All Forum Posts by: Ciprian L.

@Christopher Franco Welcome to BP!

How much will the rent be after you finish the rehab? How much are you going to spend to make it rent ready? What is the vacancy rate in the area? How much do you have to pay for the property management?

Find the answers to this questions and post them in here.

You should receive a lot of advice from more experienced investors.

Good luck!

@Randall Kates It's hard to give feedback without having all the information.

How much do you pay in rent each month? Is the place that you rent right now similar with the unit that you are going to occupy in the duplex?

Your monthly expenses from what you posted would be around $2000 including the PMI, the rent for the second unit is $1100. You will have to pay $900 every month to live in your unit.

From the $2000 in expenses a few hundred are the principal pay down and you will also have some tax advantages. When you take everything in consideration it's less than $900 to live in the unit.

Can you refinance after you finish the rehab and maybe get rid of the PMI? Do you see any appreciation in the future in the area?

@Gregory Pope Welcome to BP!

the property management fee is 10%. 

On the Maintenance reserves row you should have the exact same numbers as in the Property Management Fee row.

In your worksheet you calculated $200/year for maintenance from the monthly rent of $2,000.

The correct calculation is: 10% of $2,000/ month in rent is $200/month. Yearly rent $24,000, yearly maintenance reserves $2,400

I don't see the PMI in the monthly expenses. Did you include it in the $491.83?

First, find some comps for a renovated property. Ask you agent for comps.

I checked your HOLD worksheet and noticed you don't have any PMI payments. What type of loan will you get? Usually if the down payment is below 20% you will have to pay PMI.

$8.33/ month in maintenance? Way too low.

@Marina Flu How much is the rent in the area for a 4/2, without students? How much do you have to spend when you have a turn over? How did you calculate the cash flow?

@Sebastian Santoro Welcome to BP!

I'm an investor and realtor from Burbank, almost in the same situation regarding the marketing, trying to figure out the strategy for mailing.

@Ross R. Welcome to BP!