All Forum Posts by: Greg Moss

@Jordan Brown

At your point I think you should read and learn as much as you can. Find out what your interested in;

Buy and Hold

Flipping

Wholesaling etc

This will come with research of what you want to do, as well as get a better idea of finances. If you are looking to do your own thing or partner with someone can give you an Idea on how much you might need for your first deal

Reach out anytime! 

@William S.

Your Cap Ex is way to high. And if you truly believe that for this property is going to have a cap ex of 25% of rent on a monthly basis simply stop looking at this property and move on to the next one.

If you are buying a property for 300k that is in good shape there is no reason for Cap ex to be this high. to have 10,000 in major repairs a year for a in shape property shouldn't be happening. 

Look for something that you can have the maintenance and cap rate at a 15-20% rate max and you should see some positive numbers. Because if you assume the high numbers like you are any cash flow margin is going to be squeezed out of a deal. 

@Matthew Schwenke, you can not use your situation fund one of those here is the eligibility requirements:

@Andre Wilson

Literally every financial number on this deal is too good to be true. There is no way it can be a turnkey.

I suggest you scroll through some of the analyzing a deal webinars that this site provides, should give you some good insight on what to look for on running numbers. Also scroll through some other deals and deal of the day post you should get a better idea of what is in line for potential returns for a buy and hold or a flip etc 

@Andre Wilson

your saying that the asking price is 24k for a turn key that is generating 1125/m in rent???????

your cash on cash return would be like 135% with cap rate would be above 40% this deal doesn't make any sense and is way to good to be true. to put that in perspective in bad areas people look for 20% cash on cash your looking at almost 7x that and after 2 years of rental income the entire house would be paid off.... doesn't make any sense huge red flags

@Nick Salemme

I think the plan and the thinking is right. I am in a similar gameplan on what I want to do. The only small issue I think you might have is finding these properties. A nice neighborhood, with solid appreciation, and cash flow all at once is really hard to find. 

You should be able to get a leg up if you buy homes to renovate, but in terms of finding that type of rental in the NYC area is going to be hard. But if you can find things that meet your criteria the overall plan is great in terms of buying cash flowing and continuing to buy.I am planning on doing the same thing over the next 10+ years

Best of luck!

@Amanda Major

Strictly from a financial point, I don't know if you mean your looking to branch out on your own and not invest with your father, if that is the case I think you are stretching yourself too thin. a 240k property with 25% down is going to cost you 60k plus closing cost, you are going to need about 70k to comfortably get this property. Even with a Heloc on currently equity you are stretching very thin.

If you are looking to branch out on your own, I would build up the cash reserves for another 6 months and then look to get into something, or look for a property now in the 120-150k range.

@Kameron Berget

Talk to realtors and property managers in the area, they should be able to gage FMV for rent and rental demand. If it isn't a high rental demand for houses deal might not be worth it due to the risk of extremely high vacancy rates. Call up 3-4 people in the area should be able to answer your question on the spot.

@Daniel Gonzalez

The biggest indicator in a buy and hold traditional rental property(being financed) hands down is Cash on Cash return. Overall cash flow numbers are irrelevant if you don't turn them into a % basis. If you are putting 60k down and want 10% cash on cash you need 500/m cashflow. if you put 120k down you need 1000/m cashflow. Although your cashflow doubled in the second one your returns are exactly the same. Now this doesn't include other factors such as building equity, appreciation, etc, but this should be able to clear up the disagreement. 

@Rashad Colton

I hate to burst your bubble but it just seems to good to be true. Maybe you are not running your numbers right or thinking the ARV is more then it will be, but to be able to buy something today for 55k and put only 45k into it for 100k (forget about closing costs) and then sell it tomorrow for 175K just isn't adding up.

I am more educated on a buy and hold investor, but if you read more into these forums you will see people flipping homes to make 20-30k after putting a lot of money and time in. For you to return 75% on your investment in a few months just doesn't seem accurate numbers.