All Forum Posts by: Lee Cruz

After using the brrrr and rental calculators. Most of the time the asking price and the numbers(coc, roi) doesnt work. Even 10-20 thousand the numbers dont work. Only when i put in 30-40k under the asking price do the numbers start to look good. Ex $150-200 per unit, 12-15% cash on cash.

My question is, how often do you get deals from offering waaay under the asking price? Do they get insulted? Do they say "i dont wanna hear from this person again" etc. Thank you.

Hello everyone. I have a small contracting business. I have 100k to invest each year. 50k i put in the market(index funds) and 50k to put into rental properties under my business corporation. So the rental properties will be funded by my business. Does this strategy look right below

Hypothetical numbers will be for a $100,000 house for easy math

Year 1: 

20% down + rehab costs of  20k. Re fiance in 12 months. 

1 duplex done.

Year 2:

i) Cash back from the re finance to put down on another duplex. Refinance in 12 months.

ii) 50k from business to put down on another duplex. Refinance in 12 months. 

2 duplexes done.

Year 3:

i) Cash back from the 2 re finances to put down on 2 duplexes. Refinance in 12 months.

ii) 50k from business to put down on another duplex. Re finance in 12 months

3 duplexes done. Etc. 

Am i reading this right? Am i making this over simplistic? Is this even possible? All suggestions welcome.

 I apologize, i assumed it would be easier if i showed the end result. I picked 25 years, because that would be the ideal time for me to retire, but i plugged in for 30 years. So the numbers changed a bit. Heres my work.

Purchase price: 173, 500

Down payment: 20% - 34,700

closing costs: 3000

repairs: 3000

30 years at 5%

INCOME

$1957 for two units. Tenants pay for their own water.

1957/month

23484/yearly

EXPENSES

mortgage: 745.11

total operating expenses: 822.22 (includes vacancy, insurance, capex, electricity) 

= 1567.33/month

18807.96/yearly

NOI:
$13,617.40

Income-Expense Ratio (2% Rule):
1.09%

Total Initial Equity:
$41,200.00

Gross Rent Multiplier:
7.39

Debt Coverage Ratio:
1.52

Cash flow is 389.67 and cash on cash roi is 11.49%. I hope i showed my work properly.

shameless bump

Hello everyone. Long time lurker, first post. Ive been analyzing properties first and foremost. I want to make sure im doing the numbers correctly before i even look at the property. I think i might have one, in a d class neighborhood. Heres a screenshot.

Question if there are 2 seperate water lines, and the tenants pay for water. Do i pay for the hydro?