All Forum Posts by: Jason Genovese

I entered an example flip into my own calculator and into the bigger pockets to compare.   Unfortunately, the bigger pockets calculator shows a number about $5,000 higher than my spreadsheet (25% higher), with the same input numbers and I cannot figure out why, and its driving me nuts.   I am sure my spreadsheet is correct as I can see all the numbers and calculations.    I also think the bigger pockets calculator is right after being reviewed and used by so many people.   So I would guess I must not be understanding something or entering in data incorrectly.    I made screen shots of everything, but don't see a way to attach a file so I will just enter what I can.    Can anybody figure out how the BP spreadsheet is calculating the profit with the numbers I entered?

Thanks --  Jason

@Dan D.    I don't really know the difference between long-term cash flow and long-term wealth.   I am not expecting on appreciation on these house, even though I can't imagine how they would continue to depreciate much more than they already have.   I guess I'm after long-term wealth but it seems like long-term good cash flow is about the same thing. 

@Joe Villeneuve I guess I'm hearing you say that the cash flow might not be as good as my initial thoughts due to increased maintenance costs in these low income areas.   I can certainly double my projections are maintenance cost.   As I'm thinking about this, since most of the area is rentals, I'm guessing there must be some investors making this work, or perhaps they are like me, they are trying this area for the first time and may have made a financial mistake.   There are quite a few homes for sale in the area....

Hi Bigger Pockets,  

I am not sure if this topic belongs in this forum or not. 

This is my second year of investing; I have rented one sfh, flipped two houses and currently renovating a third house with the intention to sale.

I am considering buying a home with the intent to hold in a town that is not so great.You can pick a home from $20,000 to $40,000 that does not need much work with rents ranging from $600-$900.The cash flow after 8% vacancy and 10% PM, and other expenses is around 45% for the deal I’m looking at assuming 20% down for financing.

 Btw, this area is not a “war zone” and boarded up houses, it is just mainly low income and higher than average crime rates.I can look in better neighborhoods/towns and should be able to come up with cash flow numbers between 20-30%.

I am a softy, and tend to believe people at face value so I would be using a property management company.  My question, what is your opinion investing in these neighboring’s that are mostly rentals with the majority made up of section 8 and welfare?   Should I stick to lower rates of return or give a high cash flow, and more risk a try?

Thanks,   Jason