All Forum Posts by: Chris Herrera

Looking at this SFH 3bd 2bath , no basement. PP is 175k and comps for the area go at least 240 to 280 for high end homes. Great area with great schools. Already in move in condition, basically rent ready but we want to put about 30k worth of upgrades to get it up to standards with the area. Taxes about 5k. We'd do the majority of the work ourselves, but what does BP think?

I'm looking at this 6 unit in a pretty good area that I think is a pretty good deal. It'd be my first deal though and I would likely need a partner help me with down payment/ managing the property and getting a commercial loan.

Purchase: 330K

Annual Rent: 62,000      Mortgage: 17k

Vacancy: 6,000   Taxes: 7,000  Insurance: 3,500  

Management: 6,300  Maintenance: 6,300  Utilities: 3,600

Reserves: 6lik,300

I would be managing it myself and maybe with a partner so that 6k would be saved for capital exp, even though the property has been maintained and looks to be rehabbed in the past 5 years. Neighborhood is a B area. Thoughts as a potential 1st deal? I'd likely try for a FHA commercial loan unless I can find an experienced investor that could provide more options to leverage this deal

Thanks for the great feedback everyone! I think I just mislabeled insurance the second time. I would be managing myself, but I'm using general numbers from what another more experienced investor told me I should expect. It seems from what I'm hearing that even if the numbers are a bit conservative that the deal is mediocre at best. 

I'm looking at a Duplex and want to see if my logic makes sense.

Purchase P: 200,000

Down Payment: 40k 

Mortgage: ~800/month

Gross Rents: 2,000/month

Taxes: 375/month    Insurance: 200/month    Vacancy 200/month    Insurance: 100/month  

Management: 200/month   Reserves: 200/month      Maintenance: 100/month

Cashflow = -175/month

I know the 1% rule is just a rule of thumb, but am I missing something that gets me that bad of a cashflow figure? That's even without factoring initial repairs or any utilities that are not paid by the tenants