All Forum Posts by: Bobby Weaver

@Charles McCabeYes! While the NOI in the linked overview I sent is based on the rough 50% gross income rule, I have done a full workup of the expenses which comes in just under (48%).

Thanks! I'd love to verify some of my numbers in someone else's model. I'll also check out that buy and hold calculator by BP. 

That financing could be inaccurate. That loan was mentioned in an email with myself and friend of mine who is a manager at a local credit union. 

Thanks for the help, Chaz! 

@Nancy L.Hello! It is really really great living over here, Nancy. Round trip tickets out of JFK to Bangkok are usually only $600-$700 and living very well over here for less than $1,000/m is extremely easy and possible. My wife and I will be in Thailand for roughly 4 months are our total expenses come in just shy of $700 per month. 

I have a more in-depth analysis sheet on that property which factors in all of the real costs on that specific property in detail.  It ironically came in right 48% of the Gross Income, so I just rounded up to 50% to add some padding and make it a clean number.  

Thanks for the tip about CL/Zillow and the re-rent and other fees :) 

@Mike O.Thanks for the warm welcome! 

Cool! Where are you overseas? I have also always been skeptical of the market in this region, too - I still am. When doing the numbers I assume a 12.5% vacancy, or a realistic 1.5 months per year of vacancy. I guess to be even more safe I could increase that number to 2 full months of the year being empty 16.6% - I don't know. The areas I am looking at are usually a little bit nicer and the apartments mostly two bedrooms, some factors which can help with keeping tenants. I do plan on managing the properties myself for the time being, so I haven't looked for any property management in this area yet. 

@Mike R.Oh, well I guess we can't be friends then. Kidding, the Mustard Seed is pretty great, too. 

That is true, $650 is a pretty hefty rent in Pottsville. Don't you normally see rents that high more South towards Orwigsburg? This property I am looking at is in the Mahantongo street area in Pottsville, which is a pretty nice area and I have regularly seen rents advertised that high. 

Sure, the bank was CACL in Pottsville. I am not 100% confident in those numbers, but I used to work (and am in a fantasy football league) with the manager there and just shot him an email asking for some general numbers. They are pretty friendly there! 

@Mike R.That's awesome! I used to live in Orwigsburg, right on the square. Maybe when I get back to the States we could meet up, I would love to get to know other investors in the area. 

Valenti's pizza is the best, isn't it? Nice to meet you! 

@Charles McCabeThanks for the response! I don't mean for me to have my box well defined, I just think it is the path that makes the most sense to go from cash in the bank to cash flow, you know? Also seems to be the easier and the one I understand the most. 

I haven't used many of the tools here on BP, I just do all the math I can on my own. Can you suggest some good ones to take a look at? 

I would agree with that general description that Pottsville is pretty depressed. I am also skeptical about the vacancy and rents, but I usually calculate with 10%-12.5% vacancy rate which seems like it should be safe(ish), you know? Also, I am aiming for the nicer parts of town which usually provide for more stable tenants, or at least I would assume.  I also usually just assume the rent that the current owners are giving me, so unless while doing estoppel agreements something is drastically different....most of the buildings I am looking at have either 1 or 2 of units empty, and 1-3 units full. Thanks for the tip on rentometer.com - I checked it out, pretty cool. 

is a link to a screenshot of my overview on a potential property. I am actually embarrassed to share it, mainly because I am new and haven't started sharing my numbers (for the fear of something drastically wrong) but here it goes! Assumptions built into the NOI currently are 20% for vacancy and management. Also, the money down and rate are based on a what local bank has "quoted me". - I haven't dug deep into that yet.

Thanks for reply! 

Hello! My name is Bobby Weaver and I am a location independent entrepreneur currently living in Chiang Mai, Thailand.  Originally I am from Pottsville, Pennsylvania - a relatively small town with coal mining roots a few hours outside of Philadelphia. 

Through online ventures and some other items I have about $20k-$25k in cash that I am looking to invest in real estate in and around my home town of Pottsville. My current plan is to purchase a few apartment buildings using leverage and live on the cash flow. I can live comfortably in Chiang Mai for approx $750 per month and in the States for approx $1500 per month. I love living cheap, it is one of my biggest passions.

The plan to accomplish this is to house hack a multi-family property (hopefully using a FHA loan to put little money down) and also acquiring another multi-family, possibly another after that. The prices of the properties I'm looking at range from $25k-$100k and all have at least 3 units. Average rent ranges in my area but falls between $450-$750 per month based on the area and size (of course). If I am house hacking my living expense would drop drastically as well.

Assuming both 10% vacancy, $200 per month CapEx, and 10% for a Property Manager - I am seeing numbers ranging from $400-$700 in cash flow, all with very high CCR (most well over 65%)  and CAP rates and GRM great, too. These are also not fixer-uppers and would require very little in the terms of immediate repairs. 

There are also 2-3 buildings with 6-8 apartments in them, but I am unfamiliar with the process of financing those type of properties (I am very new to real estate investing). 

The Plan - 

4 unit multi family, living in one, 3 rented $350 CF
4 unit multi family $650 CF

Other multi family $500 CF

Bringing my total around $1,500 (I am aware this is pre-tax). 

This plan is still very much in the works, but I fully plan on executing a full plan on my arrival back in Pottsville, PA on May 1st. Any thoughts, comments, AND critiques are welcomed with open arms. 

I am very excited to be a part of this community!