All Forum Posts by: Kris H.

I have a tenant in a SFH that is responsible for lawn mowing, but there's zero outdoor storage.

I don't want to build an entire shed.

Any advice/links to cost effective products that would shelter a lawn mower?

I'm no expert (only 1 property) but it looks like you'd only cash flow about $675/mo. which seems low to me. 

However, the fact that it doesn't appear to have any upcoming urgent CapEX costs is a positive. Those taxes are a killer tho! If you could get the rents up to $1000 it'd be much more appealing. 

Invaluable advice from both of you! Thank you so much gentlemen. After adjusting the rent down to $750 and stashing 15% for CAPEX it's only yielding about $150/mo, which seems a little light... Especially considering that neighborhood seems unlikely to see much appreciation anytime soon. The search continues! It's very nerve wracking doing you first deal lol

Anyhow, thanks again. 

Hey guys!

New to the game, but have researched for a few months. Decided to get creative and just took out a HELOC (closed yesterday) that I'll be using as a down payment to purchase my first buy & hold with. I was approved for $30k but don't want to use more than about ~$10k of it - especially on my first deal.

That said, I've got my eye on a "deal" but would really appreciate a second opinion before moving forward. 

3bed 1 bath, 915 sq ft. w/ Garage.

City: Inkster, MI (near Redford, Dearborn Heights)

Purchase Price: $33k | Down payment: 25% ($8,250) | Interest Rate: 4.875%

Closing Costs: Approx $2400

Expenses:

Taxes: $1400/yr. | Insurance: $600/yr.

Water: $850/yr. (which I will pay)

Expected rent

$850/mo

Possible Rehab:

In General: Home is in nice condition, appears move in ready. Would of course have an inspection contingency. 

Furnace: Meh - Appears to be from 1998 but apparently works fine. Expect to replace within 3-5 years. 

Roof: Good - approx 8-10 years old

Water Heater: Good - 2006

My thoughts

By my estimate I'll cash flow approx $400/mo with 45% Cash on Cash. My biggest concern is the Inkster area - will it rent? Since it's my first deal I also feel like I may be too "green" and not wanting to make a mistake of jumping on the "first deal that knocks on the door" so to speak. But I also don't want to pass up a genuinely GREAT first deal - ya know? The reason I'm paying the water is due to the fact that I don't want a lazy tenant risking a lien being put on my property from the Detroit water authority. However, my assumption of $850/yr is also just that - an educated guess. If anyone knows any more accurate number for water costs in the Detroit area, I'm all ears. 

Anyone want to chime in? Am I missing anything? I appreciate it!