All Forum Posts by: Yinan Q.

@Account Closed mentioned, you do need to take into account vacancy, maintenance, capex. 

It's true that the house is new so there will be minimal maintenance and capex. It's also true that the rental market is hot so your vacancy will be low. But what about in 5, 10 years? It is something you need to consider as a buy and hold investor. 

@Chad Skiles sorry for digging up this old thread. Just want to see if you would provide some update. It sounds like a good deal worth the long waiting. 

If you look at MLS in Brier and MLT area I am sure you will be disappointed, just like me.

@Andrew C. I think it is too risky to buy a property out of state and sight unseen, especially for someone who just started in RE. 

Some of the BP podcasts talks about investing out of state. Check them out and you will learn a lot, good or bad...

@David Begley Congratulations! The after pics look fantastic! 

I was about to complain about there is not an android app. But after reading many complains about the iOS app, I guess I probably would complain more if there were an android app.

Anyways, good discussion.

I agree with @Joseph Ball and @Bryan H. , ask him if the would buy you out at the price he picked, and ask yourself if you would sell your part to him at the price you picked. If the answer is no, then the price is not fair.

@J Scott I love your attitude toward mistakes you made. And than you for sharing them with us!

If the ARV is 140,000, 70% of it is 98,000. This should be your purchase price plus repair. If you think the repairs will be 20,000, your purchase price should be no more than 78,000.

@Arla Wilson You will need to provide more information to get a better answer. What are you going to do with the property? Are you going to flip it or rent it out? How did you calculate your 5% return? 

5% of your out of pocket money (9,1500 + 20,000) is $5,600, which is not much for a flip but not that bad for a rental.

If you want to flip, 5% is too thin. You many end up losing money. Check out the 70% rule if you want to flip. The 70% rule basically says your purchase price plus repairs should be less than 70% of the ARV in order to make a reasonable profit from the flip (typically 10% to 15%).

If you want to rent it out, 5% profit on your $115,000 investment is not bad. You can do a cash out refinance and get most of your money out. You cash on cash return will be higher.