All Forum Posts by: Kevin V.

Bryan,

Ironically this would be my first deal as well. It may need some minor repairs. Nothing major. The neighborhood is pretty good. Low crime. Good rental market. I do believe the house is undervalued. It is a short sale, originally bought for $98k in 2007. Not banking on appreciation, but I do believe the house is undervalued. 

Hi BP Members,

Any feedback on this potential deal would be a huge help.

Details:

Purchase price: $45,000

Down payment: $11,250 (25%)

Closing costs: $1,800

Rent: $875/mo

Mortgage: 4.5% fixed 30yrs. 

Insurance: $50/mo

Taxes: $150/mo

PITI: $371/mo

Expenses:

Vacancies  (10%): $87.50/mo

Cap X (5%): $43.75/mo

Maintenance  (10%): $87.50/mo

Total expenses: $218.75/mo

Cash flow: $285.25

Capitalization rate: 11.46%

ROI: 24.36%

Any feedback would be greatly appreciated. Thank you. 

@Andrew S.  :

I am interested in SFR buy and hold to begin. The market I am currently looking in has a fair amount of property that is priced in the $30-$45k range with little to no work needed. These same properties are renting between $800-$950, obviously depending on the condition. These properties meet the 2% rule as well as the 50% rule.

My main concern is the interest rate. Right now the down payment is what it is. I am able to cover that. However, the interest rate will take money out of the LLC every payment if it is not the best I can do.

The min loan amount is $10k.

George,

Thanks for the repsonse. Yes its a good loan? Or. Yes keep shopping? A bit confused. Thanks.

BP Members,

Firstly, thank you to all the BP members that contribute to this website. With the wealth of knowledge on this site, it has been much easier to take my ideas and dream to a very close reality in such a short time. I received my pre qualification letter with these conditions below. I would love some input on whether or not this loan is good or I still need to shop. Thanks.

Loan Amount: Up to $38k

Fixed 30-year: 4.65%

Downpayment: 25%