All Forum Posts by: Joseph Sasotona

Also did not factor in turnover costs. I’m gonna read and learn about it. Thanks for pointing it out

Hey Greg,
I did not include utilities (separate meters for each unit).

Insurance is factored into the calculation.

I forgot to include the garbage/ sewer expense in this calculation 

When you are analyzing a deal, do you always put 3-5% or more on CAPEX, Vacancy, and Repairs and Maintenance? My Current plan is to house hack and self manage this quadruplex. Do a 3.5% FHA loan, live in one unit for 1 year, and rent out the other 3. Currently, this property is fully occupied. 2 units are month to month, and 2 units have expiring leases at the end of Feb 2023.

I ran the numbers through the BP calculator.

Assumptions for first year:

1. I have done my due diligence on the condition of the property, no major repairs needed, every single unit is move in ready. But to be conservative, I am setting repairs and maintenance at 5% of monthly income.

2. CAPEX set at 0% for the first year

3. Vacancy set at 0% for the first year

4. 3 Units rented out, 1 unit occupied by myself (house hack)

At these current parameters for the first year: I am at $30/mo at 1.08% CoC ROI

Assumptions for second year:

1. I leave the property and have the 4th unit rented out

2. CAPEX set at 5% Vacancy at 5% and Repairs and Maintenance at 5%

My new cashflow for the 2nd year: $745/mo at 26.5% CoC ROI

Is this a viable plan / deal ? Would love to know your thoughts.

Thanks for your insight everyone!

Good Day,

I would like to get in touch with contractors to rehab a single family home. I have the inspection report and would like to get a cost estimate.

For those who are experienced in doing rehabs, how do you estimate rehab costs?

Thank you!

Also I just realized I also asked about new construction. What is a realistic offer for a new construction? Should it just entirely be based on comps?

It would need work. Mostly cosmetic and/or new roof and new hvac system needed. But not like the heavy duty ones like structural damage or a total rebuild

Thanks for your feedback Frank! This is helpful

Good Day BP!

I am still in the process of reading more books about real estate and listening to podcasts but I still haven't found the answer to this question in my mind:

I am currently on the hunt for a second property and will make it my new primary residence. The strategy I am thinking of implementing is to turn my current home into an investment/long term rental property, and use the cash flow from renting out this home to put towards my mortgage for the second property. My current home will cashflow around $800-1000 based on how much a neighbor's house is currently renting for, and also based on BP's rent estimator. I plan to do this process every one to two years so I can slowly grow my portfolio.

Currently I have been looking at homes listed in the $200k - $300k range and aiming to acquire it for 80% of comps/recently sold in the same zip code/vicinity. I am mainly looking at ready to move-in houses that will not require any major rehab. If there is any rehab to be done, it would only be cosmetic in nature. Is this offer realistic or is it too low? Also is this possible for new construction being sold by builders? Or should I just focus on privately owned homes?

Thanks for your feedback!

Hello BP Community! I am new here. Real estate investing has always been at the back of my mind but I have been clueless and didn't know how to start until I purchased my first single family home a couple of years ago. The process of looking for a home, and purchasing along with the help of a friend who happens to be a real estate agent has given me ideas.

I went on an e-book shopping spree from the Bigger Pockets store last Black Friday, and started reading "How to Invest in Real Estate". I look forward to embarking on this journey and hope to meet with some of you in the near future and build connections and friendships along the way!

Happy Holidays! :)

Joseph