All Forum Posts by: Maximo Flores

I can't find deals that satisfy the 2% rule... although I talked to these guys, they are flexible in the price! what price would be attractive? I spoke with him and he said 8 units that rent for 500-550 so should I offer say 350k?

Actually, this link has all the numbers:

http://www.redfin.com/WA/Tacoma/3318-Chandler-St-98418/unit-1-6/home/2755999

Thanks guys

google the MLS and among the various options, select the 8-plex in Tacoma, WA. I wanna buy it and rent out the units... any ideas?

Hello,

Please evaluate this deal:

MLS# 88359

Thanks

Hello guys,

I am trying to get started with the whole landlord deal... I also have the same question (SFR vs Multi) and I like the idea of starting out with a 4plex. However, in my area, Seattle, I feel like most 4plexes are overpriced, a lot of them are 300k-500k in a decent area/lower average and when I run the numbers, cashflow is negative per the 50% rule. However, I am seeing great deals on SFR with renting potential, so here's my question:

Do you think SFR are a good idea to start out with as long as you rent them out in pieces, either by the room or at least in two pieces (i.e. main floor and basement separate?) and that way limit 100% vacancy? Any ideas? also with the market these days, how's rental demand? aren't a lot of home owners trying to rent out rooms or their basements to try to cover their mortages? any inputs are apprecated

Maximo

Great clarification about the 2% rule! Sounds like it only works when the rent is $500... no wonder it seemed very hard to meet with the average property in my areas (which would rent for $1000)

I guess what really matters is the 50% rule and the fact that you should stay cashflow positive by $100/door/month now my questios is the following:

If I have a SFR and rent out rooms separately or if it's a split level SFR, MIL attached, etc so I rent the whole thing in 2-3 pieces... do I want to shoot for more cashflow/mo? maybe $200/mo?

Also, what if I buy a property and put say 5k in renovations, repairs, etc? do I wanna shoot for 15-20% annual cash on cash returns?

Thanks again for all the great feedback. Maximo

appreciation, equity gains over time, etc are a bonus for me but sure is nice

I agree with you, according to my calcs, seems like I can cashflow with 1-1.5% although the question is trying to get the $100/month/door

Multifamilies sound great although the ones I've seen in my area are way overpriced and in bad shape. Most of them (if not all) can't even get me 2X P&I

Anyways, how about getting a small house with 4-5 bd for about 150k and renting the rooms? or maybe renting the main floor and the basement separately and trying to hit at least 1% (and/or $100-$200 cashflow?)

Thanks for the replies

anybody has more experiences with the 2% rule? I am pretty confident I can find a deal that rents out >2X the P&I (which is derived from the 50% rule) but that 2% rule is tough... at least in WA it is

Also, duplex, triplex and 4plex units are overpriced in my area IMO (I can't see getting at least 2X P&I in my area) whereas some smaller houses with 4+ bd at about 150K could get me cashflowing but still struggling to meet the 2% rule

Any thoughts are appreciated!

basically old/cheap houses that have 5+ rooms so I can't rent them separately haha that's the only way I can make the 2% rule work

I guess what I meant was that I can find properties that rent for more than double the P&I so I can cashflow (which should be equivalent to the 50% rule, right?) although I don't know if I can cashflow 100 bucks/month/tenant (or /door) that one it's pretty tough too

Hello,

About the 50-2 rule, I wanted to ask how attainable is that rule in major cities? I live in Seattle and it's pretty difficult to find deals that pass that rule. I have been able find properties that pass the 50% rule (but I think that's thanks to the low interest rates of these days) but the 2% rule is insane lol. duplexes and fourplexes are way off the 2% rule, although some inexpensive SFU get close as well as larger 8+ multiunits.

Anybody has any similar cases? I can still cashflow with 1-1.5%. Where are you more likely to find 2% like properties in the USA

Thanks in advance for any inputs. Maximo