All Forum Posts by: Savannah Leigh

It sounds good....but without knowing numbers it's hard to tell.

roughly
1,000
-300 maint/vacancy pad
-100 profit
-100 management fee
- 200/mo (estimated) taxes
-100/mo (estimated) insurance & misc
assuming tenant pays all else
would cover about $200 in mortgage, or roughly $35 k.
GO FOR IT>

In my market, one of the few I've found you can get cash out each month, here's my basic formula:
Total rents
-30% for Maintenance and Vacancy
-10% for management (even if I'm doing it, it has value)
-$100/month profit PER UNIT
- all hard costs (except mortgage)
The remaining number is how much I can spend on a mortgage...and therefore gives me the value of the property

My offer, if it were my deal, wouldbe no more than:
Gross income
50,000
-15,000 maint & vacancy
-5,000 management
-18,000 hard costs (no insurance)
-6,000 insurance
-14,400 profit (100/mo/unit)
--------------
58,000
OOPS, I can't offer on this property, it's upside down.

Now, in my market, a 1br apt rents for 450 plus utilities, so the 330's are probably dead low...but on given numbers I'd stay away

4,000
30000

In my market, one of the few I've found you can get cash out each month, here's my basic formula:
Total rents
-30% for Maintenance and Vacancy
-10% for management (even if I'm doing it, it has value)
-$100/month profit PER UNIT
- all hard costs (except mortgage)
The remaining number is how much I can spend on a mortgage...and therefore gives me the value of the property

In my market, one of the few I've found you can get cash out each month, here's my basic formula:
Total rents
-30% for Maintenance and Vacancy
-10% for management (even if I'm doing it, it has value)
-$100/month profit PER UNIT
- all hard costs (except mortgage)
The remaining number is how much I can spend on a mortgage...and therefore gives me the value of the property

I'll do an auth letter and try it....who knows? Maybe the bank will wake up, take their lumps and we can make a few grand>