All Forum Posts by: Ignacio Linares

@Evan Polaski Hello Evan, what would you recommend I allocate to vacancy and CapEx? I generally hear it's very hard to calculate Capex but can be done in a itemized/life expectancy method. How would you recommend calculating this expense? Also how can you pull this estimate when you're in begging stages of just analyzing deals?

The mortgage payment is $345 and sits in a C class neighborhood. The biggerpockets rental estimator calculates rent to be around 1000, but I wanted to be conservative and chose 850. Am I able to pull good rents in C class neighborhoods? I would like to purchase in B- but my budget is limited for the time being. Thanks for the advice!

@Brandon Goldsmith I'm looking in C-/B- class neighborhoods. Mostly North Linden and the weet side of Columbus

@Remington Lyman Hello again Remington! What percentage would you recommend I allocate to the vacancy expense? Thanks for helping me out in these past few posts.

@Marc Rice Hello Marc, for leasing fees how should I factor that into my analysis? Should I increase my property management allocation? I hasn't considered the tax readjustment, so this happens every time a property is sold correct? Thanks for the input!

@Kenneth Garrett ahh yes I forgot to put the mortgage, so the mortgage comes out to $345/month. I didn't add any rehab costs because I figured I'd know that when I do the inspection, which is what I'm trying to figure out. How can I know what needs repairing or how much those repairs will cost when I'm just analyzing the deal?

Regarding the Capex items, it would be a nightmare if something breaks and affects my cash flow for many years to come. Perhaps this is where you can negotiate the price with the seller? The market I'm looking at seems to be appreciating rapidly (Columbus, Ohio), so it would make sense to BRRRR in my opinion. However, since this will be my first investment property and I have no experience in either purchasing or rehabbing, I thought I'd avoid this for now and stick with light cosmetic repairs.

Thanks for taking the time to answer my post

@Joseph Mah Hello, thanks for the reply. How do you calculate repair costs when you haven't inspected the property? I always figured repair costs can only be estimated once an inspection has been done. As for closing costs, I'm just following the BP calculator suggestion of 2% closing costs. In your experience is it perhaps more? No matter how many numbers I run, especially in the Cleveland market, I barely find any good cash flow I wonder if I'm calculating something wrong. Again, thanks for the input!

Hello Everyone, can I please get some critiques on my analysis? I want to see if I'm running my numbers correctly

SFR in Columbus, Ohio

3 Bd 1 Bth

Sq footage: 768

Purchase price: 85,000

Closing costs: 1,500

Down payment: 12,750 (15%)

Interest: 4%(estimated guess)

loan term: 30 yrs

Rent: 850( Conservative avg)

Expenses

Property taxes: 46/month

Insurance: 70/monthly

Repairs: 85/month (10%)

Vacancy: 85/month (10%)

CapEx: 127/month (15%)

Prop. Mngmt: 76/month (9%)

Utilities: I'll have tenants pay all utilites

Total Expenses: 834

Estimated monthly cash flow: 15 dollars

Did I run my numbers correctly?

Any input would be greatly appreciated!

Thank you all for your recommendations! Much appreciated

Hello everyone, I'm currently shopping around for some insurance agents, lenders, and property managers in Columbus, Ohio. Any recommendations? Thanks!

@Remington Lyman makes sense to start off solo first. As they say, experience is the best teacher right? Thank you for your insight