All Forum Posts by: Joe Fornasiero

Jeremy S. That's exactly what I was thinking/planning on doing. Pay cash then refi to 135k. Since this would be my first deal I think it might be worthwhile to have something that's easier to manage to get my feet wet.

Owen D. Thank you for your response. If I take into account the changes you suggested my cashflow drops to around $100/mo and approx. 4.7% COC return does this still seem like a decent deal?

I found a home in my neighborhood while walking/driving for dollars. The home is FSBO. Does this look like a decent deal? Market value: $135,000 Offer price: 120,000 Home is fully renovated and I plan to manage the property myself because it's right down the street from my primary. A class neighborhood. Rents would be approximately $1350/mo. Vacancies 8%-$108 Maintenance 5%-$67.50 Capex 5%- $67.50 Taxes- $192 Insurance-$100 P&I (20% down) - $475 Total cashflow: $340 COC return: 16.32% Am I missing anything?

I would guess somewhere around $10-15k. This also depends on the neighborhood.

Personally I would pass on the deal. Not sure if you included capex in your maintenance/repair estimate. That comes out to around $115/mo in cashflow with 20% down. Most investors try to get a minimum of $100/door with 0% financing to help give a better idea of what the purchase price could be. Is there anything that could be rehabbed/upgraded to increase rents?

How much did you pay for the property? I'd still recommend cutting your losses and sell

@Tim Puffer

My last deal fell through because my lender was on vacation and took to long to get my preapproval letter. I went to put in an offer only to find out that one had been accepted that morning. Basically bad timing but it happens. I was looking in Dearborn Heights as the cashflow seems to be better out there than in Brighton/Howell. I live in Brighton currently. The price point seems to be high for newer investors like myself unless I was to house hack or purchase a new primary and rent out my current home. I'm looking for higher cashflow as I don't want to bet on appreciation although I believe Brighton and Howell will continue to appreciate at a solid rate. 

I'm looking for input on what people would recommend when getting started. I recently had a deal fall through on a duplex so I've started looking at SFH's in the area. Most seem to be in B class neighborhoods fully updated for around 50-60k and rent anywhere from 950-1250/mo. For those who have completed their first deal, would you recommend going the SFH route because it's lower turnover and less time commitment? If I go the SFH route ideally I would like to purchase three rentals within the next year. Most seem to cashflow around $300/mo after factoring all expenses

Ehab Shoukry Congrats! Way to take action quickly and build your portfolio. What area do you invest in?

I would recommend reading the following: Rich dad poor dad, The millionaire real estate investor, The ABC's of Real Estate Investing, and searching the BP forums. This will help to build a foundation on REI