All Forum Posts by: Kelli Van Doren

I'm sorry. I tried to fix it and can't.

The summary is SFR rented to families give cash on cash return of 5% or less. Rented to college students could get a cash ROI of 8.2%. An older duplex on the edge of town has a cash on cash ROI of 18% and a 4 plex in a bad neighborhood is 39%.

Thanks,

Kelli

oops, sorry the table didn't work out. The titles should be
purchase price cash outlay cash on cash ROI monthly rent

Thanks,

Kelli

I am pre approved for 250,000 loan with conventional financing.
For the SFR (sp valley in the table below) with the carport and small kitchen. Asking 109,900. Rent to college students for 1100. Neighborhood mostly owner occupied. Taxes about 1200, insurance about 800. I used J Scott's form from 123flip. With a 99,900 offer and 3000 improvements got a cash ROI of 8.2% which includes paying 12% for property management and 1200 per year for repairs. Published vacancy rates are 10%. I am hoping to do the property management myself but put it in the numbers in case it is more than I can handle.

Some other ones we have looked at:

Address purchase Cash Cash on Rent
offer outlay cash (%)
spencer 55000 12500 1.87 520
Sanders 81000 17700 39.9 1540
sp valley 99900 24480 8.2 1100
omaha 80000 17500 4.9 850
poplar 55000 12000 18.07 800
leslie 102000 21900 -3.6 800

The best numbers are from an older duplex (poplar) that is on the edge of town and a 4 plex (sanders) that is two blocks from the worst street in our city.

Thanks for looking at these.

Kelli

Hi,

I am getting started in real estate. I plan to buy rental property. Have been learning lots these last 2 months. I became interested in Real Estate investing after reading Rich Dad Poor Dad several years ago. I have some money now from my mom's estate. I enjoy giving money to missionaries and others in need and thought that if I invested it, there were be more to give over the years.

I am a stay at home mom of 4 children. I have been homeschooling and my youngest is now 9. I don't have any background in business or real estate but I am enjoying learning lots at these forums.

Thanks,

Kelli Van Doren

Thanks for all the advice and suggestions. I think the 2 properties below could make good rentals but I'm not sure about resale. Should I pass?

A SFR in a fairly good area. It needs all new flooring, paint, many interior doors and other work so I think I could get it for a good price. But it has a shared driveway and behind it is an open field that is zoned light commercial. It seems like it would be ok for a rental but not very attractive for the next buyer.

A SFR in a great location. It is a foreclosure needing a little work buy not much. It has a carport and the kitchen is small. It would be fine as a rental and is in a location that it could be a college rental but the resale with no garage and small kitchen doesn't seem as good.

Thanks,

Kelli

I have looked at some of those houses that you found. Another one in the same neighborhood had an asking price of 64,900 that the owner was willing to negotiate on. But the rent was only $520 a month. It may be able to go up some but not anywhere near $1000. He has another one for sale. I'm going to look at it and make an offer on both. But don't know if he will take it as it will have to be low just to get the numbers to work.

Thanks for the suggestions and questions. I am looking to invest for cash flow. So far, the best cash flow I've found is a 4 plex that is 2 blocks from the worst reputation street in town. It's hard to find a house that even is 1% rent to purchase price, let alone 2% as I've seen recommended on this forum.

Thanks,

Kelli

Hi,

I am a new investor looking to buy a property to rent out. I am trying to figure out my niche. I have looked at duplexes, single family, college rentals, condos, 4 and 8 plex and a small office building.
My questions:
1. Do you think it's better to have 2 or 3 single family houses or one larger unit like an 8 plex or office building?
2. When I am running numbers, do you recommend using 20 or 30 year loan for the mortgage?
3. Should I try for newer properties with lower cash flow or start with whatever has best cash flow numbers?

Thanks,

Kelli