All Forum Posts by: Kevin Chan

Holding cost could be utilities and other expenses. I read somewhere that an estimate would be 0.5% per month.

Thanks Daren. Btw I'm entirely new to the landording and RE investing business so it's all based on assumptions I've made from other analysis I've seen on other spreadsheets or read somewhere.

The reason i'm excluding Tenant Acquisition is i'm assuming that just comes outs of the 1st month's rent when using a Property Mgr to find a tenant, not a separate payment - I guess I should probably include a field for general marketing expense.

Thanks for the feedback

Hi, I adapted Brandon's spreadsheet into a different format. Please check it out and let me know if there are any mistakes in the calculations or modeling.

My goal is to use it to evaluate foreclosure deals and to determine max bid.

Two different versions - one to evaluate Max Bid for foreclosure auction (tweak target discount rate) and another where the price is known.

[url]http://www.biggerpockets.com/files/user/Kevinhpchan/file/rental-vs-flip-analysis

Thanks

Hi there,

I've been actively searching for rental properties for the past month and i'm afraid I've gotten a serious case of analysis paralysis! - I'm hoping you experienced investors out there can help me narrow down the criteria for identifying the right properties/deals for long term rentals and actually get started.

Here's my background:
- I make a very good income, have an excellent credit score and do have cash reserves set aside. I work full time and intend to stay in my well job.
- I currently own my primary residence with a mortgage.

Here's my objectives:
-My long term goal is to own up to 10 rental properties (emphasis on SFR or duplexes/triplexes or quads if I can find them) in the Greater Seattle Area or King County that cash flow and use the remaining cash to pay down the mortgage with some reserves for maintenance.
- Greater Seattle area is expensive so i'm willing to go further if it makes sense
- I intend to use a property manager and will structure the model accordingly.

What have I done do far?
- I've joined a Foreclosure Group (www.vestus.com) and have gotten pre-approval from a couple mortgage brokers - they anticipate I will haven no issue borrowing up to 10, beyond 4 they said the rates go up.
- I'm also going to reach out to other similar groups and brokers. I'm new to this so I don't know of other sources.

Help that I need:
- How do I narrow down the criteria for identifying and selecting rental properties? What sources should I leverage?
- I've built a spreadsheet to model cash flow, expenses etc, but I'm wondering if anyone has a core checklist for ideal criteria for rental SFR/MFR?

Appreciate any assistance. Thanks

Kevin

Bill Bob, I'm new at this and have been attending several Vestus meetings. Vestus charges 3% for the service, they're not a lender themselves but partner with another hard money lender that charges 2 pts and 12%.

You mentioned that you can get 20-30% below comps thru the MLS. I didn't realize that was possible given how heated the market is.

At this point, the only exposure to getting properties below market is thru auction sources. Appreciate recommendations for other avenues. I would be happy to pay a service if they can accurately provide the research and due diligence (but I would drive them myself if possible)

Welcome Larry Littrell, I live in Issaquah. I'm currently evaluating SFR foreclosures using a group called Vestus (www.vestus.com). Objectives are rentals.

Hi Dee,

Welcome to BP! I'm also new. I live in Issaquah. Still trying to identify my niche in REI but i'm gravitating towards Buy and Hold Multi-Family Residences but would be open to flipping SFH if a worthwhile deal comes along. Have you ever participated in the Vestus foreclosure group? There are some interesting opportunities to be found there.

Kevin

Josh Nabors , Welcome to Seattle. I moved here 12 years ago and work in the software industry. One area to check out would Issaquah Highlands as place to check out, about 30 min from Seattle. It's a great 'urban village' community with a new hospital that just got built 2 years ago - check it out here http://www.swedish.org/Locations/Issaquah-Campus#axzz2WrMMwQiJ

Good question, one that I'm interested in seeing other's responses too. I'm wondering if there's a particular amount that might red flag the IRS when wiring over.

Brandon Turner , my goal is to generate long term income, hence the interest around multi-family residences but would also be open to SFR if it cashflows well.

If i'm not mistaken, at least based on some of your posts, that's the area you focus on too?

I recently got interested in RE investment from attending a foreclosure group (Vestus) event in Kirkland. I haven't seen many MFRs show up in foreclosure though so would be open to ideas on finding deals.