All Forum Posts by: Brian Cheng

Thank you @Frank Jiang I am trying to do the numbers as "worst case scenario" I think this calculator is like you said there must be some algorithm that's not calculating right, because even if i took off the "property tax" completely, the CoC comes out to be only 1.1% which is completely jacked. I think i will try a different calculator and see if the numbers make more sense. The property tax i wasn't too sure about, i pretty much just looked on realtor.com under that listing page and used the most recent annual tax. yea, the rent is atrocious comparing to the ARV (again, everything's hypothetical and for practice purpose only, i just took the sale price and put it as the ARV because the house looks like it's be rehabbed already.)

@Jay Hinrichs Thank you for your input, I am just trying to get comfortable calculating the numbers, and obviously being the beginner that i am ,i would like to utilize every tool possible to help me understand, as i get more experienced at running numbers i believe i can start to do it without the help of the calculator. 

Hello, thank you for the response. I am not sure what you mean by "never under" you meant underestimate any cost? I was simply playing around the numbers to see what sale price would get me an ideal CoC return. but when you see the analysis, it's saying i have a -19% return even if i bought a property for 150k , with ARV 24000, and requires no rehab ..

So I am practicing analyzing deals just using a local home i found on realtor.com. Because I've used up the free trials of the BP calculator, I decided to just use another calculator to practice in the meantime. I ended up using free zilcalculator and basically put in the same numbers as i would if i was using BPcalculator. But when the analysis came out, basically i got a super huge negative CoC return which didn't really make any sense. I even lowered the buy price by a whopping 80k and the cash flow still ends up negative... I've attached the Zilcalculator hypothetical analysis for review. Can anyone tell me if I screwed up on entering the number some where? Thank you!

Thank you for the great advice! Any specific areas in houston market in your opinion would be a good place to look into? i travel quite often for work, and due to the nature of my work i don't have to be in any specific part of town. C

loser to Houston city would  be better but not for work purposes but rather just my personal preference. the neighborhoods i mentioned i am looking into are based on the school districts. I would like to invest in a property in a decent and safe area so it will rent quick once i move.

Thank you for the response  

@Sarah M.

would you say to run the numbers as if i was going to rent it outright? 

So i have recently gotten pre-qualified for a mortgage as i am looking into dipping my toes in the REI. I am looking for SFH as there's currently not any good multis that are available in the area im looking for in Houston, TX.(Greater heights, Missouri city, sugarland, spring, etc) I want to know if i want to simply buy the house for myself as a primary residence, which then eventually rent out once i move out in however many years. When it comes to analyzing deals, do i treat myself as the "tenant" and factor in my mortgage as rent to calculate deals?