All Forum Posts by: Dylan Badinghaus

Hi everyone ! I am running numbers on a duplex and wanted to double check and make sure i have everything covered and see what people think. Asking price is $99000  rents are $600 per side and tenants pay all utilities  . Owner said has long term tenant on one side of 9 years , building has had  great rental history. 

600*2=1200 monthly

1200*12= 14400 yearly 

taxes/insurance =2800 yearly

repairs/maintenance 10%= 1440

vacancy 10%=1440 

14400-2800-1440-1440=8720 NOI

20% down on 99000 @ 4% interest 30 years =19980 

mortgage payment roughly 382 a month /382*12= 4584

(NOI )8720 - (debt service )4584= 4136 monthly cash flow

cash flow 4136 / (money invested) 19980 =20% ROI

Am i missing anything here ? Would you alot more than 10% for repairs and 10 % for vacancy ?

This was his response after I offered the 33500 , "we just want to Yea they said they want to just do all we can and see how much we can get after that". So then I asked again what number are they looking to get for the house and he responded " not really sure just want as much a possible." Not sure where to go from there . 

Hi everyone ! I need some help on a flip . 

My cousin and his with got willed a house, the previous owner let the house go in pretty bad shape . We had it comped for them as is value was anywhere from $20000-$49,000 . It is a 3 bed 1 1/2 bath in a great market houses sell fast . I ran my rehab numbers and do do I complete rehab it was going to be $37,350 in rehab so I took the 70% of the arv 110,000 - rehab cost = max offer of $40,000 . The sellers are splitting profit 3 ways  . I put in an offer at $33,500 to start and all they said was we want to do as much work as we can so we can get the most out of it . I tried explaining they need all new flooring carpet / vinyl smells like animal urine and it's all stained , needs ac unit and heat with duct work ran among a lot of other updates . My question is how do I get them to give me a number of what the are expecting to get for the property ? Thanks sorry it's a jumbled mess . 

Thanks so much for your input ! Sorry for the late response. How much cash flow do you like to shoot for per month ?

@Jonathan Twombly Thanks for getting back with me! My goal is long term holds, so yes it would be over 10 years. I am looking for 10% cap rate deals. I agree that the property must cash flow at the time of purchase. When I run my numbers, I run a 10% vacancy rate and 10% repairs and maintenance. I usually do quick numbers at 50% expense ratio. Does that seem like a fair number to run on small apartments? When you are figuring your 8% cash flow after expenses, are you taking that from your gross income or your net operating income? I do not plan on buying for appreciation, if it happens it is a bonus. As of right now my only interest is to cash flow, so I wouldn't factor that into my numbers. 

Thanks for all the advice.

hi everyone so sorry i don't have a pic posted yet but i will soon.

so i am 26 years old and newly married as of may 20 (yippie) . we are currently renting a 4 bedroom house for $700 a month paying no utilities and we don't have to mow or do any lawn care. i am wanting to get into small multifamily 2-4 units to start out but i'm not sure what to do just yet . i keep hearing people say how we are at the top of the market and now is the time to sell not buy and a correction should be coming . so i have a couple questions do i keep saving and wait for prices to fall and buy at the bottom ? (who knows how long that may take though ) do i look into buying one now with 20% down and keep renting since its so cheap , Or do we house hack and buy one with an FHA loan ? im just not sure on what route to take i would like your thoughts on this subject. i have $25,000 saved so far to invest with .

i want to get started right away but every time i hear people say the market is going to bottom out again it makes me nervous to get my toes wet . so that makes me think if i save money now i will be able to buy more then if it goes down. but then again interest rates are so low it would be a shame to pass that opportunity up.  

one downfall to the house hacking is we both live in the country now and would hate to move into the city for a year under the FHA loan . i understand its only short term and would set us up better for the future i just have to get the wife on board with the idea .

My long term goal would be to get enough units to replace my income and  buy a 100-200 acre farm and build on that property

 any thoughts would greatly be appreciated