All Forum Posts by: John Vu

Hello All!

I wanted to take some time to introduce myself on this forum. My name is John and I am a new local wholesaler in Colorado. I am new to this and trying to learn as much as I can. I'm also looking to network with other investors or wholesalers and I'm wondering if there's anyone here who has a Titling Company or Attorney or even the escrow agent that they've used to successfully close a wholesale transaction.

Thank you!

@Bill S. @Timothy M. Well the property just went under contract within the last couple of hours or so LOL. It was only listed 3 days ago. Oh well! onto the next.

@Bill S. Thanks again for the great insight into this property. I will take your words into account when considering this poperty and the area in general. Makes nme think twice about whether or not I want to manage this property myself.

@Matt M. I got the number 5.375 fro man agent saying the rate for condos are a bit more, especially if I won't be living there.

@Timothy M. Thanks for going through this with me! Here are my numbers

Purchase price is $185k and down payment is 41k which includes closing costs, and gross rents are $1775:

$1775 gross rent

- $828.76 mortgage

- $129.83 taxes and insurance

- $299 HOA

- $142 Capex/maintenance (super conservatively low number)

- $0 property management (I would attempt manage myself)

- $177.5 vacancy + repairs

That would mean the best case scenario would be about $197 a month cashflow and 5.79% CoC

HOA definitley does kill the income, but I never thought about it that way. Didn't realize having HOA would depend on the property appreciating.

For all the Denver people here, (and anyone else that might want to participate) can we look at a deal together?

I have been looking at what I think could be an "ok" deal.

The following place seems like a good price for what it is, and the cosmetics look great in the pictures alone:

https://www.zillow.com/homes/18133-E-Kentucky-Ave-...

Again, I am calculating with the typical 20% down payment, but with rates of 5.375. I think it can rent for around $1775 and would hope to negotiate a price of $185k (as suggested by an agent).

After my expenses of mortgage, vacancy, repairs, and CapEx, insurance, taxes, HOA, I am left with $197 cashflow, and 5.79% CCR and almost meeting the 1% rule.

What do you think? this seems to be one of the better ones I have found, and almost meets some criteria mentioned in this thread.  Yet i'm still not even sure how I feel about this deal.

@Niels Bjørn Toppenberg I have actually messed with the numbers, like trying to negotiate prices to try and get the numbers to what will work for me, but a lot of times,  I don't really know how to submitt "right offers". I mean, is everyone just thowing out low ball offers, or 10-15% lower than asking price, or something else?

@Brian Ploszay It is for that same reason it is a bit itimidating haha. I think I just need to take the leap and find a decent deal and not exepect a super good one right off the bat. 

Wow, I wake up to all these responses and it's so awesome. I love the Bigger Pockets community. It's defintely a bit to take in and digest, so thank you for all of the input!

After analyzing so many deals I have noticed, as @Bill S. has pointed out, that some of the less desireable neighborhoods to result in a higher cash flow but can come with the headache with certain types of tenants that you might get. It's helpful to see that you would take 6-8% CCR in your back yard and that it is reasonable given the current state of real estate being so competitive.

Due to some of the other responses here, I will definitley take into consideration secondary markets outside of the big Denver (and big cities). It also sounds like there is a common theme that investors @Dan K. and @Chad Kastel are suggesting to add value or forcing appreciation in one way or another. I haven't really thought about that as I have never done any type of rehab work - So my intentions were to buy something in relatively good condition and rent it out right away. I assume good deals on thsoe type of properties are even harder to find.

Great information!

@Frank Wong @Dennis M.

Yeah I my only game plan at the moment is to continue to analyze deals the way the Bigger Pockets show it in their webinars. I am getting a few different feeds from different agents that I know.

The only game plan I have is $100 (maybe $200 now after this thread) per door cash flow and aiming for 10% CCROI. Sounds like to me you guys on this thread are not as concenred about CCR. In that case I have actually analyzed a few properties where I have gotten $200+ cash flow from them. What next? Do you guys have any other criteria after that that helps you determine it is a good deal?

In theory, I could just go and buy one of th ones I found with $200+ cashflow, but I couldn't be sure if it was really a good deal. 

@Dennis M. What is your guideline/rule of thumb for cash flow? Do you have a minimum CC ROI?

@Ned Carey Great points. And you are right, I have definitely been learning just from analyzing deals alone. Thanks for all of the input here guys.

@Michael Hy Not a problem - To be honest with you, I don't know exactly how they get their numbers, but that is just what I am seeing from various threads on Bigger Pockets. 

My guess is that they are calculating the numbers based on how much total cashflow they are getting for the entire year and diviging that number by the how much money they put down. That would make sense since that calculation doesn't take into account the future property value.