All Forum Posts by: Craig Knobel

ok friends, I've attempted to put together some numbers on this property, feel free to pick them apart and let me know what you think of the deal..

Purchase price: $30000. Rent:$750. NOI: $3900. Cash flow:$1356

Cap rate: 0.3

These numbers are based on $10,000 down payment, and a mortgage for the other $20,000 @ 6%.

This makes the mortgage (with taxes/insurance) $412

In addition to the $412 I've added a 10% management fee($75) and a 20% vacancy/repairs allowance ($150)

The total is $637, leaving me $113 a month positive cash flow

$113 is not much, but I don't NEED the income now, just don't want to get myself in trouble. What is an acceptable monthly cash flow to you?

THANKS

Alan, I do plan on staying at this job. I am not necessarily looking for cash flow now, mostly just acquiring properties to build wealth. As things progress and I'm able to take advantage of these cash purchase deals I'll look to create some cash flow. Hopefully sooner than later!

Thanks Dmitriy. I'll have to look into conventional a bit more to make sure it's an option on this property.

I've got an opportunity to buy a sfh for $30,000. Property will cash flow $300 a month on a cash deal. My options are traditional lender @ 6%, take a 401k loan(5 year payoff @ 3.25%), or wait another 1-2 years to save the cash. I'm 28 and have been researching rei for 5 years. I want to get my first property in the worst way but need advice on my best course of action...