All Forum Posts by: Dominic D.

Thanks for the reply! I didn't even consider setting up multiple interviews with a property manager in order to review their contracts. I appreciate your help!

Thanks for the advise Bob! I've been meaning to find a local investor club. I just returned from being overseas for over a year. Hope all is well.

Hello everyone,

Recently I purchased a 3/2 single family in the Midwest where I am stationed. My plan is to rent the home out once I PCS to a new duty station. A fair rental price in my market is $1200-$1300/month, however, homes of similar size in my market are typically not renovated (mines is). PMI comes out to $800 and that doesn't account for a property manager, cap ex or repairs. How can I improve my situation? Should I attempt self managing to save on that ten percent? Please help!!

@Dan Barli thank you for the advise. I am going to definitely take action this week and speak with several lenders.

The Figures:

*Based on a $95,000 purchase price.*

Monthly Income: $2,680

Monthly Expenses: $1,140

Monthly Cashflow: $1,539.46

Pro Forma Cap: 20.72%

NOI: $23,833

Total Cash Needed: $4,750

Cash on Cash ROI: 388.92%

Purchase Cap Rate: 25.09%

Total Operating Expenses: $693.92

Mortgage Expenses: $446.62

Vacancy (5%): $134

CapEx (10%): $268

Repairs (10%): $268

Property Taxes: $23.92

P&I: $446.62

I know the current rent needs to be verified with what the tenants are paying but it is fully occupied. Even if I can't get this property at a lower value as calculated, it is still an appealing deal.

Hello everyone,

   I’m a 22 year old Floridian, stationed in the Midwest and I have just over $26,000 saved with a 731 FICO. 

    My strategy is to buy and hold affordable properties while I am still living in the Midwest over the next couple of years. The property is very affordable in comparison to back home and I want to use this to my advantage.

     I have recently analyzed a fourplex in a nearby city priced at $125,000 (I believe I can negotiate it down to the $95,000-$100,000 range). This is a B- property with a new roof and has a combined market rent of $2,680.   I would like input as to what others would do in my situation.

     My questions:

Is it more advantageous to utilize a smaller more local lender as a way to build a reputation as a new investor?

Would it behoove me to put down a larger down payment for more cash flow, or, should I use some of my cash to invest another 5% into another property?

Thank you for your input,

    Dominic

Hello guys! I'm looking for a book on creative financing. I'm particularly interested in putting together a business plan (with about 10k of my own capital) to present to investor for acquiring a smaller apartment building of about 10 units. Can anyone recommend a good read?