All Forum Posts by: Erion Shehaj

This is an excellent discussion. I started addressing some of the arguments that various users have made about my article but then it got too long to post as a comment so it became a standalone post. :-)

To Domino or Not to Domino - That is the Question

This is an excellent discussion. I started addressing some of the arguments that various users have made about my article but then it got too long to post as a comment so it became a standalone post. :-)

To Domino or Not to Domino - That is the Question

Hi Mike

Thanks for the quick reply.

There's no doubt mortgage is debt - But the ultimate purpose of the breakdown I provide on the site is to give people an idea what the cashflow might be. Many of the factors you mentioned are valid, but it would be hard for me to estimate since the cost would vary significantly from investor to investor. For instance, many of the investors I have worked with in the past few years, have managed their own properties combined with purchasing a home warranty policy for the big stuff. I agree that a value has to be placed on the time spent by the investor managing the property - but there's no method for that to be estimated with reasonable accuracy - some people value their time more than others. We try to limit capital expenses by purchasing relatively newer construction homes.

So I guess what I'm saying in a nutshell is that the breakdown is supposed to be a starting point upon which investors can build their own figures and estimations for costs. But in our experience with multiple homes, our cashflow estimates have been accurate within 40 dollars or so.

I know I'm super late to this party - but better late than never.

@MikeOH Care to explain your math - What expenses did I leave out? Also, asking price was 93,000 - At the time you needed 10% down to purchase investment property with conventional financing so your loan amount is incorrect.

@Dwayne Please don't add insult to injury. YES - our tax rate is pretty close to 4% :-)

@Jason If you ever have a question about any deal we post on our site - don't hesitate to call and I can explain how we get to the numbers. We have paperwork on everything.

Hi Jason

I know this is way overdue but I just stumbled into your post.

Thanks for the kind words about the site - We try really hard to make it easy to navigate and hassle free.

As swamped as we've been with our main foreclosure page we have neglected the rental income page a bit. Would you guys like to see that updated more often? Any other suggestions we might incorporate to make it better?

Look forward to your reply.
Thanks
Erion