All Forum Posts by: Jacob Murry

Hi ShuWei! 

Congrats on getting started. I'm fairly new here as well so take my opinion with a grain of salt and hopefully some more experienced investors can chime in as well. 

I think you did a great job on the analysis. It all looks pretty conservative. I assume it's a nice property in a pretty nice neighborhood judging by the rent. I am just curious if the $3500 in income/month is what the property is currently bringing in, or if you're counting on raising rents? I wouldn't count on there being no repair costs period. I would budget at least 5% for repairs as well as the 5% you have budgeted for CapEx. The numbers still look pretty dang good either way.

So long as you have the capital available for the down payment, reserves, etc. and financing already secured -I'd say this looks like a home run. I'm a big proponent for more of a turn-key multi-family as a first property. Helps get your feet wet and reduces risk a bit. 

Good luck! 

Hi Everyone, 

My wife and I are set to close on our first property next month (barring everything goes well with inspection), so I suppose this is more of a reactive analysis request.. Affirmation or regret - right? :) 

Quick back story: This is our first property, we just recently married in April and we've been renting @ $765/mo in the city for the last 3 years. Since this is our first property we wanted to buy something that was more turn key and would require less work and maintenance since we are pretty new to the game. 

Asking price: 319k 

Accepted offer 319k with 7k in concessions for closing.

Financing: Traditional loan with a mortgage broker 5% down 95% LTV.

Interest rate 5% 

PITI - $2086

Total cash out of pocket (down payment + our portion of closing est.) $17,000 +-

Tenants will pay gas and electric and we will pay water/sewer and trash. These expenses should be about $150/mo. 

Current rental income as is, is $2245. Two of the units are currently rented under value so there is potential to eventually bring it up to $2300. 

Our primary goal here for our first purchase was to house hack and eliminate our rent and some utility expenses and we feel like we've got that with this property. The house was a gut job 8 years ago and it's currently in great shape, it's in a great neighborhood in the city and all units are in great shape and recently renovated. We know that this isn't going to be a home run from a cash flow point while we're living here; however, it should help us save about $800/ month extra so that we can buy our first non owner-occupied investment property in the next 6 months or so. 

We plan to live here for 12-18 months (as we have to for the loan) and then move on to another house hack either in St. Louis, or back to Dallas where we have family (and do the same thing there.) 

When the property is completely rented out the numbers should be as followed : 

Rental income: $3150

Property Management: $150 - Low, I know. 

Repairs: 5%

CapEx: 5%

Water/Sewer: $150

Trash: $15

Vacancy: 5% 

PITI: Still $2086

We should be able to cash flow $300-$500/month after we move out and rent this property out. If we're still in STL we'll manage it ourself, otherwise we have a property manager we will use. Since we're getting in at such a low down payment I'm showing a CoC return of about 30%.. For a first property and trying to play it fairly conservative I think we've got a good deal here. I'd be interested to hear others analysis - if it's soul crushing, I just ask you do it with an emoji at the end :).

 Agreed! I appreciate the feedback, seems 100% accurate after diving in a little deeper. I know, I didn't want to overshare unnecessary information for you all to have to sift through. I did account for mortgage, taxes, insurance, repairs, vacancy, etc. I didn't account for property management, as I'm fairly confident in my organizational skills, free time and availability that I can handle that at least for a small, first unit. Hopefully not over-confident there :). 

 Great insight, thanks! My strategy; although still developing, is purchasing single family units at hopefully around 50-60k. I would like to cash flow at least $200/mo, although $300 would be ideal. My primary purpose isn't really cashflow, though - hopefully that doesn't sound crazy. I'm really focused on building a portfolio long-term that can help early retirement :). Don't get me wrong - passive income along the way is great.. but I'm really focused on long-term wealth. Turning 26 in August, so I've got a ways to go.. 

Thanks @Rhett Tullis! I agree. After doing a more depth analysis of what's currently renting in MWC.. I'd say even $800 is on the higher end. 700-800 seems pretty reasonable, though. Makes sense on the Edmond/DC properties.. Obviously I'd assume more capital needing to enter that market, though? MWC seems to be a pretty good starter market for the OKC investor, all things considered. 

Hello Everyone, 

I'm brand new to BP and new to real estate investing in general. I have a bit of a background in finance, but I'm still in the process of spending some time educating myself on the foundations of having success in real estate investing. 

I'll be looking to make my first deal in 2018 and my strategy will be buying and holding SFH or smaller multi-family homes (duplex,triplex, 4plex.) I was thinking for my first property at targeting the area in MWC close to TAFB, Rose State College. From the research that I've done (mind you, I'm still pretty new - so I understand my research may be a fantasy land!) I believe you can find a home in this area that needs a little work, but with loads of potential, for around 50-75k. Most of the homes that I've looked at have 3 bedroom and either 1 or 1.5 bathrooms. Comparing rent to similar homes in the area, you can be looking at anywhere from 675-1000$ per month in rent, depending on location, SQFT, etc..

Now my question.. I've estimated cash flow could potentially be $200-400 in this area. Does anyone have experience working around the MWC/ Del-City area that could provide any insight, validate my thoughts, or burst my bubble? :) 

Looking forward to spending more time on the forum and connecting with the OKC investors!