All Forum Posts by: Joel Johnson

Hello everybody,

We need to rent out our home in Purcellville, VA and are looking for a property management company to handle this. It is a 4 bd, 2 full bath, 1,444 sq. ft. home. This is the only home we own, and are moving about 15 minutes away. The home is ready to be listed asap.

Any leads for us would be much appreciated!

Thank you,

Joel & Bethany

JT McGraw Welcome from Purcellville, VA!

Thank you Nancy Emineth I'm not sure how the landscaped has changed for the better for 2017, but that sounds great since 2017 is when we plan to buy our first of, God willing, several income properties! Thanks again for your words of wisdom and encouragement.

Forest Selby where is the nearest REIA meetups? I found Traction REIA in Tysons Corner...a bit of a haul for us but it is probably worth it if there's not one closer. LoCo for life! :)

Thank you David C. !

Hello guys and gals, When you borrow money from another person (private money) and use an assigned interest rate, say 10%, how is the interest computed? 10% for the term of the loan? So, let's say you set up $100,000 of financing for 13 months at 10%, but pay it back in 12 months. Would you compute the interest by ($100,000 * .10 = $10,000) / 13 = $769/month. Then $769 * 12 to get your total interest due of $9,228? Or is it all based on an annual percentage rate no matter the term. So, Interest Rate * Loan Amount / 12 * #months the terms defined? Clear as mud? Thanks for your help understanding this. Someone close to us has offered $200,000 of capital, to use short term...trying to figure this out. Thank you! J&B

Thank you for replying Kenneth LaVoie !

Thank you Brie Schmidt & Russell Brazil for the quick responses! This helps our confidence level when analyzing properties and fuels our momentum toward "pulling the trigger". Can't wait to join you in encouraging newbies once we are experienced, J&B

Hello community, We only own one single family home and it's the one we live in. Our goal is to create passive income through buying and holding rental properties. I have heard on the podcasts that to be successful with rentals you need to be getting 2% of the property's market value in rent each month. Well, I have completed a few rental analysis reports using the BP calculator and the last one I did returned a cash flow of $600/month. I thought "this is fantastic!". However, the rental percentage based on market value ends up being .8%. Estimated value after repairs is 185,000 and the rent estimate based on comps is $1,500. Horrible based on the 2% rule! The 2% rule would demand $3,700 in rent a month. Not possible in this area, but $600 cash flow is great! Right? The reason it cash flows so well is the asking price right now is $99,000, it needs about $20,000 in repairs (estimation based on photos haven't walked it yet) What am I missing??? I might completely misunderstand the rule. Thanks for your help, Joel & Bethany Johnson

Welcome @Damon R.

We live in an expensive housing market, but I believe there is plenty of opportunity!  Thank you for your service to our country.