All Forum Posts by: Craig J Chelette

@Chase Leavitt

"Cash flow = 2,000 - $1,322 = $678"

don't you have to subtract the $549 from expenses from your calculation to get a true cash flow?  So his actual cash flow would be $129?

Also how are you going about finding these off market deals?  i am struggling to find them and clearly the on market deals are not working for me because people are paying over asking price when margins are already really slim.  Thanks for any info you may have

Michael Rodrigues the 2% rule is really hard to come by, specially in Utah. Most people are aiming for 1% rule which is more common in most markets, but again not in Utah. Lucky to see .08% in the deals I have analyzed. 50% guideline is basically what you think. Estimate that 50% of your rental income will be spent on expenses. People set aside different % though. Vacancy, maintenance, cap ex, property management, taxes and insurance are typically calculated. Where are your properties?

For insurance just call the local companies. Try have info like number of bedrooms and sq ft of the property ready for them so they can give you an accurate quote. Get different quotes from different agencies.

I hear ya.  It is tough to find anything in Utah right now that cashflows.  I have put in several offers in the Ogden area on some multi's and have lost to people paying over asking price.  With the numbers i ran, the margins were going to be super thin anyway.  I will be interested to follow this thread to see what others have to say.  Good luck to yall and maybe we can help each other out eventually.

Rebecca Belnap are the units cash flowing? Where else are you looking? I wouldn't mind investing in a better market I just feel like my first should be close to home even though I know it doesn't have to be.

What's everyone seeing as their rent to purchase price ratio in Utah. I am seeing anywhere from .7-1% purchase price to rent ratio. All the ones that are 1% are completely run done and will need quite a bit of work. I am looking all over the state of Utah but have been primarily looking in the Ogden, Roy, and Layton areas because of how much cheaper it is to buy in those areas. I did a walk through of a duplex yesterday and it is nice and has been recently remodeled but the cost to rent ratio is around .85%.

Anyone have any advice on what percentage to put aside for cap ex and maintenance for a property that has recently been flipped.  It is a duplex and i am trying to run numbers to see if it will work.  I want to be realistic with my number and wasn't sure if the percentage should change with a recently re-done property.  The property is in Ogden Utah if that helps.  Thanks

I fear how much it already cost and how much you need to put in with what it rents for. I don't see rent jumping to even 1% cost to rent ratio (which is good here in Utah btw). I think you would be buying for appreciation which looks good right now but is a major gamble. I have had to look further north (Layton and Ogden area) for lower cost of purchase but still a good amount of rent. Just my 2 cents

Sorry I missed this! Hope it went well and look forward to any events in the future!

Welcome! I am also a new investor in the area. Haven't been able to land my first property but have put in a few offers. I am primarily looking for Multi families in the Ogden and surrounding areas because of the prices up that way. If you come across any deals which you don't think fit for you but might fit for me, please let me know. Also if you fix and flip a multi also keep me in mind. Please let me know if I can help you in any way and I'll do the same.