All Forum Posts by: Jeremy Pearson

I would consider is that vacancy rates for that area are ~10% and to get a high quality tenant, you would need to be on the lower end for rent for that area. Even some houses are listed for rent at $1000 and have been up for a week or so. Also, with everything going on right now, vacancy rates might even be a little higher.

Running the numbers with 10% vacancy and using $950/mo to break that 1k barrier on filters when people are searching, that puts your cashflow closer to $130. Even though that's still a decent cashflow, it's definitely something to be considered for that area. Good luck.

That's good information to know so I am not getting excited over something that isn't possible. Thank you, Jaime, for the information! General question though since I am not ready to commit to anything and still just analyzing deals, should I only look at homes for sale by agent/owner then to get a more realistic perspective? Thanks again for your input!

I am doing an analysis for a pre-forclosure in Renton, WA. I am looking for a little more than just a calculation review though. I would appreciate if someone with a little experience in this area could let me know if there is something I am missing about the property because it seems like a really good deal, but has been listed on Zillow for almost a year.

I guess I am just a little skeptical and curious if anyone else sees flaws with this property by just looking at the Zillow link.

It also seems like a 70% house flip rule would be more than the asking price as shown in my analysis. This would give an instant equity of around 2x the property value, so why is this property so cheap?

Property link - Screenshot in case of removal

Spreadsheet analysis screenshot

Assumptions in my calculation:

1.) I would be house hacking, staying in the Master Bedroom.

2.) Rent could be anywhere from $500-600 for a room in the area, so to keep stay within certain filters and still be the cheapest on the market, I put $590.

3.) Room renters would have Water/Sewer/Garbage and electricity included

4.) Although I haven't seen the property, it looks like it could do with quite a bit of lipstick. Assuming the foundation, electrical and plumbing systems are good, I estimated around $20k for rehab.

5.) Comps for a 5 bedroom 2+ bath in the same area estimate the final value above 500k, but I put it there to be safe.

6.) Using an FHA loan while house hacking, I estimated a down payment at 3.5%.

Any input would be much appreciated. Thank you!

Great! Even Zillow says the taxes are about double like you were saying, so I am not really sure what happened there, but knowing I can pull the exact tax amount off the county website is also helpful. As for the rent, you are right that it is an estimate (although it's pretty easy to get a good estimate) and I could lowball that a little more in my opinion to be safe. Thank you for you input! Much appreciated and stay safe during this hard time.

Thanks for your input, Jason! I did know about that low listing price/bid war tactic when selling around here, but I guess I glanced over that with the purchase history. Unfortunately it kind of seems like I am in the wrong area for house hacking to cashflow or even break even. Mostly I was just looking to analyze a few properties though and see what investors in my area thought about the analysis and if it was pretty accurate. Did my analysis look ok to you or were there some things you would revise?

In the Everett area market, this is one of the cheapest deals to get into a home, however when I ran the numbers for a house hack, they look awful. My goal would be to house hack and live in the property master bedroom. Can someone explain if my calculations look wrong or another type of property I should be focusing on if I wanted to get into a house hack that would be a better deal for me?

Property link

Screenshot link (in case the property is removed)

Analysis screenshot

Let me know if you need any other information. Thanks.

Any investors around the Seattle area who might be able to give some input, even if it is just input on what I could do better to give more needed information?

Also, a note on the house hacking portion. I didn't include for a maintenance company because I would be living there, house hacking. After I moved out and rented the master bedroom, I would use that money to over a rental company's cost (~10%) and still have cash flow.

Hello,

I am new to the BiggerPockets website, so I apologize if I violate any rules on my first try at a deal analysis. Please give me any and all suggestions/criticism you might have to help me learn. Currently I am just analyzing and not looking to buy yet, but I want to see how close you guys think I am in my analysis.

This is the deal I was looking at.

If I were to buy this deal, I would be house hacking it (I would be living in the master bedroom in the top unit.) All other aspects of this house could be potential income.

This is the scenario I came up with:

Renting the 2 other rooms up top at $500 at a room, upping the bottom separate rent to $1500, and renting out both the garage/shed units, I was estimating around $2675 total income.

I would ask the bottom tenants to pay their own Water/sewer/garbage and electric, while offering it included to the tenants renting out the bedrooms up top.

I estimated for a total of $15k in rehab costs since the property looks like it could use some TLC, assuming all the foundation/electric/plumbing are good.

I also planned on keeping the train going and using another loan to secure another property 1 year after an FHA loan on this one, thus opening up the top unit for full rent or another room to be added.

This is a screenshot of the calculation I made in excel.

Let me know what you guys think. I would love to know if you think I have grossly overestimated/underestimated things and any other thoughts you may have.