All Forum Posts by: David Hildebrandt

@Tommy Carey I would go with @Christian Bachelder. Sometimes my mind is too creative.

Not saying I get 2% but that's what I shoot for, closer to that number, when doing quick analysis, the better I know the deal will be.

No cash on cash target really. Most of my stuff is larger multi, so if I am coming up with a chunk of cash upfront, it usually allows me to raise rents during the initial turnover phase, which translates to increased NOI and thus forced appreciation that more than makes up for my initial spend

Luxury Vinyl Plank...HD carries LifeProof which is great, just remember is you are using in a rental, the warranty is null and void.

You want something that is at least 4mm thick. Between 1.79 and 2.99 a square.

Assume the payments as consideration for an option to purchase the home at anytime for $300K. Use a mortgage to record the note against the property through a local RE Attorney. Now you have a piece of paper that is effectively worth 200K. You can sell it, borrow against it, leverage it to purchase your investment property that will then generate the cashflow to help make the payments. When the loan is paid off your parents will have $300k of equity and can remain in their home for the time being. @Tommy Carey

Gross monthly rents 2% of purchase price, $200/door cash flow

Another thing, run your worst case scenario numbers for the future. Plug in a big rate jump and see how that affects your cash flow...if the deal still works, then you are good to go, knowing rates probably wont bounce that much

Probably will do nothing to answer your question...but this seems like the perfect AIR BNB. Have to be able to get 2k a week out of a 3/2 I would think.

How do you come up with 5100 as gross rents? That includes your housing stipend? @Daniel Winsor

Usually, at least where I have lived, all the kids in a school district feed to the same high school. Should the school become too large, they might split the district into east/west or north/south...but still the same district as the geography hasn't changed

Keep it simple, and keep interest out of it if possible. i.e. 200,000 purchase price, 10 grand down and 100 payments of $2k. Total spend $210K. That 10,000 additional is his "interest" and if you want to calculate a rate on that then great but just keep it simple.

1. Call a title company and find out what costs are in your area, tell them what your deal looks like, they will let you know. I assume he will use a mortgage to secure the note against the property, and if not you should encourage him to do so. I always estimate two grand to close with a loan on any residential (less than 4 unit property)

2. Not an odd request by any means, some sellers want to keep riding the wave of interest payments, and some want to get cashed out and move on. If you are worried about rates trending up, offer to pay a half a point more now, and make the re-fi contingent upon being able to achieve a certain rate.

Congrats on the first post, and hitting up the calculators. You are headed in the right direction. Going to need a little background here.

Are these real numbers, for a real deal that you have received from current owner? Or are some of these guesstimates on your part?

How many units? I assume two based on the price...but then I see the water/sewer at 300/month. Now I know utilities can vary, but i only spend $340 for 8 units/nine people. So that seems out of whack.

I personally would never do that deal, and I think if you look there is better out there. At 7% COC, you are waiting 14 years just to get your cash back, I understand some of that is equity in the form of down payment, but at $12k is repairs and closing costs.

Is there like hope for appreciation? This property priced well below the After Repair Value of others in the neighborhood?