All Forum Posts by: Glenn Espinosa
Glenn Espinosa has started 29 posts and replied 423 times.
Sounds like a great deal Christopher! I would have never had the cahones to attempt something like that while in school.
I am a recent grad however '10 and looking to do something similar to yours (minus the complete rehab).
Could offer more insight on your operating expenses and how you came up with your cash flow? I'm curious as to how much you set aside for vacancies and repairs... Did you follow the 50%, 2% rule?
Post: First deal analysis
- Rehabber
- Alexandria, VA
- Posts 446
- Votes 171
Thanks Uwe. I feel like I've searched up and down my local area and not a lot of properties are coming out better than this one... There are the rehab houses which will offer much better cash flow but I don't have the capital at this time for any of those.
Does anyone have any insight into the Hampton Roads, Norfolk, area? I do admit I should have offered far less on this property from the beginning, however.
Post: First deal analysis
- Rehabber
- Alexandria, VA
- Posts 446
- Votes 171
I am a military officer looking to invest in real estate. I started my research with the goal to owner occupy a multifamily home and live for considerably less that what I am paying for rent now while also building equity on a property.
I will be financing through a VA loan and providing 0% downpayment.
Basically I have given up on the prospect of living for free and have accepted the notion that wherever I end up living I will have to pay myself in order to cover expenses (if that makes any sense)... I am in the Hampton Roads, Virginia area.
I am now in the process of signing out a contract on a 4 unit quad 1 block from the beach. The asking prices was $260,000 and we all but settled on $220,000 +seller pays 6% closing costs after my initial offer of $210,000. The building is in good repair, the 1 unit that I saw was well maintained and would only require small cosmetic fixes. The units are renting for $598 and are all currently rented and on a month to month contract, the tenants do not want to leave. Scheduled annual gross income would be $28,704 and after an 8% vacancy, $26,408 effective gross income. I would be moving into 1 unit and paying myself $598 a month. Property taxes were $2850 in 2010 and insurance quotes around $1650. Owner pays water and a high estimate is $3500 yearly. I've budgeted 10% for repairs or $2641 yearly.
All told
NOI = 15687
P&I = 14043
Cashflow for first year = 1644
thoughts?