All Forum Posts by: Chris K.

@Marcus Palm

Tesla a few days ago...

Hello!

I am having trouble wrapping my head around some roi calculations.

I have a property let’s say 300k purchase price.

I will out down 10% so 30k.

I calculate that after mortgage, expenses etc I have positive cash flow of 100$ monthly.

This leaves $1200 annually. Coc roi is 4% , 1200/30000, which is not good.

But my question is, there does the equity that is being built up get calculated into my roi. My cash on cash roi is low , but the principal on the property is getting paid down by my tenant, does this principal get calculated anywhere into my roi?

I’m seeing as even if I were to break even , I am still leveraging the mortgage to build up my equity which I then get when I sell ..?

What am I missing or making a mistake?

Thank you!

Hi,

I am interested in my first investment property but I am trying to understand all tax pros/cons beforehand.

Let’s say I get paid through a w2 and also 1099 (self employed) and I have to pay about 10k annually on taxes from my 1099.

If I own my investment property , and even though it is cash flow positive, can I deduct all expenses associated with managing this property (travel, furniture, utilities etc.)? Let’s say this adds up to 8k for my first year. Will this 8k be deducted from my 10k that I would owe bringing my total down to 2K? Or are these two separate businesses?

I hope I explained this correctly.

Thanks in advance for any help and guidance.

-Chris

@Luis Sanchez Rodriguez

I am going through a similar situation in Florida. Prices are higher so coc roi is low, 4-5%. Not good.

I am having trouble finding a deal where I can get the coc roi above 10%. Where does loan pay down come into play? If I out 10% down and rent is small positive cash flow and covering expenses does this lain pay down and building equity count for something ?

Hello,

Is there any (free) or way to get free access to STR rental data for specific areas? EG. Total yearly rental income/ occupancy etc.

Or is there any other way to figure out an estimate on rental income for a similar property in same type of neighborhood?

I am looking to purchase an investment for STR purposes but how do I know exactly how I can do financially? I have my own guestimations but more data would be helpful . Thank you

Are there any type of additional STR insurances that I need before renting? (Especially with a pool property?)

Any other tips/experienced related to insurance with STR is appreciated !

@Erica Larence

Single family (3 bed 2 bath) for rental purposes ..

Hello,

I am looking at buying first investment property in Florida... but from what I am hearing I need 20-25% down. Although this is possible for me, my coc roi is low at these numbers (4%) with being a little cash flow positive.

Since this is my first investment property and not primary residence how can I put less than 20% down in Florida?

Thank you!

Chris

Would anyone have advice on if a first time I best or should add a pool to sfh property? Location of the property is good but for LTR and STR a pool would be a huge help. Any thoughts/ advice would be great.

Bonus question? Anyone know rough estimate for a 7,000-10,000 gallon pool to install?

Thanks

@Chris Seveney

Hi Chris, agreed with both you and Ned . I was hoping I had made a mistake. If I am able to charge a higher rent which then raises my coc roi to around10-11% this is much more appealing.

Where does loan pay down come into play with these calculations or is this a separate consideration as investor? If I have positive cash flow of 500$ monthly, coc roi 11% and building equity= investable!?

Thank you both for your insight