All Forum Posts by: Ken Rudolph

Ann, the numbers only represent one duplex, not both. In other words, those numbers would be the same for the 2nd duplex.

Tom, Each duplex is $190,000 unfortunatley!

Richard - Accessment was done 2 years ago, and will be done in another 3 years unfortunatley. $5,900.00 for ONE duplex is about average I'd say.

I believe I may have been unclear. The numbers are from ONE duplex, but would obviously be doubbled for the other side! SORRY!

Plan is to buy 2 duplexes from the same owner in Southern New Hampshire. Moderate amount of defered maintenance, but nothing I cant personally handle. 3/4 units are rented at $1,100/mo with long term tennants in place. The unit that is not rented will need about $3,000 worth of work to bring its rent to market at about $1,250. Once the other units become available, the plan is to repair those and re-rent for market. Also, I am running these assuming 3.5% financing because my feeling is that if it works with no money down, it may work better with money down.

All my numbers are ran at 1,100 a unit, not what they "will be":
Loan Amount (before downpayment): $190,000.00
Down Payment= $6,650.00
Monthly Loan Payment (P&I)= $984.26
HOA Monthly Fees= $0.00
Monthly Home Owners Ins.= $100.00 (high)
Monthly Taxes= $486.17
Monthly Maintenance estimate= $110.00 (5%)
Monthly Vacancy Cost estimate= $110.00 (5%)
Monthly Capital Expense estimate= $110.00 (5%)
Monthly Property Management Fee $176.00 (8%, although we plan to self manage.)
Total Monthly Costs = $2,076.43
Monthly Profitt = $123.57
Annual Profitt = $1,482.85
Debt Coverage Ratio = 1.06
Annual ROI = 10.48%
Months to break even= 114.51

Elizabeth,

Sounds like we are on similar paths! 

Enjoy the journey!

Ann,

I appreciate your advise. It was kind of cool listening to the podcast's and hearing someone focusing on southern NH/MA being quite successful. It is very encouraging.

I hope to do some business with you soon!

Thanks for the words to all that responded!

Having funds is a great advantage over the don't have a pot to piss in crowd, however don't let it make you lazy as you can start buying lousy deals just because you can!

It is funny you say that! I honestly believe the reason I am not part of that crowd is because I am not lazy and rely on my brain not the emotion of making it big or going broke for that matter! I have listened to all of the podcasts, and unfortunately the REIA's always seem to fall on my work days. I have a great schedule - 2 days on 2 days off - but luck is luck!

The more and more I read on here, the more I want to get going.

I live and intend to invest in Southern New Hampshire. I am looking for a Fix and hold/Buy and hold strategy to develop long term cash flow. Currently I earn about $250,000 from a W-2 job and intend on retiring young (10-15 years puts me at 40-45). I have looked at every investment vehicle that I can think of. Although I will be diversified, I keep coming back to real estate as a great long term investment strategy, and fastest way to "cash flow" what I currently earn now.

Most of what I have read on here (not all) tends to be from the people looking to solve immediate financial shortfall in life, rather than looking to expand on an already prosperous financial future (i.e. I have no money/no way of getting money, how do I become rich fast from Real Estate). Although I am very hopeful for these people, I am coming from a different place. I want to expand my earning potential with passive-ish income. Any advice would be welcome! Here are a few of my questions for all you folks in Southern NH:

Where are you sourcing your properties?

What communities should I be focusing on? I want to start with SFR/Small Multi (open).

Would any of you seasoned pro’s allow me to buy you lunch/dinner and pick your brain?