'd let her go M2M for an extra month, through May. She sounds like she may end up signing a year extension. She's been a great tenant and I'd love to have her back for another year

I have a tenant whose 18 mo lease expires at the end of April. She has asked about month-to-month due to her pending divorce taking longer than expected, but doesn't know how long she will need to stay. We originally set up the lease as 18 months so that I wouldn't get stuck with an empty house during the slow time of the year. I don't really want her to go M2M through the summer and then I'm back looking for new tenants in the fall. What does BP think?