All Forum Posts by: Eric DeVito

Hello, just wondering if anyone has recommendations for a good realtor and/or Property Manager in the Philly, PA area.

Just used the Fix & Flip Calculator, plugged in some numbers. Tried to get the comps, very few to comps to chose from. Home is Bank Owned/Foreclosure, in a bad part of town if that matters or not. Pretty much needs total rehab from the looks of some photos. Have not seen it in person.

4 Bed/ 2 Bath - Single Family 2 story Home

Bank Asking: $90,000

ARV: I came up with an ARV of $222,000, but I put it as $180,000 in the Calculator, I am being very conservative.

70% Rule: $180,000x0.7 = $126,000

Repairs: $40,000

Purchase Price: $86,000

Holding Cost Per Month: $735.33

Closing Cost: $3,000

Total Days Held: 120 Days

Total Projected Pre-Tax Profit = $36,000.55

ROI = 56.83%

Total Cost of Project = $129,000

Total Monthly Expenses = $735.33 (Includes Mortgage Payment)

Down Payment = 20% = $17,000 @ a 3.8 Interest Rate for 30 yrs.

This is what I have, not sure if you need anything else. Seems like a good deal on paper, but I don't know if it is too good to be true and like I said perhaps the rehab cost might be more, but I was very conservative with the ARV. Thoughts/Opinions much appreciated. First time fooling around with the Calculator.

@Charles Worth

I put Vacancy at 10% which gave me $275, I suppose that's monthly at the end of report.

Capex I put at 5% which gave me $137.50 which I assume is monthly as well. Also at end of report.

@Dave Fontana

Hi Dave, yes it did include all of that and i was quite conservative with most of my numbers. Any reccomendations?

Hello all, as the subject states what Contingencies should be in a offer on a home. As a newbie looking at homes and hopefully making a offer eventually what Contingencies should I ask for or try to have in the offer.

@Matthew Cole

Matthew thank you for responding. I am sure there are some errors in my calculations. As far as the less then 1% return rate of my purchase price in rent back how did you come up with that exact number/percent? Math is not my strong suit. I am learning though. Perhaps this property is just too expensive and out of my budget? I could look out of state and find a similar property for much cheaper and then put a 20% down payment which will give me more equity and perhaps higher cashflow as well. Hard to find property here in NYC

@Brent Coombs

Hi Brent thank you for responding. Yes I could have made a mistake as I am new to this. I am not really good with percents and all that math. It is a weak area of mine, but I know it is very important in regards to investing and RE in general. I think the problem is the property is just to expensive and out of my budget for what I have in my saving now. 70 would eat up about 75-80% of my savings. I suppose that is not worth it at all then right? I would then have to look out of state and try to start a buy % hold on a cheaper multi family property where I can have more equity in which will increase my cash flow if that makes sense.

Hello all! So I found a property that I am interested in. Just plugging in numbers in the BP rental calculator. These numbers are just "guessestimates". Not 100% accurate, I tried my best for a newbie. Anyway let me know what you and if I am missing anything or if I need to adjust anything. This is the property and what numbers the calculator gave me. Thank you.

5 Bed/2 Bath Multi Family home in Staten Island, NY. Built in 1920, recently renovated top to bottom, new central air throughout house and new heating system. This was done between 2011-2012. Asking price is 349,00. It has been on market for about 340 days. In this example I put the home being sold for 320,000.

-- Also it is a two family and I looked up the average rents on rentometer then reduced the rents by 100-200 bucks a month for each unit. 1 unit will be renting for $1500 and the other for $1250. I could probably get 100 more on each though.

Purchase Price: 320,000

Monthly Income: 2,750

Monthly Expenses: 2,272

Monthly Cashflow: 477.15

NOI: 20,040.00

Total Cash Needed: 71,000

Cash on Cash ROI: 8.06%

Purchase Cap Rate: 6.26%

Other Information:

Closing Cost: $3,000

Estimated Repairs: $4,000 (I Just put this randomly, it was recently renovated)

Down payment: 64,000 (20%)

Amortized: 30 Years

Loan Interest Rate: 3.80%

Monthly P&I: 1,192.00

Total Operating Expenses: $1,080.00

Mortgage Expenses: $1,192.85

Also using 50% rule it says my cash flow will be 182.00 per month.

Not sure if you guys need any more information, I am hoping this is enough info to share to see if it is a good deal or not or if the numbers make sense. Kinda my first time doing this.

@Aaron Montague

Thank you for the example Aaron. Now with the example you just gave is that a buy and hold rental property? If so would the net Income be the total profits you receive after all the other expenses are paid off. I.E. Taxes/Monthly Payment/Vacancy.

@Aaron Montague

Thanks for the advice Aaron. Now I have a question in regards to the ROI you mentioned. How exactly do I measure that. Do I find the ROI through the BP rental calculator as well?

@Steve Vaughan

Thank you Steve, I will take all your advice into consideration.