All Forum Posts by: David Mount

Hi Alfredo, in what area is your property in? If you'd like to provide some additional details publicly, that might make it easier for folks to chime in. 

https://trial.propstreampro.co... is great! You can get a free 7-day trial using the affiliate link provided. Our real estate company uses PropStream for seller marketing, and it's got nationwide data. Let me know how it works out if you try it! Best of luck!

Another option would be for you to buy a 3rd property as an owner-occupant and then rent out the property that you're currently in, that way you don't have to pull the equity out of any others. Plus, you'll want to consider how many months of positive cash flow would it take to recoup the extra down payment funds. 40% is a LOT of cash to tie up if you're only making a few hundred bucks a month. 

I largely agree with everyone else. Well done so far!

1) Decrease travel expenses for X amount of time (maybe 1 year) so you can save more toward a down payment. 

2) I would temporarily decrease some of your HSA and 401k contributions so that you can scrape together a down payment. 

3) Work to house hack for your 1st property. Even if it's a townhouse that you can rent out 2 bedrooms for $500 a bedroom, that's your best place to start. 

Best of luck, and keep us posted as you make decisions toward financial independence.

 Thanks for the input!!

From the photos, it looks like it doesn't have central air. Just window units for cooling, which I'd presume the tenants pay for. 

Good word on cap ex and maintenance. Running it at 8% for each, here's the updated analysis: 

https://www.biggerpockets.com/...

I'm assuming 5% vacancy in the rental calculations currently.

I haven't reached out to the seller yet to get financials. It was previously under contract and fell through, so it's back on market. That would be a good next step! I'm just starting to explore the Fort Myers, FL market. 

Looks like a good cash-flowing deal. What am I missing? Checked spotcrime.com and it's not as bad as some other areas comparatively. 

Any immediate red flags? 

Are my assumptions way off? 

Property is currently renting for $2,400/mo w/ long-term tenants. Based on photos, it's builder-grade everything and the tenants are probably a 4 out of 10 on maintenance at first glance.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Talk to a lender or two about the conventional route @ 3 or 5% down and house hack your third property that way. You'll pay more in interest on a HELOC usually and the FHA option will leave you paying PMI for the whole life of the loan.

Hey BP,

I'm a realtor in Northern Virginia (just outside DC), and I've been learning about turn-key rental property providers (i.e. rehabbers) in other markets where the rent-to-value ratios are around 1%. It makes sense to me that investing in a bunch of lower-priced, but still A-class, properties for positive cash flow would be profitable and create solid passive income when scaled enough. A few of the biggest challenges would be building a reliable team and not having the first-hand market knowledge. 

I'd love to hear about other BP members' experiences, both positive and negative, with turn-key rental property providers in markets like Kansas City, Orlando, Jacksonville, Chicago, Indianapolis, and others where the prices are lower (below $150k for a SFH) and the rents are pretty high ($900-$1500/month). I'm especially interested in hearing from investors who live in high price-point metropolitan areas similar to DC (i.e. San Fran, San Diego, LA, NYC, Miami) who have chosen to invest in some of these other markets.

Any feedback and input would be much appreciated!

David

Hey Jare', I'm new to the investment game but am interested in the Richmond market for single family homes or townhouses that cash flow well. Could you send me some of the details for the property if it's still available?