All Forum Posts by: Dylan H.

Awesome, congrats @Jason Castro!

Hey @Sixto Velasco! I think your predictions for reserves (which I'm guessing is your CapEx holdings?) is a good bit low. Also, it doesn't seem that you are accounting for vacancy, which I think an additional 8% would be reasonable for that.

I know the 1% rule is just a rule of thumb but I would say it's a pretty good guideline for properties around this price point. Currently you're sitting at about the 0.88% rule, which would mean you are probably going to negatively cashflow. I think using a 50% expense ratio is pretty reasonable, which would drop your NOI down to $27,630.

I wouldn't personally be a huge fan of this looking at your numbers, unless this is a value add with potential for an increase in your income. I'm currently living in Pensacola and would love to check out the property with you if you're looking at it soon!

@Brett Picher I think it's a great way to start, and it's what I have done myself, although not a duplex. I bought an SFR that does not cash flow, but it cut my monthly living expenses to ~$300/month instead of ~$1000/month. Once I move out will be a little above the 1% rule and cashflow. My thought process is that as long as a house hack will cashflow after you move then it is a great way to get into an investment property with little capital.

Looks like a great long term play @Eric Prine! Worked out nicely that you owned it when Savannah implemented the STVR certificates. I’m sure it does great at your price point as well which is awesome.

Are you using property management now with living out of state? If so I’m curious with what percentage they are charging.

@Randon D. Sander

I just used Rubnitz Thompson and Ziblut as well, they are great!

@Savannah Arroyo

I highly recommend reading The Book on Flipping Houses by @J Scott. I used it to create a bunch of checklists in google forms for estimated rehab costs, following the right steps before closing, after closing, etc. So much great info that will help you in the rehab portion of your project and just make the whole process a lot smoother and stress free.

@Duane Saipaia

Hey Duane! I think we may need a few more numbers/details to decide whether this is a good deal/idea for you. With it being your father your investing with, at least you’re safer on that front with having someone you trust to potentially partner with. Are you going to split everything as far as cash flow and equity is concerned?

Also, I would keep in mind that if neither of you are familiar with the Savannah area I would be careful about buying C class house in a C neighborhood since that’s about all you can buy with $16k as a down payment (Obviously I don’t know what your plans on financing the property). Definitely make sure you’re talking to some PM’s in the area about any potential purchases to get their perspective as well.

@Duane Saipaia

Hey Duane! I think we may need a few more numbers/details to decide whether this is a good deal/idea for you. With it being your father your investing with, at least you’re safer on that front with having someone you trust to potentially partner with. Are you going to split everything as far as cash flow and equity is concerned?

Also, I would keep in mind that if neither of you are familiar with the Savannah area I would be careful about buying C class house in a C neighborhood since that’s about all you can buy with $16k as a down payment (Obviously I don’t know what your plans on financing the property). Definitely make sure you’re talking to some PM’s in the area about any potential purchases to get their perspective as well.

@Michael Ealy thank you so much for taking the time share and including so much detail. For someone starting out, this is so helpful and provides so much value.

I would say just about any house hack is a good deal as long as you can meet or beat the 1% rule after you leave. It looks good to me as long as you plan on keeping it as a rental after you move.