All Forum Posts by: Freddy Pettiford

@Elizabeth Colegrove

Sorry for the late response, i had my alerts set up incorrectly..

@Brian Smith After talking to a couple investors in this area this seems like the norm. Im wondering what if i managed the property by myself to increase cashflow. The property is literally one street over in my subdivision. I also may be able to get into this deal with almost no money down instead of the 3k i stated above. 

@Elizabeth ColegroveTheres two ladies in my neighborhood who have lived here for 20+ years and they tell me that most of the houses here people own. I only see a few "For Rent" signs in the sub division. I did not know there was such a group on Facebook, but i just sent a requested to join. Thank you.

@Jay Orlauski Thank you for the response. Like i wrote to Brian above, i was thinking maybe i could try to manage the property myself since it is so close to me. Also this would give me more cashflow and take my net income up to $2520.

Thanks everybody for the advice. I'll keep you all updated 

@Alexander Felice Ok that makes sense. Similar properties in the area are renting for around the same as this one. $775 - $825. It is about 5 minutes outside the Riley gate.

Does this look like something I should pursue or should I keep looking?

What would make this a even better deal?

@Alexander Felice I multiplied the Monthly Cash flow by 12 and got $1380. Then I Divided The cash I used to close; $3000 by the $1380....Ok I see what your saying now.

I put one to many 0s on the net income...So my CoC is only 2% if my math is correct.

Thanks

Hey Everybody,

I'm here in Fayetteville NC, Looking at a potential property that I would like to turn into my first rental property! This is my first time trying to analyze an actual property so here are my numbers.

Purchase price:60k

Cash to close: ~3k(Im not totally sure how much I will have to bring to this deal as of yet.. so here's just an estimate)

Income;

Monthly rent: $775

Monthly Expenses;

Mortgage: ~$300

Property Tax:$95

Insurance:$75

Property Management: $75

Vacancy(10%): $75

Repairs(5%): $40

Total Expenses:$660

Cash flow :$115

Cash on Cash Return : 21%

Am I missing anything? Adding to much in an area? Any advice would be greatly appreciated..

Is this a good number for cash flow?..$115 does not seem like a lot..

Thanks in advance for all the feedback.

Great advice everybody, your comments opened my eyes a lot. I still have a a while to decide which route to take, and I will most likely end up trying to sell the house. I already see plenty of "For sale" and "For rent" signs in my neighborhood. Im not sure if that means that it is hard to rent or sale in this neighborhood? Or if everyone is just looking for a way out already?

@Alexander Felice I am about 5 minutes from post, outside of Riley Gate. Yes there are a ton of improvements going on in our town right now..none that seems to be near close to my location lol. Would you recommend me just rent it out when i PCS or try to sell it? Because if i have paid 10K  into the house when i PCS to another state and can still sale the house for around what i bout it for, then that is still a good situation right?

@James Slaughter Thanks for the advice. I was definitely ready to start improving my house 100% thinking that maybe i could sell my house for more than anyones on my street. Most of the houses on my street all are valued at 80-90k right now.

Hey BP,

My home that i currently live in i purchased for about 80k in North Carolina using a VA Loan. I have only lived in this house for about 6 months and only plan to be here for another 2 years. At that time i will be moving to another state due to being in the Military. My nextdoor neighbor has live in this neighborhood for over 20 years and told me that my house has been bought and sold multiple times and that it always sells for very close to the 80k that i bought it for.

My question is...If i want to get the most profit out of this house what options do i have? Should i start improving the house and try to raise the value, in an attempt to sell it for more when i leave in a few years? Or should i plan to hold on to the house and rent it out? 

@Renita Kerr Welcome to Bigger Pockets!

@Jonathan Taylor SmithCheck this article out. I think it answers your question in good detail. 

http://www.veteransunited.com/valoans/second-tier-entitlement/