All Forum Posts by: Chris A.

 Sounds like you are in an amazing spot Mark. How did you start off?

@Nathan Gesner - Hey Nathan. How do you pull your rental comps.? I see sites like Zillow only show active rental listings instead of properties that are already rented.

@Nathan Gesner - Thanks for that write-up! As a rookie, I found it very informative.

Just a little update,

- I upped the rent from $1,900 to $1,950. I was being extra conservative with that number and I believe it could actually go for at least $1,950 a month, if not more with some rehab (I didn't originally take that into account).

- I lowered the maintenance from 15% to 10% (which overall seems more reasonable and realistic) and the Capex from 8% to 5%.

With these changes, the property would cash flow $19/month (lol). It's not much, but at least it's now positive. CoC return of 0.3%! I'm cracking up at these #'s.

 Hey Brian. I agree with you, we are def. in a seller's market. The property actually has a pending offer after 1 day of being posted lol. I am just practicing running my numbers and getting better at it. I actually want MFH's, but there's not much of them in Vegas. I think I'm going to keep practicing running my numbers in Vegas then start to look out of state for a less expensive market.

 Hey @Joshua Janus - Thanks for your response.

- I would say my gross rent primarily took into account the square footages. I will take a closer look at those categories next time. The problem I ran into is my limited data available. Zillow only shows properties that are up for rent, not properties that are currently rented. Rentometer seems to spit out a number based on sq.ft. (at least the free version). In the future I could also use a realtor to help firm down my gross rent # once I get more serious on a property.

- Having the contractor walk the property is a great idea. I will keep that in mind for the future. Would you do that even before you have an accepted offer on the property? Or during your contingency period?

- My vacancy % is not well researched. The 8% equates to about 1 month a year that the property will be vacant to have a bit of a buffer.

- I will take another look at the maint. & Capex amounts. The 15% maint. did seem higher to me as well. I was using a table based on age and interior condition of the property.

I'll keep practicing running numbers on properties. It sounds like I need to get specific numbers for my area. Having some team members like my realtor, contractor, and property manager would help. I'm not certain that I will stay in the Las Vegas market instead of going out-of-state and looking for MFH's so I haven't contacted anyone yet.

Hello all,

I've recently reached a point in my journey where I'm actively starting to dive into my market and run some #'s on properties. Since I'm in Las Vegas, I am looking at SFR's. The property I ran my numbers on is 8361 Charlton Valley Ct., Las Vegas, NV, 89123 (Zillow link: https://www.zillow.com/homedet...). 

Listing price: $380,000

Est. ARV = $342,000 (running my own comps.)

Purchase Price = $275,000 (~80% of my ARV)

Loan product = Conv. mortgage 20% down ($55,000) @ 4% interest, 30 years

Rehab costs = $20,000 (guesstimate for my initial run-through of the property. I would like to make the kitchen/ bathrooms modern, new flooring, and put some established privacy plants in the 'backyard')

Rehab costs overrun = 10% ($2,000)

Purchase costs = 3% of purchase price ($8,250)

Gross rent = $1,900 (Using Rentometer. I started pulling my own rent. comps on Zillow and there was only property currently for rent. Not sure how to see properties that are already rented).

Vacancy = 8% of rent ($152/month)

Taxes = $1,461/year ($121.75/month)

Insurance = $1,026/year ($85.50/month)

Property Manager = 10% of rent ($190/month)

Maintenance = 15% of rent ($285/month) (Higher due to property year - 2004)

Cap.Ex. = 8% of rent ($152/month)

HOA Fees = $46/month

Utilities / Landscaping = $0 (paid by tenant)

Principal & Interest = $1,050/month

Operating Income = $1,748/month

Operating Expenses = $865/month (49% of income)

Cash in deal = $85,250 ($55k down + $8,250 purchase costs + $22,000 rehab costs)

Cash flow = -$167/month

CoC = -2.4%

Unless I can get this house for significantly cheaper, this is not at all close to a deal I would want. Plus I would have a bunch of money sunk into the property. Please take a look and let me know how my #'s look and any comments or suggestions you have. Thanks!

@Nathan G.

This helped me out. Thank you

 Hey Matt,

Thanks for the additional information on the delayed finance exception. Please let me know if I'm understanding this correctly: if I have the proposed rehab costs included on the HUD (say $30k) then that means I must have that $30k available in cash at closing?

@Taylor White - This helped me understand how to include the HML in the deal. Thanks.