All Forum Posts by: Charlie Anne

@Javier Banuelos that was very helpful, thank you.

I did not include holding costs in the initial cash pool. After everyone’s feedback I decided to wait for something better. 

@Adam Reeves is that 10k cashflow/ya after all expenses or total rental income?

@Kevin Trapani I did end up passing. 

I see you’re in August, GA! The house was pretty nearby. Do you invest in your local area? 

Thank you @David Bowles! To clarify the $175 is after all the expenses are accounted for. I set aside $275/mth for repairs/capex since it’s an older home with a 16 year old HVAC. Not sure if $275 is too high or not, but that’s what I’m comfortable with at the moment. 

How much do you set aside for capex/repairs total? I never really understood the point of doing a %. I am more looking at the house, age and setting a fixed Amy per year. 

@Alexandre Marques dos Santos the $175 cashflow is after taxes, insurance, Property management, vacancy, and $275/mth towards capex/repairs.

The $175 is if I get $1300 rent but there is a possibility of getting up to $1400 I just did the math conservatively since the economy is down. 

@Darius Ogloza very insightful feedback, thank you! This home is in a middle class B+ neighborhood. Very safe and well kept with a neighborhood pool, just older homes. 

@Joe Cassandra I thought that was terribly high! I ended up passing on this but now I know to shop around at a lot of lenders

@Scott T. I’m out of state so that’s not possible. I’m also not very handy! 

@Kris L. unfortunately 118k is the bottom because they owe that much on the note + are paying closing costs on top of that.

I decided to pass on this house thanks to everyone’s helpful input!

@Carl C. my realtor thinks it could be worth $175-185k ARV but I haven't found comps that supports this.

Zillow currently estimates the property is worth $165k for what it’s worth. The house had an offer for $145k in the current crappy condition.

$160k ARV may be a bit conservative.