All Forum Posts by: Jeff Hogan

thanks Jon; but, aren't taxes based on income? If I am netting $300 a month after expenses on my rental property woudln't that be considered income?

I'm sure I'd benefit from talking to a CPA or tax attorney; but, I paid cash for the property -- so the majority of the rent comes back to my pocket instead of paying off a loan.

I'm a first time investor and my tenant just paid his first months rent. Typically how much do you set aside for Taxes?

Any suggestions so I don't make a rookie mistake?

When I say HOA of $115 per month I really mean COA (though they call it HOA).

It's a high rise condo in a downtown area. The fee includes use of two pools and a state of the art Gym.

Is it possible to pass this fee along to the renter -- or should it just be built into the rent?

In essence -- it's the tenant that gets the benefit of the HOA.

Having untethered access to a gym and pool without leaving your house is pretty sweet I would think.

When looking for investment property do you look for property that already has a tenant?

Is there a venue for trying to market properties to landlords?

What would be the max you'd pay on a property that brings in $800 per month with $2000 a year in property taxes and $1500 a year in HOA?

there is also vrbo.com

What is your take on Condo's? I know the preferred flavor is single family homes.

But, I have a chance at a condo in a well established high rise that provides a leasing company. The condo has high occupancy and is meticulously maintained.

It had a renter in it until it foreclosed (out of state investor had about five condos and let them all go) and was bringing in $850 a month.

How much cash flow am I looking at if I bought for 45k?

I'm another guy new to this all and likely about to show my arse once again.

That said...

I'm looking at a condo that's in foreclosure. It's in a downtown area close to everything. It's small (a studio) and I can get it for about 43k.

Selling condo's is kinda tough because nobody wants to loan money using them presently so I have to approach this from a landlord position.

I should be able to rent it quite easily for $850 a month.

I have to pay $115 HOA fees a month and the property taxes are $2k a year ($165 a month).

The leasing company at the condo will manage the rental for me at a 7% of rental price (about $60 a month) and they only charge when it's rented.

This sounds like a good option as I barely even know how to change a light bulb.

Looking at past sales in the complex(using county website) prices range from 55k up to 150k

I know I could rent it in a heartbeat...especially since i plan on furnishing it...I'm just not too sure what the market is for reselling.

And I'm not sure how much money i'll actually be looking at making per month on a 50 k investment (43k to buy and a high estimate of 7k to update and furnish)

Ok Jon,

That unpacked it more clear for me. Food for thought definitely.

I'm also looking at a 40k cond that's foreclosed. It's assessed at 99k and all the ones around it are selling for 75k and up....

Jon,

I'm trying to follow your math.

But, I'm not getting a loan on the property I'm wishing to purchase.

I'm getting a loan on my current house which is assessed at 350K and has a zero balance.

I don't qualify for a HELOC or a home equity loan because of my credit score so I can only get an FHA loan.

The minimum FHA loan I can draw against my home is 80K at 6%

Of that 80K...60K would go towards purchasing an investment property....20k would be kept in a separate account to cover unforeseen expenses.

I do appreciate the education. I'm not sitting here trying to get someone to tell me what I want to hear...I just want to make sure I"m being clear about my situation.

Wow....thanks so much for the resources provided. I'm trying not to be discouraged...

And I certainly don't want to jump just because it seems like a good deal...

I think the part of my equation that I'm not factoring in is this:

If I get the home at the rate I hope (60k) and I borrow 80k that will leave 20k in reserve.

10k I will keep untouched for unexpected things. The other 10k could be prorated down to payback on the loan..

Ugh..i'm doing the math as I'm typing...that's only about $60 a month.

I do appreciate the patience and latitude I'm being given here; but, my gut tells me this is a good deal if I can get it.

I know I can rent this property in a heartbeat. In fact, I put a post on Craigs List advertising it and I've already gotten several inquiries.

It's in a good safe neighborhood. The land value alone is 90k. In 3 years I'm sure I could double my money.

I just want to bring in a bit of income in the interim.