All Forum Posts by: David Groemping

@Scott England - That makes sense about Moore and is very interesting about your section 8 rentals. I've been told that Capitol Hill area is a good blue collar neighborhood. Do you have any other recommendations for solid blue collar neighborhoods that I could further research/investigate?

Thanks @Ron Daugherty, thank makes sense too. I guess same question - do you have any recs for neighborhoods that would be better for cashflow?

This is very useful, thanks so much everyone!

Thanks @Thomas S.. I am definitely not looking to cover costs out of pocket. What do you think would be the best investing strategy for cash flow?

@Victor S. - You're the man. 

Agreed, I would much rather self manage initially, but not being local I don't have much choice. 

Are you pulling the $1.5k rent estimate from an online resource, or from experience? I checked a lot of sites (Zillow, Trulia, City-data) and found very few homes above $1.4k. I also ask so I can add it to my analysis process. 

@Chase Gibson, good call - that makes a lot of sense. In making that adjustment, it looks like I am still in the red each month. I'll have to find a few other ways to decrease costs. CapEx for example. I did a lot of research and looks like the area won't support rent much higher than that.

Hi everyone,

I was hoping to get some feedback on the numbers I have been running on long term buy-and-hold SFHs around Oklahoma City. The example I am including here is in Moore, OK.

As a little background, My intended investing strategy is to buy properties in great school districts and rent them out to nice families who will hopefully take good care of the property and stay for a while. 

The strategy behind these numbers is to buy in cash and then perform a cash out refinance a little down the line. Executing the BRRRR strategy I believe. Anyhow, I cannot seem to get the numbers to work (even with a very low purchase price) in terms of getting a decent cashflow while not leaving any/much cash in the property.

Here is a link to my spreadsheet:

https://drive.google.com/file/d/11Kqncpzvf186H3ZT79k-YQLwUrb7Zrkx/view?usp=sharing

I have gone through to run the numbers on a number of SFHs in the area and come across the same issue. The example property that I choose for this exercise is linked in the spreadsheet, and also here:

https://www.zillow.com/homedetails/301-Christopher-Todd-Dr-Moore-OK-73160/21724583_zpid/?utm_source=email&utm_medium=email&utm_campaign=emo-sendtofriend-hdp&rtoken=f8e8cae0-6504-4b77-955d-a4d46f9ef4cd~X1-ZUwc7v4kuhxiix_82rpg

My first assumption is that the holding expenses I have collected are off, but I am sure there could be a myriad of things that I am missing.

I know there are a lot of you out there who ARE making the numbers work, so I would very much appreciate any/all advice!

Many thanks,

David

This is really useful, thank you.

I got the rent price from doing some comps on Zillow. Do you have a more reliable source for rental comps in the area? I just plugged the address into Rentometer and got back $1,531.

Would you share your percentages for expenses that would be more or target? Here is what I had:

-Vacancy: 12% of rent

-CapEx: 17% of rent

Thanks so much!

David

Hi everyone,

I am a new investor looking to do begin a long and profitable long distance REI business.

I was hoping to get some feedback on the numbers I have been running on long term buy-and-hold SFHs around Oklahoma City. The example I am including here is in Moore, OK.

As a little background, My intended investing strategy is to buy properties in great school districts and rent them out to nice families who will hopefully take good care of the property and stay for a while. This has led me to look at properties in the following high school districts:

>Mustang

>Moore

>Westmoore

>Southmoore

>Edmund and Choctaw fit his bill as well, but the values in Edmund seem too high and there does not seem to be a lot of market activity in Choctaw (please correct me if I am wrong).

The strategy behind these numbers is to buy in cash and then perform a cash out refinance a little down the line. Executing the BRRRR strategy I believe. Anyhow, I cannot seem to get the numbers to work (even with a very low purchase price) in terms of getting a decent cashflow while not leaving any/much cash in the property.

Here is a link to my spreadsheet:

https://drive.google.com/file/d/11Kqncpzvf186H3ZT79k-YQLwUrb7Zrkx/view?usp=sharing

I have gone through to run the numbers on a number of SFHs in the area and come across the same issue. The example property that I choose for this exercise is linked in the spreadsheet, and also here:

https://www.zillow.com/homedetails/301-Christopher-Todd-Dr-Moore-OK-73160/21724583_zpid/?utm_source=email&utm_medium=email&utm_campaign=emo-sendtofriend-hdp&rtoken=f8e8cae0-6504-4b77-955d-a4d46f9ef4cd~X1-ZUwc7v4kuhxiix_82rpg

My first assumption is that the holding expenses I have collected are off, but I am sure there could be a myriad of things that I am missing.

I know there are a lot of you out there who ARE making the numbers work, so I would very much appreciate any/all advice!

Many thanks,

David

@Rhett Tullis, I've read a number of your posts in the OKC forums. Thanks so much for the reply.

@Dylan B., Yes - I'm on my second time reading it. It's gold. 

Thanks all for the warm welcome!