All Forum Posts by: Caleb Krites

@Travis H. I'm not guesstimating on the property taxes, I pulled them directly from county auditor site. 

I used 10% as a starting point for capex, but thought I would adjust based on the age of the big expenses such as roof, HVAC, etc. Thanks for the feedback.

@Andrew Johnson Great feedback. I may be getting a little anxious to make a deal and don't want to force anything. I would much rather overestimate costs and make sure the deal still works. Thanks!

Hi Alexander, I'll make sure I get an actual quote for insurance. Thanks for the advice. I also like the idea of rent check coming every week with section 8, but know there are pros and cons. 

Hi Sam, thanks for the feedback. I wasn't sure about Zillow estimates, I've heard they can be inaccurate. Also, good call on insurance. If I assume $40/month (5%), that takes monthly expenses up to $697.80 which brings my monthly cash flow down to $202.20

Hi everyone. I've been looking at properties and doing research for the past 6 months and I finally feel like I'm ready to pull the trigger. I'm in the Columbus, OH market and found a property that seems like a good opportunity, but would like to get some feedback from experienced investors to make sure I am looking at this properly and not missing anything.

The house is in what I would consider a C/C- neighborhood in the downtown Columbus area, but it butts up to an up-and-coming area. It is currently rented and section 8 approved. It's a 4 bed, 1.5 bath, 1,900 sq ft single family home. I plugged all of the numbers into the rental calculator and this is what I came up with:

Loan: purchase price of $49k, 25% down on 15yr mortgage at 3.31%

Est. repairs: $10k (not sure how to estimate without doing a walk through, but it is currently rented so I didn't think it could be too bad)

Total cash needed: $22,750

ARV: $105K (used Zillow, estimate was $117k and all homes in neighborhood were estimated at $100+)

Monthly rent: $900 (used rentometer and looked on Craigslist to see what was currently available)

Total monthly expenses: $657.80 (P&I $259.30, Cap Ex $90 (10%), repairs $90 (10%), management $90 (10%), vacancy $72 (8%) and property taxes $56.50 (6%)

Cash flow: $242.20

Cash on cash ROI: 12.78%

Would love to hear some feedback on if you think this would be a good deal and if I'm looking at this properly or missing anything.

Thanks!