All Forum Posts by: Huw McDonald

Hi there,

I'm looking at condo as a buy-and-hold investment, but I cannot get the numbers to work, no matter how I cut it. So I'm wondering if I'm missing something, or the deal is actually just not worth it. If anyone is interested in going over these numbers and giving me their thoughts, I'd appreciate it:

Purchase price: $190,000

Improvements: $10,000

Closing costs: Approximately $7k

Downpayment: $19k

Interest rate: not 100% sure, but probably around 4.5%

Mortgage length: 30 years

Rental income: $1500 p/m

Vacancy: 8%

Property Taxes: $4,500

Insurance: $750

Property Management: 7%

Maintenance and repairs: $2,000 per year

Advertising: $300 per year

Utilities: $200 per year

HOA: $329 p/m

With all that added up it leaves me $558 in the red every month, if my calculations are correct. 

Anything else I'm missing, or do any of those numbers look off to you? And my other question is, under what circumstances would this deal make sense? Significantly lower purchase price? Higher rent?

Thanks in advance for your help!

@James Palin - this is super helpful, thank you!

Thank you, @Os Ruiz!

Couldn't agree more, @Ronnie Boyd!

Hey @Account Closed,

Thanks for reaching out. Nice to know there is someone nearby who is also just starting out!

What's been the most challenging part so far?

Hey @Gary White

Great to meet you, thanks for the welcome. I've started working my way through the podcasts, and I agree, they are great. Looking forward to spending more time on the site. 

Hi There,

My name is Huw McDonald and I am originally from South Africa, and have been living in Dallas for the past year. I work in the non-profit world at the moment, but I am really interested in getting my feet wet in real estate. 

My goal is to flip at least 1 property in 2016 to test the waters and my aptitude for this line of business. Ultimately I would like to move into rehabbing and flipping houses full-time.

I'm trying to soak up as much information as possible at the moment, and would love to connect with other investors in my area. 

Looking forward to meeting y'all.