All Forum Posts by: Hau N.

@Wade McMaster I used rentometer to estimate the rent.  A 2 bedroom apartment nearby is going for $1400/month.  So I think it conservative but safe to use for analyzing this property. 

@Yi Lin Thanks.  I'm glad I found it too. :)

@Kevin Nguyen The schools in this location have always been very good.  The National Spelling Bee winner, Ananya Vinay, of 2017 goes to a school in Clovis Unified District.  Thanks for reminding me of these deductions associated with the investing business.  Amanda Han, Brandon's CPA, talked about this recently in the podcast. 

@Lesley Resnick Thanks for the reply.  I'll know who to call when I want to invest in Jacksonville. :)

@Linda S. Thank you.  Most responses so far say walk away except for two.  I don't think the profit (if any) is worth flipping that house.  Good thought though.

@Matthew A. Thanks for crunching the numbers.  I appreciate it.  I don't think rent will remain the same if the house value doubled.  Assuming if I were to lose $225/mo x first 5 yrs, then that would be around $13K instead of losing $81K.  That would make it 507K + 68K (81-13) + rental income of $150/mo x 25 yrs (equals 30K) ===> 507+68+45 => 620K.  This is still less than $630K investing in stock.  lol  Basically, you're saying I need to make at least $200/mo on a house like this to even worth considering investing.  Am I correct?

Thanks for the clarification. My wife and I have 401k from our employer. I'll open an solo IRA if I ever worked as an independent contractor.

 I hope that you had friends helping you out carrying those cabinets like when they helped remodeling your house.

@Account Closed Thank you.  You asked many wise questions that I have not looked into in depth.  For what it is worth, the Zillow estimation of this home was $337K in Dec 2007 (a year prior to the crash) and it is now $311K. The lowest it went was $184K in Dec 2011.  I have to do more research on the rent market in this area in the lat 10 yrs.  Good teaching point!  It is these kind of suggestions that I originally made this post.  Thanks again.  

lol.  I should put 50% instead of 50.6% because I can never estimate to a 10th of a decimal.  Tax ($3200/yr), insurance ($450/yr), 10% property management, 10% maintenance, 10% cap ex.  All that plus an 8% vacancy.  

Thanks David.  Yeah, it doesn't hurt to review Brandon's youtube video on that.  Tax savings is out the window for us.  We make more than $100k/year to take advantage of depreciation.  We can use it to subtract rental income to zero, but that's about it.  I can't use depreciation to deduct income from our W2s.   Perhaps deducting mortgage interest is of benefit. 

Thanks @Bradley Chiakas, @Benjamin Aaker, @David Michael, @Gary Nelson, and @Liwen Gu.

I like to learn the business hands-on so I don't mind managing. I look forward to learning the ins/outs of REI. I think one of the blogger wrote about this recently how we all should be managing our properties. :)

Gary, this house went into pending but fell through due to financing issues so it was placed back in the market. 

@David Faulkner

@David Faulkner Thank you for the input.  I'll definite take it into consideration in my future deals. 

Liwen, you found the house?!  I'm glad you went that far to look for it. LOL.

True. I never considered REI until recently. Most of money are in the stock market. An RE investor I met at the gym instill the REI seed in me. He has $2 mil in REI and said I should really look into in. I have to say he was right. Returns from REI can be quite impressive and the financial independence prospect of REI is certainly appealing.