All Forum Posts by: Account Closed

@Jaime Barragan that is some good advice and referral for an A/C replacement. My good friend does A/C and he always talks about doing it for 6k...

@Laci J. is your rental east or west of the Loop 375? It is very low cost area if you are west of Loop 375 and I am looking in that area also.

@Lynn Bown

This is a very good spread sheet! Seems as was mentioned before by @Mike H. that unless the property can be purchased around 65-70k putting it right around a 70% LTV this is a NOT a deal, then and only then you can cash flow around 100/month.

I guess I will mention a Warren Buffett phrase,

"What’s nice about investing is you don’t have to swing at pitches. You can watch pitches come in one inch above or one inch below your navel, and you don’t have to swing. No umpire is going to call you out. You can wait for the pitch you want."

@Laci J. do you live in the east or west El Paso?

I know that in east EL Paso North Zaragoza is the fastest developing area.

@Lynn Bown

In El Paso, we have little in the way of natural disasters unlike Florida (I moved from Florida). My primary home is around 170k and has a 500/year premium. My house in Florida was 130k and had a 1200/year premium. Taxes are more than Florida here but cheaper insurance helps a little.

@Lynn Bown

 You are using the higher end of the rental range @ 1050/month, I doubt I would be able to get that, more reasonable is 900-950/month

Also, in your spreadsheet, what is the difference between repairs and capex?

@Jaime Barragan

Just curious on the AC/Heater change out price? Where are you getting that number from? Do you have guy that can do it for $1,000? I know A/C replacements are around $5,000-7,000...

@Laci J. I agree with you about the new builds driving down the appreciation, I also feel this is why a rental needs to cash flow from day 1 with little to no assumption of appreciation.

I have not seen the part where you say new builds are sitting, in the east side a new build will AT MOST sit for 1-2 months and eventually be sold. The new builds are ranging from 90/sq ft to 120/sq ft for the high end.

Mike H. this is good advice about getting the property at a discount. The 70% LTV or Loan to Value is that including or not including your downpayment? I am assuming it is full in what you invested.

It seems the house is NOT selling at a discount, it is hard to get comps in the area because I am in West Texas (EL Paso) and unlike Florida (where I moved from) I think the recent sales prices are banned from being public information. If I look at what houses are currently selling for, around $85/sq foot this house is not a bargain or overpriced. However, it has been on the market for 178 days, which I feel is an advantage.

On the rental price, there is a house slightly larger and with better landscaping and backyard on the rental market for $950/month. I would say $900 is a good target rental price. 

On the remodeling, this house will take around $5,000-$7,500 to get into a good rental I would not be ashamed of renting out.

After listening to your opinion, it seems this house is a risk at 91k, and should bargain for around 65k which I have NO IDEA this property would sell for this but rather 80-83k seems more reasonable with a quick close.

If I use 20% down payment it is $350/month mortgage.

I currently have a primary residence and this would be my investment, the property is not in bad condition, needs painted walls and cabinets, new appliances and carpet. How much is good to budget for a 1200sq/ft home? I would figure around $3500.

I have not investigated much about financing an investment property, if 20% is required I would happily put that down. I know 20% is the standard down payment however, I always seen the no money down blah blah blah. I felt 15% was a comfortable down payment and still have decent cash flow.