All Forum Posts by: Adam Furlough

If you are analyzing a deal based on cash on cash return (100% financing), what kind of positive cash flow should you expect/accept? I know that many people on here say that $100 per unit positive cash flow is acceptable.

So if you are analyzing one of your deals, does your property have to receive $100 positive cash flow per unit at 100% financing or after the down payment has been included?

Including the down payment would increase positive cash flow.

I know there are many other factors that make a property acceptable but I just want to see how people calculate their potential cash flow on a potential deal.

Any help would be greatly appreciated.

thanks everyone!!!

The company is called Platinum Properties Network and they are located in Costa Mesa, California. I stumbled across one of their podcasts and started listening about 6 months ago. The owner of the company is Jason Hartman. Platinum offers properties to investors in certain markets in the US. Their sales pitch is that they set you up with property managers and they only offer properties in "profitable markets". They preach the buy and hold strategy and diversification in several markets. The podcasts that I have listened to are very informative and Jason Hartman appears to be a very experienced investor.

Has anyone had any experience with purchasing properties from this company?

SFH that is a potential deal.....

Purchase Price - $75,000
Gross Rents - $995
Debt: (30 yr 7% $75,000) - $498
Operating Expenses-$498

$995-$498-$498= Break Even

Putting 20% down....

Purchase Price - $75,000
Gross Rent - $995
Debt @ 20% down- (30 yr 7% $55,000)- $366
Operating Expenses-$498

Cash Flow = $131

Does this look correct?

Is this considered a bad deal since the property didn't cash flow when the down payment wasn't included?

When analyzing deals, I see that many people analyze the deal and amortize the mortgage based on the asking price. Why wouldn't you analyze the deal after the downpayment since that will change the amortized mortgage payments, therefore, decreasing the monthly payments and increasing cash flow?

Just a thought...total newbie :roll:

Hello everyone,

I want to know what people think about model lease backs..

I am currently looking at one in the Charlotte area and the builder has agreed to stay there for at least one year. The house will cash flow immediately. From what I have read, model lease backs are usually good deals if the house appreciates during the time that the builder is there.

Here are some of the other things I am looking at...
90 notice when the builder moves out
builder must recarpet and paint when they move out
how fast the builders are selling their houses inside their community
comps of homes inside the community

I would appreciate others inputs...

Thanks