All Forum Posts by: Luke M.

@Alan Russell

Yes that is correct

@Joshua Dorkin

Would you be able to chime in on this conversation? A couple new guys confused!

@David L.

Thanks for the input! I looked up the property tax from last year on the county assessors site so might of went up a few bucks.. The insurance that is a guess, my in laws are insurance agents and not answering the phone right now! ha So on that figure not that confident, we lived in a 3 bed 2 1.5 bath not far from there and it was around 700 a year..

As for all the 10% this is what i have been reading on here? I would really like to hear what some others are doing on here? I talked with my banker yesterday he owns 12 homes. He said he is usually around 8% Just like you said, I am having a terribly hard time finding things that will meet the mark here. I guess when I do and if i can close it, should have some potential..

I am not sure if I am doing that all correct either... Just trying to get this figured out so I can feel comfortable about making an offer..

Are some people using 10% with vacancy and repairs combined?? Anyone care to share?

@Jeff Aponik

Yea, I was just wondering if I was doing something wrong... Thanks!

On to the next

@Dawn Anastasi

Yes that's what I get too.

Question is why does the 50% rule say I will be cash flowing 121 a month?

That's the part that confuses me

Thanks!!

Newbie here.. beware..

Trying to locate a deal for myself and I upgraded to the Pro version to take advantage of the rental calculator.. I am interested in SF properties right now..

My question, I have ran a few today and I get this low cap rate of about 5.2% but click on the 50% and it has $121.00 cash flow on it..

price 50,000

tax 2191

closing 2000

20% down

repairs 1500 (flooring/paint) I will do

4.5

20 yrs

rent 750 = 9,000

vacant 10

repairs 10

pm 10

capex 10

insurance $60 month

The deal analysis tool says..

expenses 795.64

monthly cash flow -45.64

pro forma cap -4.6

NOI 2489.00

cash need 13,500

cash on cash NOI -4.06

purchase cap rate 4.98

50% rule

$121.94

Is this correct how i did this? If so i dont get all the negatives then it cash flows based on the 50% rule?

Thanks again everyone!

@Darren Flater I appreciate that! I will defiantly be messaging you here soon!

I guess I never hit the post reply button!

Again thanks everyone this site and the people are awesome!!

I forgot about adding that egress window, any opinions on how much this would increase the value of the home?

Matt thanks for the response. I like your idea of lowballing. I will take that in to consideration. If I am understanding the ARV, it was assessed for 67,000 so I guess I am not sure if that would be also the ARV or close to it? I am not set on this deal by any means. I enjoy looking and trying to find one that will meet my wants. I have my eye on a couple others that are priced in the 60K and sold few years ago up 80K.. Might still be hope for me

Kenneth- My plans for the house will be to buy and hold. In the neighborhood its in I really don't see the appreciation going up much on the home. I am not sure about the rent. Great points I haven't learned yet

Well went to the house today. Walking in I was getting super excited everything was looking good, too good... New roof, hard wood floors new water heater and 2010 furnace...

Foundation did not look healthy. About every 4 feet there was a beam on the wall that looked like it was a poor attempt at DIY support system. It was anchored in the floor then the top was nailed into the floor joists..(which to me didn't look like it would be to effective) It looked like the entire foundation was had these "Braces" on it..

They are asking 66,000. house sold in 2008 for 108000

Any who would be willing to take this task on if the price of the house was right? Or is there a price for the house that is right?

Just curious...