All Forum Posts by: Bruno Tavares

That clarifies a lot! Thank you @Kenneth Reimer, @Jeff B. and @Kevin Siedlecki.

Cash-on-Cash is great for analyzing a deal, but not so valuable for the ongoing operations.

This question came up because I'm a bit of a nerd for dashboards and I'm building one for tracking my rentals :)

There's a lot of material around analyzing and closing deals, but unfortunately not so much on metrics for post-closing and ongoing performance. 

For all the math geeks out there, here's a question on how to handle Capex in your Cash-on-Cash calculation.

• Bought a property for $150,000 already rented
• After 12 months I did a $6,000 renovation I knew going in I had to do. 

I could have done that from the get-go and bundle all up as my initial cash invested, but I waited 12 months and did the renovations later.

Now I'm trying to figure out the right math, and it gives me completely different results:

1. Consider the $6k renovations as an expense:

• Total Cash Invested: $35,000
• Net Annual Income: $4,000 cashflows - $6,000 renovations = -$2,000
• Cash-on-Cash Return = Net Annual Income / Total Cash Invested = -5.7%

2. Consider the $6k as part of the initial investment, even though it happened 12 months later:

• Total Cash Invested: $35,000 + $6,000 renovations = $41,000
• Net Annual Income: $4,000 cashflows
• Cash-on-Cash Return = +9.7%

In one scenario I end with -5.7% and the other +9.7%, just by the way I move that $6k expense. 

I don't want to play the numbers and make a fool of myself, so I was wondering how you guys would handle this :)

Interesting to find this post! I'd love to hear your experience @Matt Winters. The HVAC on my rental property in Houston froze.

The condenser is from 2003 and the evaporator 2001. I was researching about and it seems to be very close to its life span of average 15 years.

I quoted 2 companies: $6200 and other $4600. Ouch! 

It involves new 3 ton 14 SEER condenser unit, 3 ton coil, outdoor pad and drain pan. One company quoted to replace refrigerant lines and other wants to re-use existent (main source of price difference)

Hi folks, just learned about homeunion.com through and ad on BP newsletter.

Their marketing page is very well designed, with explanatory video and all the stuff. I tried the platform too, and it's pretty cool as well.

This all helps but at the end is all about the properties, numbers and quality of property management.

Has anyone heard, used, invested with or have more info or thoughts about it?

Really nice @Huy N.  ! 

I like the break-down in Acquisition, Financing and etc... I've been involved with the same Acquisition company lately! 

I found your strategy to use your rental houses as collateral for a line of credit very cleaver. 

Was it hard to convince your lenders since you had no prior track of flips? Do you need to have a reasonable big portfolio of houses or do you think just 1 rental house would be enough to secure the financing?

Thanks for sharing @Joshua McGinnis ! I have a similar mindset: don't want to loose money and want to have a good experience (I'm a newbie).

Is amazing the amount of info you can get by setting up a "turn key" keyword alert on the forum :)

@Ali Boone / @Chris Clothier Thanks for expressing your thoughts on truth turn key investment. It gives me a lot of encouragement reading several of your posts.

@Deano Vulcano That's an interesting way to deal with contractors. From your experience do they easily agree in working a few days with no pay or are they reluctant?

Plus, have you ever had a situation where at the end of the week the work wasn't good and you had to dismiss them?

@J. Martin definitely invaluable. I'm a member of these ones close to me:

• More focused in executive rentals http://www.meetup.com/Bay-Area-Real-Estate-Buy-Hol...
• More focused on out-of-state http://www.meetup.com/svreig/

It so happens I'll be in the city for this new one, so it will be good! Looking forward for the next East Bay too.

@Johnson H. Count me in!

Congrats @John D. ! Where you able to conduct any due diligence? Check if title was clean, maybe get some info additional info from the neighbors on the state of the property? 

From what I've heard you need to buy sight unseen and as is, so I'm curious if you just factored any surprises in the price or had some other method.