All Forum Posts by: Crystal L.

Is it an A, B, C or D property? What kind of area is it in? How are the schools? Is there any deferred maintenance? What condition are the units in?

If it's in a town with jobs, good schools, and in good condition I say go for it. If it's in a bad area or has expensive issues to fix I say don't go for it. 

Maryvale is a tough hood. What is your strategy? What are your goals? How much time do you have to devote? What do the numbers look like?

I wouldn't do it. I think your math looks right - I'm just not sure about your assumptions. 

You said the condo is near a university and was used as a winter home which means it's either next to ASU (Tempe) or UofA (Tucson). I would disagree that all Tempe and Tucson university-surrounding neighborhoods are good, so make sure you have gone there at night and you would be comfortable having your mother/daughter/etc live there alone. 

I'm also not sure about your $800/month assumption. If nothing else you need to increase your Vacancy Rate % (student tenants have high turnover). I'd also suggest lowering the $ amount you think you can get per month. Just because something is on craigslist for $800/mo doesn't mean it will be rented. That number seems high to me. And in Tucson specifically (if that is where it is), they are building a ton of new student housing on campus so there will be less demand for student housing off-campus. 

Lastly, as a rule of thumb places with HOA fees are generally not the best investments. HOA fees never go down and it cuts into your cash flow.

Just my 2cents - Good luck!

How long did it take you to get over your fears and doubts and just go for it?

Scenario:

$150000 for 6 1bed 1bath units (3 duplexes). Monthly rental income is $2400, w/ 50% rule NOI is 1200/mo, 20% down 15yr mortgage is $834/mo so cash flow is $366/mo, ROI is 15%, cap rate is 10%, 1-2% rule is 1.6%. To me this looks good. Planning to buy and hold. Area is decent, no deferred maintenance, have property manager, all units fully occupied.

I've got enough cash to do 3-5 deals like this. Does this look reasonable, or would the BP gurus suggest I instead look to put the whole sum in one larger complex?

Thanks in advance, you guys are the best :)

Lots of good options here. I've found the easiest to be Google Wallet. That way paying rent is as easy as writing an email and you don't have to give out any account information. It just uses an email address and is super simple.