All Forum Posts by: Kevin Nguyen

I am trying to start the process of deal analysis and have come up with estimates for CapEx in my area. I broke it down to the individual components to understand how people usually estimate it. This assumes that everything is new and thus the items will be utilized to it's max life. I will be looking to buy homes from 1200-sqft.-2000 sqft. Please pick my estimates apart. Items that have a long lifespan like a driveway, I can always save for later when I have more homes to subsidize the cost.

http://www.nachi.org/life-expectancy.htm

I used this site to estimate most of the lifespans. 

Water Heater: $900 x 10 years

Roof: $6,000 x 20 years

AC: $6,000 x 15 years 

Furnace/heater: $3,000 x 10 years

Paint: $2,000 x 5 years

Flooring: $2,000 x 10 years (Laminate) 

Washer/Dryer: $900 x 10 years

Refrigerators: $500 x 10 years 

Dish Washer : $350 x 9 years 

Am I underestimating the cost and life span of these items? 

How often do you repaint your rentals and how much does it cost?

Anything that I forgot?

Mark, thank you blogging your journey.  I am trying to immerse myself and these diaries are very helpful. 

Looks like you have a great numbers on that house. The cost of reno and purchase price is right at 70% of the conservative ARV of 110k. Are you going solo on this one? How are you planning the details of this reno? Like where the AC units and supply vents will be located or where outlets we be placed etc.

Will be following. 

 Hey Thu

I'm new too and what you did in 4 months is great, really. I don't have enough cash to buy like that so I'll have to find cash.   Good to know a newbie can do so well. Gives me inspiration.  Congrats

Wow congrats!  I hope to be able to think and act that quickly on deals.  

I am trying to understand the math here and need confirmation. I am a newbiee so this is not definitely not downplaying your achievement. With the firsthouse the appraisal came in at 135k so an ideal BRRR based off 75% LTV would have a purchase price of $101k MINUS 10k in repairs. So ideal purchase price would have been 91k. Since it was bought at 113k and rehabbed for 10k then there is about 32k that is tied up in the house. Correct? For a person strapped for cash they might not have enough for the next deal.

However the house meets the 1% rule which makes a good rental.  I need a mentor..and cash lol.

@Nikolas Ferreira

Funny how much influence our wives have on our decisions.  Gotta keep her happy if she takes care of the kids.  

Well good thing I didn't buy a house because my company asked me to travel out of state for awhile. Phew.  

@Shawn Ackerman and @Justin Fox

MF is really the ideal way to go huh? Most of the MF properties in the desirable areas of Houston are pre-1950s and 500k plus. I think I'll take a step back and rent for awhile longer so I can study and analyze the MF properties (SFR too) further before I take the plunge on a house.

I wish I could house hack! I would have gotten away with it in my twenties but now that she wants to start a family, my wife would be very angry at me in a multifamily lol. If only I got into REI sooner... It's a small obstacle but I'll survive. Thanks for advice.

 You give me too much credit.  The newer house needs a down-payment, just no closing costs and literally comes with everything we need in a house.  I would have less cash to invest because the monthly payment is more expensive.  

The cheaper house needs appliances, some repairs and renovation but over 8 years I could have about 50k more in my pockets for REI. Only thing is, we would probably move at the 8 year mark. In either house, I would probably have to borrow cash at some point.

The name of your website is golden!

For the past couple of weeks I have been browsing this site and I decided I want to pursue REI. My first decision I need to make is that I need to buy a home for my wife and I. We would like to find a house to settle into and start a family soon; hopefully by the end of the year.

I thought about house hacking but my wife doesn't want to start a family in a duplex/triplex. We have 2 options that we are deciding on. Wife wants a new house that's about 2300 per month PITI however the initial cost is down-payment only. Closing costs and all appliances and shades are already in the house. I would live here for 10+ years.

I am leaning towards buying a cheaper and smaller house though, that'll cost me about 1700 per month in PITI. It requires a bit more money up front however I'd save more in the long-run due to the lower payment. It is small but tolerable for 5-8 years with a young family.

Thoughts? What route would you take? I want to make sure I set myself up good so I can start REI.

What do you mean by this is unnecessary?

I'll give the multi-unit properties a second thought with my wife.  A lot of the multi-units in the good neighborhoods are 450k plus and I am afraid that I'd be getting myself into a lot in the beginning.   Nevertheless I'll keep my eyes open.