All Forum Posts by: Damaso Bautista

@Clarissa Day

Hey Clarisa.

If you go to youtube and listen to Bigger Pockets podcast 331 Ashley Hamilton.  It is very inspirational for someone who is interested in the Detroit area.

bigger podcast cast 331 - YouTube

 There is also a long post on BP with her story also.  

@Bo Palladino

Great Bo!

Look at your finances.  If you have great credit, enough for down payment and closing costs, a job with a good salary for the last two years and reserves in the bank then you are ready to go.

If you don't have this, then I would work on this first along with your education to make sure you know how the process works.

Once you have the first part down, the rest falls in line.

Good luck!

@Christopher Adami

No I would not build if you are selling right away.

@Derrick Dill

Nice Derrick!

Maybe you could do a separate post on the box unit including a break down in costs. All in costs s for that unit.

I would be interested in that information.

Thanks!

@Christopher Adami

In my opinion for people in high priced areas of California you really need to look at and ADU in terms of a straight rental investment. Somethings I would think about.

1. Does it meet the 1% rule would be my first gauge.

2. How am I going to to finance it? Cash/ Cash out Refi/ Heloc

3. How long I plan to keep the property.

The only time I would worry about how it would affect appraisal price would be if it makes my property worth less or if it was a straight flip.

These are my thoughts.

@Cathy Malmrose

Hey Cathy!

I am fascinated by your post. I don’t know if I have any answers for you but if you want to PM with what you are going through I would be more than happy try.

@Paul Sandhu

Classic Paul Sandhu😂😂😂

One of the funniest comments on BP.

I am taking a road trip across the US this Spring and I am tempted to take a detour through Kansas to buy Paul a beer and chop it up.

Classic!!!!

@Eli Kallison

@Account Closed

Here is a sample of working the problem:

If you know you can get $1000 for rent then you start there

Rent: $1000

Plug in price of home: $100,000

25% down = $25000

Loan- $75,000 @ 3%

Principal and interest- $316.20

Taxes- $104.17

Insurance- $29.17

Vacancy 5% -$50

Repairs 5%- $50

Capex 10%- $100

Tenanats responsible for: water, garbage, electricity, gas, gardening- $0

Add your costs up- $649.54

Rent minus costs- $1000 - $649.54 = $350.46 monthly cash flow

Yearly cashflow- $350.46 x 12 = $4205.52

Cash on Cash return- down payment $25,000 + closing $3000 (3%) + Rehab $10,000- Total cash investment $38,000

Annual cash flow $4205.52 divided by total cash investment $38,000 = .11067158 x 100 = 11.6% Cash on Cash return

Change the rent amount and the price of the home and plug them in and you can work out the number to see if it works for you or not.

I hope this helps!

@Account Closed

I will give you one scenario that happens all the time.  Elderly person passes away, home if fully paid off.  Children don't want to deal with the property.  They sell it at a deep discount.  

This is just one answer to your question.  There are many more though.

@Abel Tatek

If that is what you want your career to be then no you do not have to go to college.  Being that you are only a freshman I would leave all doors open because I remember at that age I wanted to be so many things. 

I would say use these next four years to learn about the business and if that is what you choose then decide that in 4 years when you are faced with that decision.  

Normally I would advise all young people to go to University because that is the same advice I am giving my kids but I do understand that one size does not fit all in the world.

Good luck!