All Forum Posts by: Dominic D.
Dominic D. has started 3 posts and replied 10 times.
Post: Did I overpay on my rental?
- Rental Property Investor
- Oklahoma City, OK
- Posts 10
- Votes 1
Originally posted by @Carl Millsap:
@Dominic Dominguez I was in the same boat at one point so here are my lessons learned.
1. I would start a fund now for CAP-EX / repairs....$100 per month so when you PCS you'll have $ set aside when those items come due.
2. Interview multiple property managers, get a copy of their agreement and then set a second meeting based on questions / research about their agreement.
3. Set a limit on how much they can spend for repairs before it requires a call / authorization from you. I set mine at $100 because you don't want any surprises.
4. Don't be afraid to get a 2nd or 3rd quote independent of what the property manager gives you. My manager quoted me $4500 for repairs after a tenant moved out. I got the work done for $1200. I had everything done on the list they provided.
5. It's possible to self manage but consider if deployment is a real possibility, and what you would need to do in that situation.
Since your property is renovated and others aren't I'd attempt to get more $ i.e. $100-$200 more per month. If it doesn't rent at the higher rate drop it $5-10 per week until it rents.
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!
Post: Did I overpay on my rental?
- Rental Property Investor
- Oklahoma City, OK
- Posts 10
- Votes 1
Originally posted by @Bob B.:
IF this is your first rental I would probably use a good management company for the first year or so until you have time to learn the ins and outs of being a landlord. Join a local investors group and find a good mgt. company. Keep learning from BP and then self manage. You won't have a lot of cash flow now but its will get better. Congratulation on your first purchase.
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.
Post: Did I overpay on my rental?
- Rental Property Investor
- Oklahoma City, OK
- Posts 10
- Votes 1
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!!
Post: Buy and Hold Questions from a New Investor
- Rental Property Investor
- Oklahoma City, OK
- Posts 10
- Votes 1
Post: Buy and Hold Questions from a New Investor
- Rental Property Investor
- Oklahoma City, OK
- Posts 10
- Votes 1
@Dan Barli thank you for the advise. I am going to definitely take action this week and speak with several lenders.
Post: Buy and Hold Questions from a New Investor
- Rental Property Investor
- Oklahoma City, OK
- Posts 10
- Votes 1
Post: First deal accomplished!
- Rental Property Investor
- Oklahoma City, OK
- Posts 10
- Votes 1
Post: Buy and Hold Questions from a New Investor
- Rental Property Investor
- Oklahoma City, OK
- Posts 10
- Votes 1
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.
Post: Buy and Hold Questions from a New Investor
- Rental Property Investor
- Oklahoma City, OK
- Posts 10
- Votes 1
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
Post: New Member from Florida
- Rental Property Investor
- Oklahoma City, OK
- Posts 10
- Votes 1
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?