All Forum Posts by: Thomas Parrott

Thank you for the responses, checking out now

I'm considering spreading outside of the area's I know in search of some better deals.

Any things I should be looking at other than the obvious?

gotcha, thanks for the assistance!

ah, i may have miss worded my post

i am not looking to predict, but just entering actual data i have into a spreadsheet to get a rough number

the before taxes would be exact sense i have all of the expenses, mortgage payment, insurance, property taxes etc etc and i put the .25 as thats my tax bracket

so based on actual data input would that be right? you would calculate the after tax flow as what you would actually get back and not the actual write off, right?

edit**
the point of this is to track past performance of existing properties

im trying to make sure i have a ROUGH (i know it isnt going to be exact) estimate on cash flow

im just trying to make sure my basic formula is right so i can track the performance i have already had easier (i have not taken money out to upgrade properties etc so i am not putting that into my equation)

im also listing all costs as repairs just for simplicity (would include management fee's, legal fees, & other write off capable items)

flow before taxes = rent received-mortgage payment- insurance -property taxes - repairs

flow after taxes = flow before taxes + .25(mortgage interest+ insurance+ property taxes + depreciation+ repairs)

i say .25 multiplied by the sum of all of those listed because thats the money you are going to actually see, if you depreciate $3000 you arent going to see $3000 so its not really cash flowing into my bank

could this be an ok way to get an estimate, or are my theories wrong on how im calculating this?

When talking about getting 3% a month are you saying 3% of total purchase price, or 3% profit on your down payment (money invested)

Thanks for the response,

One other thing, when you guys say your using the 3% rule you are getting $1500 rent a month off a $50,000 property?

my thoughts have changed pretty significantly on how i want to handle buying properties over the past 5 months. Im just starting out, i bought my first property a year ago, and its a 1% property and it does fine. Its only a small fraction of what i want though.

I decided i need more properties. I have scouted possible MLS properties and i cant break 1-1.5% returns.....earlier in this thread some one said "your not doing enough leg work, you should hit the streets"

i still have a ton to learn, some one please school me on how to find properties that are having some serious returns.

i have ambition & drive flowing out of my ***, but my way of finding properties is one dimensional....MLS is my only source at the moment.

my co-worker is my realtor, what do you mean by pocket listings? stuff that hasn't hit the market yet?

ive spent SO much time already scouting MLS properties and i am realizing that is not the way to find them, most properties at the price im expecting the buyer to take would only be 1-1.5%

any help is appreciated in advance

lets say i start a LLC up.

i buy a property in my name, and transfer it to the LLC and the loan defaults, can a judgment be put on me personally if the bank doesnt get their money back?

in a LLC, lets say i got a divorce, would my assets in the LLC be up for grabs?

if the LLC is pass-through taxed, will i still file my taxes like i do now, just with an added tax form stating what the LLC made/lost?

thanks for all the reply's

i wasnt clear, thats what i meant; not having outside assets at risk from renters in units under the LLC

i will definitely check and see if my state allows for online filing for the llc