All Forum Posts by: Jason Appel

Everything here looks really solid.

a few notes:

1. confirm that the monthly rent is actually $1775 (ask for rent roll)

2. you allocated $500 for repair costs. Do you know the condition of the roof, water heaters, etc?

3. I like that you allocated 12% for CapEx. Likely didn't need to do that high, so your Monthly Cash Flow can even be a bit higher.

4. Call a few insurance companies and get numbers on insurance policies. $92 may be right, but may be a bit higher so just call a few companies to get a more accurate estimate.

Great job finding this. Keep us posted and best of luck!

Stay safe,

Jason 

@Drew Hittner

Is this a free service?

@Bjorn Ahlblad

And on the counties website, how can you tell if they were an all cash buyer?

Hi all,

I hope everybody is staying healthy and safe during this unprecedented and uncertain time. I was wondering what methods I can use to accurately find the property owners information for a specific house/complex? 

TIA,

Jason

Hi all,

If anybody has experience with seller financing, I would like to discuss the process of seller financing. I’d love to connect with you and we can set up a call. Thank you so much in advance! ( I know this is an unconventional post, so I apologize if this is not what the forum is solely meant for)

Stay Healthy,

Jason

@Jason Arcuri

Thank you for the advice. In regards to New Britain, I have heard that is not such a great area. Which neighborhoods within the city what do you suggest? Thanks in advance

@Account Closed

What type of insurance is ideal for a rental property? 

I'll rerun the numbers with an additional 1-2% Capex and see how the numbers look.

Thanks again! Stay safe

@Brandon Sok

- The best way to figure out things like closing costs, interest rates, etc. is to get on the phone with lenders. I talked to 3 bankers today preparing for a refinance on a SFH and a duplex. It's beneficial for a couple of reasons: 1) networking connections, 2) Accurate picture of closing costs, and rates/requirements needed. Every lender is different. Today 1 bank was $250 closing costs but could only do 75% LTV whereas the other bank could do $2500 in closing costs and 80% LTV. Also, 1 lender referred me to the other.

I like this advice. IF I call the lenders, do they usually have a set number for closing costs? I guess ill only know once I call. Ill give this a shot and weigh my options. 

- Don't trust what you read or hear with regards to current rent numbers. Ask to see the actual lease agreements. The duplex I'm buying the seller told me that rents were $650 each side. The reality was they were $550 each. That's $200 per month! Ken McElroy talks about this in his book, The ABC's of Real Estate Investing. (Great read btw!)

I'm going to give this book a read. 

How could they have advertised the numbers incorrectly? wouldn't that ultimately jeporaidzed the deal once I saw the actual lease agreement?

- It's excellent you included management and vacancy numbers. Again, call some management companies to get an accurate picture of the market.

Will get this done. Thank you Brandon

@Ricardo A Perez

Thank you very much. I looked at the average closing costs on this properties state and it said about 1.3%. However, I believe thats too low, because the lenders I've been speaking to have been telling me numbers to close are much higher than 1.3%, Ill take a look into that.

If I call the towns water dept., they'll openly share that information with me?

TIA

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hi all, 

I found a deal in one of the markets I am researching. 

A few things I want to point out based on the numbers I inputted. 

1. my Loan Interest Rate of 4.25% is strictly an estimate, but I figure with the decreased rates right now (3.50%-4.00% as of last week).

2. Closing costs: I did $5,000. I'm not sure if thats too high/low, but any advice on calculating closing costs greatly appreciated.

3. I did a small repair cost of $1,500 because the description of the property tells us about the new windows, flooring, plumbing, electrical, water heaters, gas furnaces etc. 

4. The rent amounts I put in my analysis is based on the information I found on Redfin.com. It gave a breakdown of the exact monthly amount for each unit (3 units) and their lease expiration. 

EXPENSES:

$50 for garbage: How can I confirm a number on garbage?

$170 for Water and sewer: again, is there a website with public information on water usage and price? 

$85 for Insurance

5% for vacancy, 5% CapEx (reminder: 2016 renovation), and 5% repairs.

I did 10% for management, as I would likely be hiring a PM.

Please don't hesitate to give me HONEST advice on my numbers. I am learning and want to continue to learn the right way.

Thank you very much in advance.

stay safe and healthy during this time.

Jason