All Forum Posts by: Craig Lee

Thanks @Clayton Silva for the reply. For more context, my REI goals are almost exclusively for long-term wealth/retirement (in my 30s). I have a great job that I love and currently do not need to spend the cash flow from the properties. Goal would be to acquire 20 rentals by the age of retirement, with some already starting to be paid off.

Starting to see the light, but this deal would be my first deal focusing on equity gain and appreciation.  Would you do it: $175k off-market, 3/2, needs less than $15k to be in excellent shape (all mechanicals are less than 5 years old, roof is 8 years old).  $190k all-in ($131,250 30 year loan, $43,750 DP and $15k in renovations).  Saving 15% for repairs/vacancies/capx.  Will cash flow $128.79 according to the BP rent calculator, and will easily comp out at $235,000.  $128 would be lowest monthly cash flow I've received (currently have 5 rentals), but I'm focusing on the $30,000+ in equity in this deal. 

What do you think?

Joe, thanks for taking the time to respond, really appreciate it. Just to make sure we're both on the same page, I'm referring to the annualized total return that is included in the bigger pockets rental calculator — I wasn't intending to compare RE to stocks, but maybe I'm missing something in your answer. My question is more geared towards overlooking CoC in lieu of total annualized return via the BP calculator. I have an opportunity to make a quick 30k in equity, but only cash flow around $25 — if I look at long term appreciation, that seems to make sense to me, but am I overlooking something and trying to make this work?

Help me see if this is "worth it" or not.  Is the ATR still a relevant indicator of a deal?

Amateur investor/full time agent here. I've found an off-market property that would require $175k purchase, $35k down, $20k in repairs, with a conservative ARV of $235k. I'm struggling because the first 3 homes I bought were homerun off market deals 3-4 years ago w/ great cash flow and appreciation. I'm more interested in purchasing 10 homes to have fully paid off by the time I retire, as I'm not living on the cash flow w/ current job. After saving 15% for vacancies/maintenance and all other expenses, this property cash flows $23 p/mo and a 0.48% CoC ROI. I've never had something that low, but I'm also looking at roughly $30k in equity on this property. See images below to see what your thoughts are:

Currently w/ Liberty Mutual.  5 rental properties, 1 personal home, 3 autos, 1 umbrella policy.  Any companies recommended for second opinions?