All Forum Posts by: LaToya McClain

This is a great thread. I am new to investing and his podcast caught my attention. It all sounded too good to be true. I am naturally a skeptic that over analyzes much of the time. The best thing that podcast did was lead me here to BiggerPockets. 

Since joining BP, I have learned so much. Much more than anything provided on Clayton's podcast. He never even mentions analysis, but it is broken down clearly here.  Brandon's rental property book has been so beneficial. The support that I get from this group was worth listening to the earlier podcasts  

Welcome to BP. It has been a great resource for me so far. I Hope it helps you on your journey as well. 

@Austin Youmans thank you for the breakdown. I was making a very silly mistake. This is what I was doing:

121,200 - (121,200 x 10%) - 25,132.5 - 37,685.67 + 2,162.99

Makes a huge difference. I appreciate the help. 

In an effort to get accustomed to the rental property calculator tool, I ran the analysis for 2 different properties.  The math makes sense for all of the calculations but the total profit if sold.  Since I couldn't get the numbers to make sense, I watched Brandon's youtube video (https://www.youtube.com/watch?v=xqVF-_hkhfk) introducing the total return feature and the article here (https://www.biggerpockets.com/renewsblog/2016/05/2...).  The article states the following:  

Total Profit if Sold: This is the profit you would make on the property if you sold it. It is computed by taking the After Repair Value in that given year, subtracting out all the sales expenses (the percentage you entered on the bottom of page 3), subtracting out the mortgage balance, subtracting out any money you put into the deal, and adding in all the combined cash flow since you purchased the property.

Even when I worked the calculations along with Brandon on the youtube video, the Total Profit if Sold value never equals the correct number.  I must be doing something wrong, so if anyone can shed some light on this I would appreciate it.  

I will definitely research my local REIA group. I didn't think about that. Thanks @Paul Timmins

Thanks @Brandon L.  I've downloaded the Ultimate Beginners Guide and have been reading through it.  It has been helpful so far.  Thanks for the welcome.

The insurance on the MS Gulf Coast is outrageous.  I purchased my house in 2007.  When I purchased the house, it was not in a flood zone.  It has since been reclassified into a special flood zone which means I could be affected by a 100-yr storm.  They assign a likelihood of this happening (which is very low), but you must have flood insurance which is only provided by MEMA.  To make a long story short, my yearly insurance is $4500-5000 (includes fire, wind & hail, and flood).

The defining line for insurance are the I-10 and Hwy 90 locations.  If you are north of I-10, you are more than likely out of the flood zone and your insurance will be significantly lower.  If you are south of Hwy 90, your insurance will be extremely high in most cases.

My name is LaToya McClain, and I am new to real estate investing.  I'm an engineer from the Mississippi Gulf Coast.  I hope to learn as much as possible from the members of BiggerPockets and create passive income for the future.  Currently, I am most interested in buy-and-hold investments (single/multi family) but am open to learning about different types of investments.  I was introduced to this site through the podcast.  I don't currently own any real estate, but I hope to start investing in the next few years.

Any insight is appreciated.  Thanks and can't wait to interact with the group.