All Forum Posts by: Justin Sandall

Eric, 

Thanks for the thoughtful reply! I'll be sure to include those in the future.

Have a good day.

Hi guys, 

We've found a 3 bed/2 bath, 3 car garage, finished basement, nice yard with sprinkler system and well in a very desirable school district. It has been foreclosed on and just listed for sale at $120,000. I am using this as my purchase price as I don't think there is much room to get more of a discount. Comps in the area run $125,000 -  150,000. 

Revenues Monthly (Year 1)

Rental Income   1,200 (14,400)

Vacancy/Loss Rate  5.0% (5.0%)

Vacancy/Loss Value  (60) (720)

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Gross Income   1,140 (13,680)

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Expenses Monthly (Year 1)

Property Taxes Annual  1,158 (1,158)

Insurance Annual   755 (755)

Maintenance & Repairs Annual   684 (684)

Utilities Annual   0 (0)

Advertising Annual    150 (150)

Administrative Annual   600 (600)

Variable Cost PM (% Income)   0% (0)

Fixed Cost PM Annual    0 (0)

Other 1 Annual      100 (100)

Other 2 Monthly     0 (0)

--------------------------------------------

Total Expenses    3,447

-------------------------------------------

Expenses as % of Gross Income    28.94%

------------------------------------------

Net Operating Income (NOI) 10,233

------------------------------------------

Cash Flow

NOI (Cash Available) 853 (10,233)

Mortgage      479 (5,752)

Total Cash Flow   373 (4,481)

Cash ROI    16.60%

Equity Accrued   1,583

Total Return    6,064

Total ROI   22.46%

Cash Flow / Mortgage Ratio   178%

Loan to Value (LTV) 80%

Rent to Value (RTV) 0.95%

Capitalization Rate 8.5%

I can't for the life of me figure out how to link my spreadsheets I've got on my computer to these posts. 

Thanks for your time.

 Thanks for the reply. I'm sorry about the formatting. I've got another one to post that I'll try to make easier to analyze.

Hey guys,

Was wondering what you think of this analysis:

SFR - 3 bed, 1.5 bath, 1200 sq ft, detached garage & carport, large fenced yard, all hardwood floors. Will need minimal cosmetic touch-ups before listing for rent.

So with a very conservative rent estimate and (what I feel are) reasonable expense estimates, we'd be cash flowing ~$200/month. We'll be able to rent fairly easy. The appreciation stuff is estimated fluff, we aren't banking on any of that at all.

Any thoughts?

Hey guys,

I have been having a philosophical debate with my partner and wanted your opinions. Our first property has worked out really well as we have cash flowed since day one, have a great renter and were able to buy a property at a discount that had pretty much all the major stuff in great condition.

On that property, we did a 15 year term mortgage to minimize the interest costs during the life of the loan recognizing that our cash flow would be less. We made sure to run our analytics to ensure positive cash flow in this scenario prior to buying.

As we prepare to purchase our 2nd property, I have been opining for a 30 year mortgage to generate improved cash flow. My position is that the increased cash flow will create a bigger/better buffer should any major CapEx befall us as well as allow for the ability to pay out income vs. have increased savings to be put to the next property. In addition, if we don't incur significant expenses, we could always pay extra on the mortgage.

In short, I feel like there are more options with the 30 year term, especially since we are buy and hold investors.

Any thoughts or opinions one way or another? 

Thanks for your time.

Shane, 

Thanks for the thoughtful reply.

Did you essentially just label every transaction on Quicken with the property it was associated with? Funds for my properties will be deposited to and debited from the same business checking account. 

Just wondering how you kept track of the 4 different properties in the Quicken register.

Thanks again!

My first rental property is doing great, cash flow positive from day one with a great renter.

It's easy to keep track of income/expenses etc. on Quicken for Mac right now, but soon we will be looking to investing in another rental. I anticipate that keeping track of everything I need to for tax purposes will be more complicated. Do you have any recommendations on how to best do accounting for multiple properties (i.e. a particular program or speadsheet that can be purchased).

Also, do you know of any sources or programs I can use to help keep track of returns and other indices an investor would be interested in? I'm not exactly sure what all those would be or how to calculate them.