All Forum Posts by: Joel Wilson

Thank you for the reply! I assumed that my insurance calculations were low,  but i did not realize that the others were. What percentage of the monthly income should Cap Ex, Repairs and property tax be? The vacancy rate it that area is surprisingly low, and thats why i put it at 4%. Should i increase that just for safety sake? To figure out the property tax, i just multiplied the sale price by .0125, then divided by 12. Thank you again for taking the time to help!

Hello, i would greatly appreciate any feedback. I am new to analyzing deals, and i have calculated this property ( http://www.loopnet.com/Listing/19964090/1215-and-1... ) as getting a cash on cash ROI of 20% with a downpayment of 25% - $455000. Accounting for mortage ($6619/month), pm at 8%, CAP EX & Vacancy at 5%, Insurance at $500, taxes at $1895 (all per month), this property is cash flowing at $7950/month. On paper it looks like a great deal in this current market. My question is: what could be a reason that it has been on the market for a while and that no one has bought it yet? Could it be a bad inspection? Any list of ideas would be greatly appreciated for a guy learning. Also, if you believe i am calculating wrong on paper, please let me know!

Thanks,

Joel

Check out 124 East 13th street Marysville CA 95901. Its a 28 unit apartment cash flowing at 12k a month, with a Cash on Cash return of 28%. 

I'm a 20 year old college student who is saving for real estate investing. I will be doing both comercial and residential investing. Does anyone know (or can direct me to) a way to practice analyzing deals? I want to have analyzed so many, that when the time comes for me to begin investing, the analyzing will be a no brainer. Can i use something like Zillow? Is there enough information to properly analyze a property to determine if it will have good cash flow using someone like Zillow? 

thank you for your responses