All Forum Posts by: Alison Koenig

@Brandon Battle...get your mind out of the gutter lol. A woman's 2 cents...a bench is awesome for shaving legs fyi. I would be very excited to see a bench in the shower and we all know who really makes the purchasing decisions in the family ;)

Keep in mind too I'm rehabbing the property, $50k in this example, so hopefully that will cut down on my month repair costs. But as you guys said, I would rather be ultra conservative and be surprised at my cash flow.

@Tamara Elliott-Deering, can you explain what you are saying a little more? My husband has reservations about the amount invested and how long it will take to recoup that money. According to the numbers that I thought came up with, after mortgage and expenses, my cash flow would be about $600/month. Where is the $55/month number coming from? I plan on this being a long term investment, 10+ years on my rentals. We are looking at SFR for flips. Thanks for your response. I definitely want to look at it from all angles for my own education

@Lesley Govan and @Michael Campbell Those were great bits of advice, I re-ran the numbers as you suggested, but this time just as a rental not a BRRRR and I adjusted the ARV to be more conservative. There are no other expenses besides garbage, but I added the property insurance, not sure how I missed that. I just estimated, I would require them to carry renters insurance as well. I will definitely check out SpotCrime, I haven't heard of that yet. I was also conservative on how much value of the property would rise, I only did 2% not the average of 3%. Thank you guys! Here are the new numbers:

https://www.biggerpockets.com/calculators/shared/538964/fe38aa42-2074-4c94-aeab-8248b67021c2

@Tamara Elliott-DeeringThank you everyone for the advice so far!

I don't plan on buying this property, I'm working on my analysis skills, so if anyone in Norwalk, CT likes it, go for it! That being said, IF I was ready I'd be jumping on this and I want some feedback on it, especially if I'm an idiot for even thinking it's a great deal. I want to learn as much as I can right now. TIA!

Realtor.com listing: 

http://www.realtor.com/realestateandhomes-detail/19-Harriet-St_Norwalk_CT_06851_M30754-01878

BP BRRRR analysis:

https://www.biggerpockets.com/calculators/shared/538964/d388c5c2-d964-4154-bf7a-375858f859c8

Test out the BP calculators. I'm in the exact same stage and plan on making our first purchase next March. A lot of people shy away from Zillow (and Realtor.com), but I use it a lot. Mind you I'm not actually investing yet, so when I do, I'll triple and double check Zillow. But they have sold properties in the area, they have the tax info (I cross reference with my city website too). And I just became a pro member here on BP and soooo glad I did. I get to watch all the archived webinars, I just watched 10 years to 10 million and it was really good step by step walk through the calculators. There is a webinar next Wednesday on BRRRR, it's free and you don't have to be a pro member, and usually they give you a discount after the webinar to join pro :) (I learned that through my first one, didn't purchase so waited for the second one to join and get my discount code). Also you don't have to watch it live, the link is good for 2 or 3 days.

Good luck!!!

I thought I would share my deal I just analyzed. It looks great to me, but I still not confident, maybe someone will chime in on mine and also you can have a comparison.

https://www.biggerpockets.com/calculators/shared/5...

Good luck Darren!

I'm a total rookie too and love that you posted this because I'm trying to analyze as many deals as possible right now, so it was fun to look at someone else's deal. First of all, since you are a pro member you can go and look at archived webinars, I have found some great stuff in them. Most of them are pretty much the same thing, but I just watched I think it's how to make a million in 10 years, it goes step by step through the calculators to explain the numbers. 

So my newbie advice, and I hope someone chimes in and gives more feedback so I can learn too, You actually do have good cash flow, but what Brandon recommends in that webinar is a 12% Cash on Cash ROI. Your Cap rate is good. And I disagree with Josh, but I could be wrong, your cash flow would be less after refi because your mortgage would be higher and therefore eat into your cash flow. It looks to me the rehab is what is killing you, you are putting more into it than it will be worth at the end of it all (Total project cost 473 k, ARV 455). The point of refinancing is to have instant equity to use as leverage on another project. And one other quick point, you must not have put that the property would go up in value because it stays at 455k through the life of the loan. Brandon suggests 3% is the average, the average for my area is 2% so that is number I use to be conservative.

I hope this helps! Other people please chime in because I'm a sponge right now!

I currently live in a house we rent that has a walk through bedroom. It is 3 bed/2 bath, you walk through the 1 bedroom to get to the master with its own bath. We use the walk through room as an office/dressing room and closet for my husband. We have 2 small kids that share the 3rd bedroom. I love our little rental. BUT I would never buy it as a "3" bedroom. The property was for sale as well as rent when we got it and they had it priced as a true 3 bedroom and it wasn't selling. It works very well as a rental, but I think it should comp out as a 2 bedroom for resale, or at least in between a 2 and a 3 because that is what it is. I think it would easily rent, but you would have to sell as a 2+ office/den