All Forum Posts by: Brian O'Connor

Todd,

I'm running these numbers you gave us in my own model. I'm including the assumptions that you input into the rental property calculator as well (but excluding the property management cost) and coming up with $-60 in monthly cash flow and $409 in monthly NOI.

Including your debt service and using your estimates, your breakeven price point for this property is $95,000. However, I agree with Kevin that your estimates for CapEx is too low given that you may need to repair/replace the roof and furnace (but I don't know vacancy rates for your area). I raised CapEx to 10% but left R&M and Vacancies at 7%. With this adjustment your new breakeven point is $86,000.

Personally I wouldn't go in on this deal. It depends on your strategy and I'm a buy and hold investor so I'd like a minimum of $100 a month in cash flow, and to do that the purchase price would need to be $63,000.

PM me if you want me to run any other situations for you.

Hello, I'm originally from Boston and moved to Stamford in February. I have always been fascinated by the idea of passive income, and a few months ago a friend suggested that Real Estate is a great avenue to generate passive income. My goal is to earn $50k in passive income in 5 years by purchasing multi-families.

I'm excited to meet other investors in a similar situation as well as experienced investors who can give me guidance.