All Forum Posts by: Jessen Rodney Johnson

Alex Sirakides you are welcome to personal message me or find me on Facebook. Jessen Johnson

Dante Guembes I would be looking at 10% cap rate, with a 23% cash on cash return if I considered grandmas money as my own for down payment.

Dante Guembes the $372 includes taxes-insurance per month, 10% vacancy, 5% repairs, 5% cap ex. Water. Obviously I would like it to be self sufficient, but I do have another property cash flowing $270 month after everything with reserves if need be

Thanks for the reply, like the LLC idea. Wouldn't be buying for the equity or the appreciation. Buying for the cash flow few years down the road. Hard to have down payments while in college ha. What's your opinion on the numbers? At 85k price is 10-15k below market average.

Im 21 years old going to college. I have one property and looking to buy a duplex. Here are the numbers. Keep in mind the sellers are divorcing and forced to sell.

1. Asking $100,000
2. 2,080 Square feet 
3. New roof
4. Tenant occupied

Rent is now $975, will be raised to $1,070 

Now the hard part. I have offered 80k, but it will take 85k to buy it. I dont have the down payment. My grandmother will loan me the down payment. My numbers the first five years while repaying her will look like this. 

1. Mortgage $350
2. Down Payment $330
3. Expenses $372 ( Water, Taxes, Insurance, Vacancy, Repairs, etc...

I will cash flow $20 month (absolutely nothing for 5 years)

But in 5 years I will have $45,000 in equity and be cashflowing $500 month.

So is this deal worth pursuing or should I just leave it alone? 

Thank you for your time and I appreciate your advice!

-Jessen