All Forum Posts by: Johnathan Robinson

Hey Gonzo, 

Just my 2 cents.. Is this based on tenant occupancy of 2 or 3 units?

This property doesn't seem like it is viable for buy and hold because of the expenses are 120% of Income, which is why the cash flow is negative $937/mo and cash on cash return s -14%. It'll be impossible to be profitable without raising the rents substantially and cutting your expenses. The P&I expense eats up 75% of your income. Assuming the analysis was based on full occupancy of paying tenants, the numbers don't work out. If you consider living in 1 unit, it'll increase your deficit since you're not really paying yourself rent. Let me know if I didn't consider some things.

Update: I went to see the place on a Friday afternoon and found the place only needed minor cosmetic repairs. I slept on it on Saturday and tried to put in an offer on Sunday, but it had already been snapped up!!! I was crushed, but learned a valuable lesson...don't sleep a property when the numbers work out. On to the next one!

Update: I went to see the place on a Friday afternoon and found the place only needed minor cosmetic repairs. I slept on it on Saturday and tried to put in an offer on Sunday, but it had already been snapped up!!! I was crushed, but learned a valuable lesson...don't sleep a property when the numbers work out. On to the next one!

@Chris Sellers I would love to get that to get deals with your ratio in the future. I worked with a local realtor to pull the rental comps, and pulled the taxes from the local tax assessor's office. I have also considered moving into one side, so I think we're on the same page. I went to look at one of the units yesterday and the place looks to be in good shape and both units are occupied. I'll put in an offer with a inspection contingency and let you all know how the chips fell. Thanks for your help.

Thanks a lot to you all; you've given me some tools to sharpen up and I will be better for it. I'll let you know if I decide to go forward after adjusting my numbers and seeing the place today.

I’ve got a prospective property in my sights with the following data included below. On first glance, it looks like a property I should pursue; however, I’m a newbie and probably should seek the counsel of the more wise BP community. Please let me know if you think I’m underestimating my analysis.

Here are my data points:

Asking Price $175,000

2 br/1 ba duplex in a decent part of town in Houston, TX

Rental comps range $950-$1,095/mo

Current tenants lease runs through December

Purchase Price: $175,000

ARV: Assuming the place is in decent condition, I don't plan to make any substantial improvements. So I assumed the ARV would be $175,000

Estimated Repair Cost: $2,500

Downpayment: 10%

Loan Interest Rate: 4.5%; pulled it out of the air. My credit is 750+

Loan Amortization: 30 years

Gross Rent: $2,190 ($1095 *2)

PMI: $65 estimated

Monthly Insurance: $65/mo estimated

Property Tax: $229/mo

No other fixed landlord-paid expenses (e.g., elec, water/sewer). Should I include something for garbage? I have no knowledge of how that works.

Vacancy (10%)

Repairs & Maintenance (5%)

CapEx (6%)

Management Fees (0%)- I’ll be learning from this property, but hope to handle management alone.

Future Assumptions: Ultra Conservative

Annual Income Growth: 1%

Annual PV Growth: 1%

Annual Expense Growth: 1%

This results in $573 in net cash flow per month, which sounds good. Let me know what you think.

I’ve got a prospective property in my sights with the following data included below. On first glance, it looks like a property I should pursue; however, I’m a newbie and probably should seek the counsel of the more wise BP community. Please let me know if you think I’m underestimating my analysis.

Here are my data points:

Asking Price $175,000

2 br/1 ba duplex in a decent part of town in Houston, TX

Rental comps range $950-$1,095/mo

Current tenants lease runs through December

Purchase Price: $175,000

ARV: Assuming the place is in decent condition, I don't plan to make any substantial improvements. So I assumed the ARV would be $175,000

Estimated Repair Cost: $2,500

Downpayment: 10%

Loan Interest Rate: 4.5%; pulled it out of the air. My credit is 750+

Loan Amortization: 30 years

Gross Rent: $2,190 ($1095 *2)

PMI: $65 estimated

Monthly Insurance: $65/mo estimated

Property Tax: $229/mo

No other fixed landlord-paid expenses (e.g., elec, water/sewer). Should I include something for garbage? I have no knowledge of how that works.

Vacancy (10%)

Repairs & Maintenance (5%)

CapEx (6%)

Management Fees (0%)- I’ll be learning from this property, but hope to handle management alone.

Future Assumptions: Ultra Conservative

Annual Income Growth: 1%

Annual PV Growth: 1%

Annual Expense Growth: 1%

This results in $573 in net cash flow per month, which sounds good. Let me know what you think.

 Thanks Adam. I'll be in touch soon. 

Thanks to you both for your insight. @Mylan J, if you could, please shoot me  over anything you think would be helpful. I hope I can repay the favor in the future. 

Hey Y'all,

My girlfriend and I moved to Dallas 4 months ago for some great career moves; she now owns a 7-Eleven franchise and I took a new job as a Financial Reporting Mgr at a public company. Now that I've learned a little about Dallas, I want to begin investing in real estate. I passively hold an investment property in Georgia, but want my investment activity in Dallas to be much more hands-on. 

I've spoken with a lender and have been pre-approved for up to $340K, with a stipulation that I put down 10% and get rid of property in Georgia. I assume they want me to get rid of the house to make the debt to income ratio work; I'm likely going to "sell" it to my dad.

My criteria: 

I want to buy and hold and I prefer a multi-family property (up to 4-plex) that we can occupy and rent; however, I know the DFW market it pretty tough at my price range. My desired area is North Oakcliff, which I also know is pretty tough at my price range. I am flexible to looking at SF that can cashflow.

What have been y'all's experience in the DFW market? Any tips you can give me on making my strategy work or modify it in a way that will work?