All Forum Posts by: Gary Chapman

You state that you have a down payment of 70k, so I am assuming you have a mortgage on the property, in your expenses you do not list principal and interest. I think that is what is missing from the information you provided.

You are right, I was not including in my calculations.

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Quote from @Bruce Woodruff:

You need to use either yearly or monthly numbers, not both, you're confusing yourself. But even adding in a mortgage (166k @ 6% for 30 years = $1000 mo) the numbers still aren't bad.

I would triple check your expenses, both monthly and for your renovations. This is where most people screw up. Do you have a solid proposal/estimate from a Contractor or are you guessing at the $70k?

And yes, you need management fees, vacancy rates, CapEx savings, etc....

If it were really that good of a deal, it would already have been snatched up most likely...

This home is already in my portfolio(purchased 4 years ago as a house hack but have since rented both units) and I'm hoping to leverage what I have in it to finance the next purchase. Mortgage payments are 715/mo @ 3%.

I manage, have 5% vacancy and $3,000/year budgeted for maintenance.

I just want to have realistic expectations for the next property as what I'm reading tells me these numbers that I'm calculating with my first property are not what I should be expecting with the next.

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Quote from @Owen Dashner:

Couple thoughts. So you are putting $70K down and putting $70K into the property? Are you going to leave all $140K into the property, or are you going to refinance to get your money back out? If you are leaving that much money into the deal, it is a terrible COC return. If you are doing a refi, you didn't list any debt service payments or refinancing costs.

Vacancy, lawn care, snow removal, property management fees, principal, interest - these are expense items I did not see listed in your post.

What is the "other" income item for $300 that you listed?

I'm looking into a HELOC but haven't pulled the trigger yet.

I didn't include all my numbers in my post so here is a more detailed breakdown.

Purchase price $236,000.

Down payment $70,000,

Reno $70,000.

Vacancy $2,160,

Total yearly expenses(taxes, insurance, utilities, maintenance, lawn/snow care) $13, 350.

Monthly rent $3,600, Other income(pet fees) $300/year.

I took a property management class and used their operating budget chart, it doest not include principal and interest payments. My total monthly payment is $715.00, am I supposed to be deducting this amount to get an accurate cash flow?

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I'm a new investor with one property in my portfolio so far. I want to invest in another property and so have been really crunching numbers and analyzing my last investment. Honestly, I'm feeling a bit confused about my calculations and either feel like I hit a jackpot or am missing a big piece of this puzzle. I'd like to share my numbers to see if I'm calculating correctly or not. Property is a duplex.

Purchase price $236,000

Downpayment $70,000

Renovations $70,000

Monthly Rent $3600

Other income $300

Total Expenses $13,350 (taxes, insurance, utilities, maintenance)

So if I'm not missing anything I'm seeing a cash flow of $19,410 which would be 800/door a month. Everything I'm reading says 200/door is good, what am I missing?

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All Forum Posts by: Gary Chapman

Gary Chapman has started 1 posts and replied 4 times.

Post: Good numbers or miscalculations???

Post: Good numbers or miscalculations???

Post: Good numbers or miscalculations???

Post: Good numbers or miscalculations???