All Forum Posts by: Kyle D.

Brian, I am in a similar situation (Live in FL buying in MS) on a 16 unit for $450K. I am going for an LLC to separate liability as best I can. I will be interested in what others say as I am a newbie as well!

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OK, one more, an apartment in Gainesville (1985). This one seems really good for the level of cash I need to put up. Am I missing anything?

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Hi Doug! Glad to see a fellow Tampa member.

I am trying to be very conservative on my estimates. What I was really after is am I missing any line item that could swing the cashflow the other way (aside from a sinkhole or something crazy unplanned).

Can you message me? I am actively looking for properties to start a SFR real estate empire and perhaps you could keep me in mind if you had some cashflow property opportunities in the area. Specifically where you serve! I would love to talk to you more.

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#2:

#3:

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I have 3 scenarios here. I know none are -exceptional- but in my area in Tampa, so much hedge fund big $$ has been spent on 3/2s that the prices have made it tough to get the deals. But when I run numbers on some of these, they still look appealing. UNless I am missing something.

These are class B properties (from my weak understanding).

#1: 3/2ba in need of some paint, flooring, aesthetics.

[quote]

CASHFLOW ANALYZER
Rent per unit	$ 950.00		Sales price	$ 95,000.00
# of units	1		less
Annualized rental income	$ 11,400.00		Down	$ 19,000.00	20%
less	percentage		Repairs	$ 5,000.00
Vacancy	$ 570.00	5%		Total Investment	$ 24,000.00
RE Taxes	$ 1,200.00		Loan	$ 76,000.00
Insurance	$ 720.00	$ 60.00		Terms
Management	$ 1,140.00	10%		4.00%	Interest
Maintenance	$ 570.00	5%		30	Amortization
Utilities/HOA	$ -		DEBT SERVICE
Reserves	$ 570.00	5%		Payment	$362.84	per month
Operating Expenses	$ 4,770.00	44%			$4,354.03	per year
Net Operating Income	$ 6,630.00
less Annual Debt Service	$4,354.03	DSCR	1.523
Cashflow	$ 2,275.97	Cap rate	6.6%	Monthly cashflow	$ 189.66
CCR (%)	9.48%

[/quote]

Scenario #2: New roof, decent zestimate<-> purchase price (I know I don't hold much faith in Zestimates)

[quote]

CASHFLOW ANALYZER	Zillow's Estimate	$ 152,000.00
Rent per unit	$ 1,200.00		Sales price	$ 125,000.00
# of units	1		less
Annualized rental income	$ 14,400.00		Down	$ 25,000.00	20%
less	percentage		Repairs	$ 5,000.00
Vacancy	$ 720.00	5%		Total Investment	$ 30,000.00
RE Taxes	$ 1,600.00		Loan	$ 100,000.00
Insurance	$ 720.00	$ 60.00		Terms
Management	$ 1,440.00	10%		4.00%	Interest
Maintenance	$ 720.00	5%		30	Amortization
Utilities/HOA	$ -		DEBT SERVICE
Reserves	$ 720.00	5%		Payment	$477.42	per month
Operating Expenses	$ 5,920.00	43%			$5,728.98	per year
Net Operating Income	$ 8,480.00
less Annual Debt Service	$5,728.98	DSCR	1.48
Cashflow	$ 2,751.02	Cap rate	6.5%	Monthly cashflow	$ 229.25
CCR (%)	9.17%

[/quote]

Scenario #3: Lower purchase price for a 3/2. 2story ugly green house.

[quote]

CASHFLOW ANALYZER	Zillow's Estimate	$ 120,822.00
Rent per unit	$ 1,100.00		Sales price	$ 96,000.00
# of units	1		less
Annualized rental income	$ 13,200.00		Down	$ 19,200.00	20%
less	percentage		Repairs	$ 2,500.00
Vacancy	$ 660.00	5%		Total Investment	$ 21,700.00
RE Taxes	$ 1,576.00		Loan	$ 76,800.00
Insurance	$ 720.00	$ 60.00		Terms
Management	$ 1,320.00	10%		4.00%	Interest
Maintenance	$ 660.00	5%		30	Amortization
Utilities/HOA	$ -		DEBT SERVICE
Reserves	$ 660.00	5%		Payment	$366.65	per month
Operating Expenses	$ 5,596.00	45%			$4,399.86	per year
Net Operating Income	$ 7,604.00
less Annual Debt Service	$4,399.86	DSCR	1.728
Cashflow	$ 3,204.14	Cap rate	7.7%	Monthly cashflow	$ 267.01
CCR (%)	14.77%

[/quote]

Hopefully the formatting comes out correctly! If not I will reply and try and post images.

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out of curiosity, if I did not want owner-operated, what would a qualified operator cost per year to run the facility? and how many beds could one operator manage? 12? 20?

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$550/mo

6-12 mo leases. avg. 1 turnover a month (averaging over past 24 months).

$91K gross (~90% occupancy)

$22k expenses (taxes, insurance, water, sewer, trash, electric)

$5k in repairs (~5% of gross)

$9k mgmt expenses (10%)

$54k net before note

($95k down) 380k loan @ 4.75 for 20yr is 29k/yr.

$25k noi ?

i have talked them down to $475k. i am hopeful to try and end up at $460k.

new roof last year. option to buy 2 acres adjoining for possible additional building ($50k) - thoughts on that? zoning is lax in this county - i'm sure they would approve another 16 unit.

any insight would be great. this is my FIRST attempt to go all the way down the number path before I pull the trigger on my first rental property.

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hey guys.

I've seen a lot of posts about how RE is soooo much better in the long haul than just putting pretax $$in a 401k and assuming about an 7% return.

But what are some scenarios that the 401k is the better option? (Putting aside ludicrous scenarios). I have scoured the web and cannot find any articles to this point (401k slanted) - can anyone point me to some?

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All Forum Posts by: Kyle D.

Kyle D. has started 10 posts and replied 49 times.

Post: Deal in SC

Post: LLC or Sole Proprietor for Rookie

Post: Help me learn the Cashflow Analyzer (Tampa/Pinellas County)

Post: Help me learn the Cashflow Analyzer (Tampa/Pinellas County)

Post: Help me learn the Cashflow Analyzer (Tampa/Pinellas County)

Post: Help me learn the Cashflow Analyzer (Tampa/Pinellas County)

Post: Senior Housing

Post: Thoughts on this 16 unit apt in Mississippi

Post: Play Devils advocate: would a 401k ever be worth more in 30yrs?