All Forum Posts by: Jeff Starkey

With those terms, it definitely sounds like its something you will really struggle to do alone, especially with no cash position. Do you have anything with equity in it that you could tap into if necessary? Even with killer cash flow I think you would really struggle to pay that loan off in 5 years. How much equity do you think you would have in the deal after purchase? After repair? I think you will find yourself in a tough spot if you are requiring HML and you are having to fix these things up yourself, as your carrying costs are going to be tremendous. I think you might be better off buying and fixing up a duplex/triplex and getting a better feel for all your numbers. Evansville is a high cash flow low appreciation market. There are plenty of deals to go around, especially if you are willing to put in your own labor.

What is your goal/strategy with these properties?  Long term buy and holds?  Fix and flips?  Possibly a combination of the two?  You could definitely get creative if you do your most of your own rehab (you are/were a contractor if I remember correctly).  You might be able to offer to spread the down payment over 2-3 years if you elect to fix and flip some, rent others.  She might be interested in some sort of a modified down payment strategy if she owns them all free and clear and is using it to fund her travel.  

I should also add that the stairs to the basement are pretty narrow and the delivery crew had a tough time getting them in there.  I think there would have been a liability risk to having tenants move their own washer and dryer down there due to fall and injury risk with an awkward appliance.

It's not necessarily standard.  However, it is near a college campus, so I elected to provide them rather than risk damage to the laminate floors while moving in.  It also increases the pool of people that I can rent it to (I would suspect most college students don't have a washer and dryer sitting around, I know I didn't).  I purchased them at Lowes on sale and the fridge was a scratch and dent special (and they even replaced the missing part for free!).  I'm all in for 1200 bucks for new name brand appliances (washer and dryer separate, not stacked) with a warranty.  I think it increases desirability for the area and if I even get $25 per month extra due to supplying them ($300 a year).  I'll get the money on that investment back fairly quickly and potentially reduce damage to the property.

Definitely depends on the situation.  I wouldn't replace older appliances that were still functioning unless there was a compelling reason to do so. 

Hello all,

I've purchased several properties in the past 18 to 24 months and I'm starting to really work on doing a better job of organization and calculating exact returns. I've been cautious to make sure I'm purchasing pretty well (I was fortunate enough to buy a duplex for 52,500 with gross rents of 1125 per month, and a SFH for 50,500 that rents for 775), but as I look to expand, its certainly going to be more important to get a stronger handle on determination of cash on cash return per property.

With that being said what do you include in your acquisition costs?  What I'm including right now is

-Inspection

-Loan Acquisition costs

-Downpayment

-Initial repairs

-Any other settlement costs or wire transfer fees, etc

For my SFH I purchased a washer, dryer, and refrigerator prior to getting a tenant. Should I include this as an acquisition cost for the purpose of calculating my CoC return, or expense it to something like CapEx? Also, are there other expenses that you would run in to regularly that I'm missing from this list?

Thanks

I have been using a property manager since September  and I have been pretty pleased with their service so far.  Shoot me a message if you want to discuss.

I've recently purchased a property that was under management by Fetter (about 2 months ago).  Previous owner thought they did a decent job.  I haven't had any problems yet.  They have been pretty quick to respond to things so far.