All Forum Posts by: Lenny Almanzar

I'm on the market to buy a duplex as an investment. My concern is not having any reserve for future repairs if needed. The duplex itself has a new heater and is well taken care. I'll be covering DP and closing cost. Which will then leave me without the reserve I'd like to have. I'll be house hacking in one unit for about a year or so. After all said and done I will be cash flowing right away as there is a tent with a 1 year lease well into 2020. After calculating vacancy and repair/capital savings, it will be a 10% cash on cash return. Not a bad investment by any means.

My hold up is deciding wether it is smart of me to purchase not having the cash reserve for future potential repairs.

Lenny, it would certainly be better to have money for repairs. If the property cash flows, then put that money aside every month to build your reserve. The main point of buy/hold/rent isn't as much about cash flow as it is about building wealth while the appreciation and equity grows as the principal is paid down. And let's not forget the value of the monthly rent you don't have to pay while house hacking. Rent saved should be seen as income that can also go towards building your reserve.

There's a great article on BP about why it is so important to put money towards CapEx which is short for Capital Expenditures meaning repairs on appliances and wear and tear of the property: https://www.biggerpockets.com/...

The article shows you how to figure how much you will need to set aside each month.

Building a reserve by setting aside monthly CapEx is important enough that it's a part of most cash flow formulas including the BiggerPockets calculator and the formula I posted in my reply above to Amelia.

Is there any reason you can't put some of your cash flow and money saved on rent towards a monthly reserve?

Thank you Lori,

Putting money aside for reserves such as vacancy/cap ex should not be an issue considering I'd also be saving in what I would be paying rent in my apt. I also plan on paying myself for property management each month to save for reserves as well.

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Originally posted by @Yessenia Bell:

@Lenny Almanzar Hi Lenny. If you’re looking a great brokerage you should consider KW Moorestown. We have investor agents, like myself, builders, and regular residential agents. Have you had an opportunity to come to out office? If not, I’d love to show you around! Let’s schedule this and connect!! Plus we’re the #1 office of Burlington county :)

Yes, I've actually interviewed with Mary Poleto.

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Hey Jessica, I'm located in Cherry Hill. I'm also interested in meeting with folks. Soon to be RE agent and nonie investor. Keeping an eye out for Multi-families and or a Duplex

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My hold up is deciding wether it is smart of me to purchase not having the cash reserve for future potential repairs.

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All Forum Posts by: Lenny Almanzar

Lenny Almanzar has started 3 posts and replied 14 times.

Post: What has kept you from progress? (And did you overcome it?)

Post: Networking in NJ (South)

Post: Networking in NJ (South)

Post: What has kept you from progress? (And did you overcome it?)