All Forum Posts by: Jeffrey Bourque

hihi :) Thanks for your thoughts Jaycee, Not sure I would call it a cash cow but I did think it was providing a opportunity. Also I have not worked out the financing yet. if I just use my cash then the Cash on Cash drops to 8 or 9% and that would be below my Cash on Cash target.

Generally speaking and of course just numbers I picked out of the air for reference when running numbers in my head, I am looking for Cash on Cash greater than 15%, high probability of long term occupancy, and no expected major Capex for 2.5 years after purchase and purchase time repairs which I would add into the cash on cash evaluation before pulling the trigger.

So there are some more details to be worked out in my head but being it is my first one and only learning what I could from youtube videos I thought I would get some feedback.

With all that said, in my head it seems like it could be a good start.

Thanks again Jaycee and Gavin for your feedback.

Hello, it is a owner passed and child wants out because they are absentee, no section 8 and the tenants have lived there already for long time 13, 6, and 4 years with no desire to leave as long as I can keep the rent same or close to same and they are willing to sign 3 year leases.

I have looked at single family houses and have not found a deal that compares. Not to say I will not find one but so far this is the one that I have been working on and it will be my first. The cash on cash number is what I liked about it and I think the Capex will not be a big factor because of the Tenants already are there and have been there and want to stay for long term so vacancy was set lower. It is a older non rehab property but things are straight and roof, plumbing, electrical are all in good working order. So yes it absolutely could use some TLC but I am hoping it will not need anything major. I will not know that until I climb under the house and into the attic etc... for inspection

The area is close to things and is not in a indicated crime location and has a very nice open lot area on the corner with it but again assuming the tenants stay and lease I am looking at that as a smaller issue..

Thanks for bringing up the concerns but I have tried to do my due diligence but do not really know is the analyzing aspect has missed something major. I have explained my thinking and again thought the cash on cash was good at 17% or maybe even a little bit more if I raise the rent to all by $50 each.

Am I looking at something incorrectly?

Hello All, I am new and this is my first attempt at purchasing a property with the intent to create monthly cash flow.

The property: Triplex Listed at $140,000 - Total monthly rent income $2,150 - Tenants want to stay and are all willing to sign new leases for 3 years - 8 beds 5 baths and 3,500sqft livable space on a 4,800sqft lot - Heat and electric paid by tenants and water trash paid by owner $180 month - I have managed to talk the selling price down to $105,000 with a kick of $10,000 for closing and commissions so $115,000 all in - Building is in fairly good shape according to pictures and questions but have not done a inspection yet - some general maintenance repairs are needed according to the seller but nothing that seems to bother the tenants. - Taxes are on the higher side at $6,000 year

My Numbers: $115,000 putting 20% of my money $23,000 and finance the rest with total expense of $1,834

Monthly expense numbers: Future Maintenance 13% $273 - Vacancy 5% $105 - Property Insurance 5% $105 - Property Taxes 23% $500 - Property management 10% $215 - Office/Travel/Legal 4% $84 - Mortgage 26% $552 - 

Monthly Cash Flow - $316 per month or $3,792 per year so Cash on Cash = 17%

I think this looks like it is a deal worth doing and I also believe I can bump the total rent up by $50 each tenant which I think make it even better. But I am very worried that I maybe missing something important.

What is the community thoughts Deal or No Deal?