All Forum Posts by: Diego Furlan

@Lia Martinez - I really appreciate the insights. I'll be sure to take into consideration those extra factors when analyzing properties. Thanks!

@Lia Martinez - Thanks for the feedback! After reviewing several listings, I started thinking that maybe just buying 1 - 3/3 house and not 1 duplex would work just as well while saving a lot of capital but also sacrificing your privacy. So, I'm glad to hear it's worked for you more than just once! Thank you, Lia!

@Chris Lopez Thank you! And I'm looking into GA because I previously lived there and I'm more familiar with the good/not too good areas/neighborhoods. But more importantly, because my budget fits better in that market. Thanks for the feedback, Chris!

@Chris Lopez Your suggestion is exactly what I had in mind when I posted this question. Thank you for your viewpoint on this scenario! Interestingly enough, just recently I came across a house whose metrics, in my opinion, do meet the criteria of a solid (subjectively, speaking) CoCROI. This house is in Georgia, though. (If you're open to and willing to give it a look, I'd love to hear what your thoughts are!)

And yes, Chris. Currently, I am working with Paul Aceto, a great team leader at the Aceto Firm here in Denver.

Again, I appreciate all the feedback! Let me know if you want to hear the numbers on that property I briefly touched on. 

Thanks, Chris!

@Chris Lopez Thank you for your reply, Chris! You're right, I have found a few duplexes here in Denver. What I meant to say was that - the living conditions of the duplexes I have found that would also meet my budget, are subjectively speaking, not in the nicest conditions nor locations. But then again, this is why I was considering buying a one 3BD/B house and not a 2BD/2B duplex as it would provide an overall better living condition that also stays within my budget.

@Mark Hart Thank you for your recommendations! I've noted them down and will continue to work on researching different markets while building more capital. 

Thanks again, Mark!

Hey everyone!

What do you think would work best for a new investor with low starting capital? I think long-term, a duplex is the better option since I'd be able to eventually move out and switch my place for a tenant and invest in another property. 

I am considering buying one property (3 Bed/Bath) since I am starting out with low capital for an FHA (3.5) - Will buy "as-is" to get better approval odds and avoid the 203K loan.

The reason I am considering this is because most duplexes I've come across that are also within my budget (≤ $25OK) are in not such great shape nor in the best neighborhood; and it's only logical since my budget is so low. But hence, I ask if getting one - 3-bedroom/bath house would be the better option given my situation.

Thoughts? 

@Jim Cummings - Do you recommend any contract templates for co-signers? Thank you!

Hi, everyone!

I wanted to ask for your feedback on how I am currently evaluating properties. I am new to investing but eager to learn! I've read a few books, attended webinars, networked, etc, and I plan to keep doing so. BUT I also want to make sure I'm applying the knowledge correctly by hearing it from the pros!

Currently, I am looking for a property below $250k and here are the metrics I am using to evaluate if the property will give me cash returns:

IDEAL HOME (I believe these are the ideal metrics, please correct me if I should adjust my filters): 

• Listing Price: ≤ $250K 
• Property Market Value: ≤ 80%
• Property's Price Value Appreciation Rate: ≥ 3% (I read articles and gathered other data to find trending markets. After doing so, I looked around in Realtor.com while also checking with local real estate agents within the vicinity of the supposed trending markets to confirm the validity of my resources' claims. Should they be accurate, I believe that anything above 3% is a good deal)
• Property's Rent Value Appreciation Rate: ≥ 1.5% (I used the same method as above but more rent-oriented)
• CoCROI: ≥ 7%

INCOME:

• Monthly Rent - I look into what the median rent price is within a 1-mile radius using a few resources like Zillow.com, Rentometer, Craigslist, etc. (Applying the house's specifications).

EXPENSES:

• Mortgage
• Tax
  
• Insurance
• Utilities
• Vacancy: (I was thinking of saving up 3 months worth of rent? Or charging a monthly fee?)
• CapEx
• Repairs
• Management Fee

CASH FLOW:

To find my rental income, as I previously mentioned, I am using a median amount (contingent upon my total cash return) by searching for a 1-mile radius using resources like rentometer.com. I believe having a cash flow of at least $100 should be enough but that would also be tied into the amount of cash invested, but please, correct me if I'm wrong!

CoCROI:

Annual cash flow divided by my total cash investment.

Say I invested $20K and my total annual cash flow was $2K. My CoCROI would then be 10% 

CONCLUSION:

I would consider this a solid deal. 

Any thoughts, suggestions, and comments are highly encouraged and appreciated! 

(And on a side note, do you have any preference on the methods you use to skim through listings? (Like the 50% Rule, 2% Rule, or maybe one custom rule that you recommend?) Or do you recommend doing extensive research for each property? 

Thank you!

Diego Furlan