All Forum Posts by: Joseph Weisenbloom

Here are my quick at a glance numbers let me know if anything looks out of whack.

Gross Rent 2700

Vacancy (6%) -162

GOI 2538

Insurance -100

Gas -80

Gardener -100

Water/Sewer -100

Taxes + Sewer Bond - 281

Missing Expenses

Maintenance and repairs (15%) -405

Electric -100 (estimate)

PM (10%) -270

1102 NOI

150k @ 4.1% for 15 years $1117/mo

Cashflow -$15/mo

Any reason you are using a 15 year loan?

30 year loan @ 6% $899/mo

Potential Cashflow $203/mo

If you get a 30 year loan and you do your own PM it could have legs. Thoughts?

I will contribute a post look forward to doing this again.

Dont trust the selling agents numbers they are in it to sell the house as quick as possible to the highest payer. Expenses are going to be higher in an area like you are describing with that being said it appears you can make it work. The question is are you ready to deal with the caliber of tenant that this property will attract?

Looks like a pretty good deal to me. Current cashflow numbers are a bit scary but the upside potential is there. Expense numbers look accurate from a quick glance. How sure are you that you can get those extra units rented? Can you get the verbal tenant on a written lease? If you can take care of those issues it looks like you can take advantage of this guys mismanagement. How do the non-numbers based qualities look? Safe neighborhood? Not too far of a drive to manage?

Colin,

Welcome to BP and Dallas. I moved here from Ohio not to long ago and am loving it so far. I'm a 23 and its great to see like minded young people trying to get into the real estate game.

I'm in and whoops already messaged you. Look forward to meeting you all.

Count me in for a meet up I'm open for anywhere in the metroplex :)

I have also been using the crime mapper. I was curious as to the accuracy of this tool. Trulia has some sketchy and inaccurate home prices on their site so I wouldn't doubt that their crime statistics are off as well. Anyone have any positive/negative experiences with this tool? Should we ultimately rely on police statistics if we want a true idea of the crime in the neighborhood? Maybe use the Trulia tracker as a sort of pre-screen before we get police statistics?

Looks good to me. Cant believe you snagged a commercial property for your first one and on craigslist as well! Like everyone already said just find a way to refinance this you will be good to go.

Ah looks like I made a few mistakes with my calculations I still got a lot to learn. So a property of this caliber would net 65% of rent not 50% so $942/mo NOI.

Based on your proposed max purchase price + rehab of $116 that would mean that highest you wanna pay is 116k - 7k = 109k. With 25% down ($27,250) your debt service per month would be $438 leaving a ($942 NOI - $438 P+I) $504/mo cash flow. So $27,250 + $7000 repairs = $34,250 invested. So if you have cashflow of $6048/yr ($504 * 12) and divide that by the invested $34,250 than you have a 17.6% ROI.

So I guess I was too aggressive with expenses in this scenario and I think I'm calculating cash on cash return instead of ROI. What else is included in a ROI other than CoC return? I understand tax reduction and appreciation but how do you factor in principal reduction?

Anyways sorry Mark for butchering your thread I'm just trying to learn like everyone else :)