All Forum Posts by: William Collins

So, looking at deal #2 - Quad in the same town

Purchase price: $120000
FMV: 139900

Gross rents: $2780 per month.

Principal + Interest: -$482 (20% down. 30 year fixed loan at 4.5%)

Expenses
Taxes: -$456
Insurance: -$150
Prop Management (@10%): -$278
Vacancy (@10%): -$278
Repairs (@10%): -$278
Water: -$300
Total: -$1740

NOI: $2780- 1740 = $1040

Cash Flow: $1040- $482 = $588 per month or $140 a door

This is a class B neighborhood.

I bumped the vacancy assumption up from my last take. This is based off a real property in my target area.

Thank you Scott W. for your "run don't walk"- I was trying to run through an example to see if it made sense. The PM was mentioned in http://www.biggerpockets.com/forums/88/topics/86480-analysis-on-fourplex

and I assumed it was preventive maintenance.

Sam W. New Britain is a referred to as "hard hitting" for a reason. It is a viable market, but definitely a different class.

George Ghiorse that you I will focus on trying to get 20-40% ROI. The house itself I think could be bought as low as $140,000. That would influence the deal quite a bit.

Pardon I should have mentioned- this is a tri-plex.

Ok, so this is my first analysis, so bear with me. If this should have been in the Starting forum, I apologize

Purchase price: $170,000

Gross rents: $2170 per month.

Principal + Interest: -$689. (20% down. 30 year fixed loan at 4.5%)

Expenses
Taxes: -$421
Insurance: -$125
PM (@10%): -$217
Vacancy (@8%): -$174
Repairs (@10%): -$217
Water: -$250
Total: -$1404

NOI: $2170- 1404 = $766

Cash Flow: $766- $689 = $77 per month

This is a class B neighborhood.

So my thoughts are if sale price was @ 160,000- this deal would be a definite yes- but as it stands it has very little wiggle room.

Thanks Joshua Dorkin for the welcome. Thank you Raymond B. CT REIA definitely looked like a meeting I will be checking out sometime in the 2nd half of the year. Right now I am focusing on my brewery which will be launching in June in Bristol. REI is the next step beyond that.

Thanks Raymond B. , glad to be here. Do you participate in any clubs or associations?

Thank you Brandon Turner for the welcome. I have started lining up my reading, and Larry Loftis is now on reserve for me at the library!

Howdy Kelly,

I am focusing on buy and hold strategy for cash flowing duplex/tri/quad's. Right now my entrepreneurial streak led me to opening a couple of business's (on top of my full time job), and so I really was inspired after listening to Arthur Garcia's podcast. This is the time period for me to learn up in preparation for jumping in at the end of the year!

Bill

Howdy folks, a new investor learning from your collective wisdom here!

Bill