All Forum Posts by: Justin Krautkremer

@Jay Hinrichs

I was wanting to avoid Kokomo as their economy is largely based on Chrysler (Stalantis). If Chrysler leaves, the town doesn't have other industries to keep the city afloat. Am I right in thinking this? I live in Kokomo, so it would definitely be easier to invest here rather than a different city. 

The property is in Muncie. It is just north of Ball State. To me the houses in the neighborhood seemed well taken care of and maintained. If this would be a C, what constitutes a B neighborhood?

Thank you for your time.

I am very new, and I appreciate your responses. Upon looking at the figures again, I forgot to say that I am hoping to get the property for 45k, and will be paying cash for the purchase. The COCR was WAY OFF. Not sure what I was thinking or looking at. It should be 266.9%.

Planning on leaving 20% in the home and taking 80% out. Refinancing $56k before refinance costs added on. I am assuming a 4% interest, but that might be too low. 

Also, putting aside just over 25% of the rent towards future repairs. I guess you can say that the total of CapX, Vacancies, and misc expenses during ownership amounts to just over 25%. I like round numbers, so I rounded it to a full $200 Also planning on using a prop manager 10%.  

rent =750

Management = 75/ month

property tax = 79/month

Insurance = 60/ month

Vacancy/CapX/repair fund = 200/month

Loan = 267/ month

Cashflow = 69

Again, I appreciate your responses. 

Looking at a property in a northern suburb of Indy. Its an off market listing. Purchase price is 48k. From the looks of it, it is in good condition, and can rent without doing too much (B-C neighborhood). Planning a rehab budget of $7500. Looking at other properties in the area, I feel that it can possibly appraise for closer to 70k if not more with some paint and new flooring. It will rent for $750/month.

I put the numbers into DealCheck:

the COCR is 4433.5%,

ROI is 7508.9%.

Total cash that will be left in the house after refinance would be $197.

The only downside I see is that the cashflow is at $71/month.

This would be the first rental property, and I am VERY GUILTY of analysis paralysis. Is this a good deal? Should I be concerned about the lower cashflow? Anything I am missing when looking at properties?

Any help is greatly appreciated!

Looking at a property in a northern suburb of Indy. Its an off market listing. Purchase price is 48k. From the looks of it, it is in good condition, and can rent without doing too much (B-C neighborhood). Planning a rehab budget of $7500. Looking at other properties in the area, I feel that it can possibly appraise for closer to 70k if not more with some paint and new flooring. It will rent for $750/month. 

I put the numbers into DealCheck:

the COCR is 4433.5%,

ROI is 7508.9%.

Total cash that will be left in the house after refinance would be $197. 

The only downside I see is that the cashflow is at $71/month. 

This would be the first rental property, and I am VERY GUILTY of analysis paralysis. Is this a good deal? Should I be concerned about the lower cashflow? Anything I am missing when looking at properties?

Any help is greatly appreciated!