All Forum Posts by: Kevin S.

Jaysen - Is the assumption that acquisition costs are not part of cash flow?

Not for flippers but for buy and hold specifically, say you're evaluating a property you've owned for 7 years. Your cash flow for Year 1 is wildly different than your cash flow for Years 2-7, and that difference is a large initial rehab.

So what's the bigger problem? The fact that you're using cash flow to evaluate it in the first place (should be using another calculation?), or the fact that the rehab was factored into cash flow?

4 bedrooms between 8 condos? Each condo gets half a bedroom? Hah. I assume this was a mistype?

I've found a couple through RE agents but their CCRs were not attractive to me.

I don't care about the cash amount. I care about ROI. $50 a month with 20% ROI is better than $500 a month with 4% ROI.

Hi Dave,

What residential rehab experience do you have?

Jay - What about existing home sales?

I'm looking for some general guidelines in the Charlotte, North Carolina area for single-family homes. I realize it depends on area, time of year, and probably 100 other factors, but surely there must be some loose correlation averages out there. Even if it's not in my area, I'd be interested in your thoughts:

This is an example of what I'm looking for:

$500-$600 in rent corresponds to an average 15% vacancy rate

$600-$700 in rent corresponds to an average 13% vacancy rate

.....

$1300-$1400 in rent corresponds to an average 6% vacancy rate