All Forum Posts by: David Chappell

@Ryan Goff for the first year no. I have budgeted fees into the CF numbers just to get a hang of things and get a feel for the tenant and see if its something I would want to take over myself after I get some experience.

That's awesome, congrats :) I look to be purchasing my first property here within the next 90 days!

Hi everyone, wanted to give a quick update on this thread. The original property I was looking at was pulled off the market, not sure of the reason. Another property (same floorplan, same neighborhood) went on the market for $70k. I asked my realtor to meet the property manager there for a quick tour and an estimate of what cosmetics would need to be done to get it rent ready. If I can purchase for $67kish and put $8k in it to get it ready, assuming no major repairs needed...that would put me at around $5k in forced equity assuming an $80k ARV. With the new numbers, the cash flow would be around $230/month. This would be a long term hold, just looking for cashflow on my first property, not necessarily forced equity or appreciation. I am worried about leaving that much cash in the deal, but I am not comfortable with a large BRRRR project for my first one.

Here are the new numbers, do I look to be missing anything?

@Carl Fischer sorry for the delay in response. Thanks for the assistance! Just another thing to add to the loooong list of todos :)

 Is that something I need to get setup before purchasing my first property or it something I can research along the way and get setup before tax time comes around? I probably need to do some more reading on that part..

 This will be my first deal! I sent you a PM request, I can share my worksheet that I'm doing my calculations to give you an idea of where its coming from. I made an error in the mortgage tab and the new CF is $237/mo

Hi Natalie! The mortgage paydown benefit definitely helps make this property look a little better. $120 cashflow per month isn't super attractive so I am trying to account for any and all expenses that may come up (like taxes :)) that I need to be prepared for

Whoops! I forgot to deduct the interest from the HELOC (used for down payment). That gives me the new math below..interest deduction went up from $3693 to $5,160. Tax owed $414 is about 27% of the yearly cash flow of $1,483. Does that sound about right?

Hi James,

After getting a few insurance quotes, it came in a little higher than I thought ($1300) which puts the cash flow at around $128/month. I also started looking into the tax implications and if I am doing the math right I would be paying $800 (25% of $3174 taxable income) which ends up being about 1/2 of my yearly cash flow. Not sure if I am doing that math correctly though.

Still not a bad deal I dont think, there are two other replica properties in that same neighborhood that need some work...also looking into those as well. I received a quote of about $6k to get it rent ready (clean/pest/paint/flooring/landscaping/garade door).

Hi everyone, I am running the numbers on a potential property and Im making sure I am doing this correctly.
Here are the #s, if these look right I am paying $803 in taxes on a property that Cash flows $1,574??