All Forum Posts by: JJ Buckner

Hey Biggerpockets,

So I have been actively looking and analyzing deals for awhile now and think I may have found one worth going for. This will be my first deal and wanted to see what some more experienced investors thought before I pull the trigger. Below are my number's:

Duplex in Lee's Summit, MO (suburb of Kansas City)

Purchase Price: $135,000

Cash Down:       $32,000 (20% down plus est. of $5,000 closing cost)

Est. Rent:           $1400 (2 Units at $700 each)

Mortgage:          $717.54 (Including taxes and insurance)

Vacancy Rate:    5%

Repairs/Main:     5%

CapEx: Already have an emergency fund in place, so didn't include in calc

Cash Flow/month: $472.46

CoC Return: 17.72%

Cap Rate: 8.58%

Again, this is my first deal so if I am doing anything wrong with my calc, would love some advice! I feel the cash flow is to good to be true based on other deals I have been looking at. Let me know what you all think.

Thanks in advanced,

JJ

@Nathan Brooks thanks for the advice man! Much appreciated.

@Dustin Steller I'm looking to purchase buy and holds. Lee's Summit is a great area. As soon as a good deal comes on the market, it is gone within 24 to 48 hours. Craziness! Will definitely keep analyzing more deals. Thanks for the input.

Hello BP!

The time has finally come for my wife and I to purchase our first rental and begin our long sought after journey into real estate. I have been looking at many properties and doing analysis (the best I can) on them to see if the numbers will work out. Most of the time they don't and I wonder if that is from me being to conservative on my numbers or I just can't find a deal in the area I am looking. Is this happening to other investors in my area or am I being to conservative?

p.s. I am looking in the Lee's Summit, Blue Springs, Raymore, Belton, Grain Valley and possibly Raytown area.  Thank you for all the help in advance!

 

Thank you everyone for the advice!

@Gordon Cuffe and @Dan Schwartz thank you both for the advice. Very much appreciated! Love both ideas of a little higher of an interest rate or prepay the PMI. Will discuss all these options with my lender and also do the math to see what best works for myself. Thanks again!

@Chris Mason Thanks for the breakdown! Really do appreciate the advice. 

Hello all,

So I am having trouble deciding on what my wife and I should do once we move back home. As of right now, we are living in Hawaii before we settle down back home in Missouri (Kansas City area). So we have been saving money for when we get back for our first home and to start investing in real estate (buy and holds). Our dilemma is, when we get back to MO should we use our money to put 20% down for our new home and then have enough left over for another down payment on our first investment or not put as much money down on our home and have enough to maybe buy 2 or 3 investments? My problem with not putting 20% down is the PMI we will have to pay which is money being wasted monthly... What is my best option? Thank you all for the help!

Hey @Navya Rajput,

I am actually in your same position right now. I am 24 years old and a recent college graduate, now engineer, wanting to get into real estate. I wouldn't want to call this advice but I can tell you my plans for making my first investment... First, I paid off all of my student loans so I could become debt free and reduce my risk for my financial situation and start saving. Once I have enough capital saved up I will purchase my first buy and hold and go from there. Hoping to have first purchase within the next 6 to 8 months!

Good luck to your future endeavors and new career my friend!

-JJ

@Ryan Dossey I drive a 1997 Cavalier I have had since college. I bought it for 2k with 130,000 miles and it blows cold ac. Best purchase I have ever made. They are reliable cars, very easy and inexpensive to work on yourself. Not having a car payment allows for so much more money to be available at the end of the month. I will never have a car payment again! Good luck on the search my friend.