All Forum Posts by: Jordan Thibodeau

Dont know mortgage interest rate and without having a complete breakdown of your monthly:

Property tax

Management fee

Insurance

Water, electricity, and trash ( if you're paying for it)

Maintenance reserve and cap ex

Vacancy

I can't provide you with a complete break down.

As far as cap rate( noi/ full purchase price of property) I'm calculating 6.1% and a cash on cash return of 5.91%. What's the cap rate in your area? And are factoring in a maintenance reserve into your budget? Because if you aren't your returns could be artificially inflated.

Do you know what the cap rate is in your area?

I would the area for comparable rentals to confirm the rent estimate. You can try using rentometer.com.

I concur with dick and jean. I would like to know what type of area the apartments are in.

I have a duplex and the 50% rule is spot on. Going from 2 units to 3,4, and so on I would expect building maintenance expenses to increase so the 50% rule might not accurately capture this. BTW I would use the 50% rule as a quick and dirty estimation tool because each property has difference expense characteristics.

As far as condo, be aware that your investment is only as good as the HOA that maintains the building and your freedom to make decisions about your property can be limited by the HOA.

W/O knowing the area and how the buildings look onm the outside...#1.

Congrats on taking another step towards your first purchase. I would try to tighten up the rent range by trying to determine the rent per square foot for comparable units.

Yeah, based upon what you're saying, I don't see any daylight in this deal.

I agree with looking at the insurance expense. As for maintenance is that your monthly rainy day fund? Have you looked at comps in the area? If do, how does your cap rate of 7.56% compare to the rest? Other than that..it looks good.

My manager knows and my colleagues.

Woah theses are some crazy stories. You guys need to stop using the mafia for tenant screening.