All Forum Posts by: Denny Robert

So let's break it down:

Monthly NOI = $750 - $70 = $680

Cap Rate = $680*12 / $30,000 (*100) = 27.2%

Cashflow = $680 - $365 = $315

Annual COC = $315*12 / $2500 (*100) = 151.2%

One thing I would mention is your technically not including all expenses when you're doing the work yourself, such as property management.

So for your situation you need more info to properly evaluate. What are your other monthly and annual expenses? What were your acquisition costs?

NOI = Net Operating Income = Gross Revenue - Operating Expenses (not including mortgage) Cap Rate = Annual NOI/Purchase Price (or current Value) Cashflow = NOI - Mortgage (Annual) Cash on Cash Return = Cashflow/Acquisition Costs (Down payment, closing costs, rehab, etc)

Christine Nguyen my recommendation is to listen to the BP podcasts. At the end of each one is a couple book recommendations but the interviewee. I've picked up so many great books that way. I personally recommend Rich Dad Poor Dad, E-Myth, and the BP books to start off with. Here is a big list... https://www.biggerpockets.com/forums/79/topics/157661-big-list-of-the-best-real-estate-investing-books

Adriel Hsu what a great post! With the level of detail you went to in this you will only get better as a flipper and BRRRR investor. I hope your partner investors liked the return they got because after you take a breather it's time to do it again and make a nice equity profit this time!

Nova Home Loans is a great company here in AZ. I recommend Jud Holmes, but he has said he likes the processes that Nova puts in place.

Hi Aaron Arnold welcome to BP! House hacking is awesome. I'm still doing it by hosting international students in my home, while living in one unit of a triplex in Tempe. When buying a multi family you will need a few thousand for reserves (equal to a few months of mortgage payments) to qualify for a 3.5% down FHA owner occupied loan. $20k is enough for down payment, closing costs, and reserves. If you buy a fourplex you will likely get your whole mortgage, taxes, and insurance covered by the 3 renters in today's market. If you buy a duplex or triplex they will take a big chunk out but not cover everything. Another option is to buy a 4 bedroom home and rent out 3 bedrooms. Same idea as a fourplex right? Those 3 bedrooms can be rented out for $400-$600 and cover your mortgage.

Daniel Lehrman welcome to BP! Which financial company do you work for? Do you like the work? Have you considered going on your own as a commission based advisor/CFP? You can make a ton of money and having a good book of business is kind of like having a real estate portfolio. Even better, do both. 1. Drive neighborhoods. Use an app to look at prices and rents. Decide what kind of property interests you (single family or multi family). Evaluate some deals. 2. For mentors talk to people on here and go to the local BP meetup and AZREIA. If you have any specific questions don't hesitate to reach out to me directly. I recommend listening to all of the BP podcasts and read the recommended books in them. If you do that you will become a sharp real estate investor, better businessman, and better human being while you're at it.

Dovid Staples send me a PM. I might be interested in the other two depending where they are.

@Alexander Alguire, with a 203k loan you have a to use a licensed contractor for all the work. He has to submit a detailed bid laying out all of the work you want him to do. You will either need to give notice to the current tenants if you want to remodel their units, or not use 203k for the interiors of those units. Also, with a 203k loan you have to be able to justify that after repair value with comps, so make sure your agent can product those. If you're going to stick $30k into the remodel, the mortgage company will want to justify it.

I personally think 203k is more strategic on a single family home, but if you can make it work to your advantage that would be awesome.

Also FHA will require you to have enough money for down payment and a few months of mortgage payments in the bank for repairs and vacancy.