All Forum Posts by: Luke M.

@Brant Richardson

Ok good to know I am starting to get on track with my numbers I think. I upgraded to pro. I have ran a few sample deals on there and starting to feel more comfortable.

I am not 100% on the ARV, it sold in 2008 for $108000. I am going in It tomorrow and hope to find a clean, beautiful, turn key property. Haha

This site is a amazing, a lot because of people like you and everyone else who responds to these newbie posts. I greatly appreciate it.

@Brant Richardson Thank you for the help. I dont have any idea of the repairs I just wanted to see if I could analyze it correctly then change the numbers later. So based off of some things i have read on here, $100 a room or better is acceptable?

@Bill Jacobsen I guess I was thinking Cap ex included the repairs.. So Cap ex would just be for the physical assets like roof, siding, furnace, ect? And thank you!

@Kenneth Hynes Thanks for helping out, what are your thoughts as far as purchasing?

@Darren Flater Nice to meet another local guy! I read your portfolio. Very nice, I have the same goals in mind. Thanks for the input, and yes the house is in waterloo. The house needs a egress window put in to make it the 3rd bd. You have any idea when they would be able to dig that with the frost in the ground? I am going to make some calls monday but just thought i would see if you had some experience with that.

Thanks

Would really like to know what your guys/girls thoughts are on this deal. Am I close to getting the numbers right? What are your thoughts on these numbers if I do for some miracle have them right? Thank you

SFH 3bd 2b Foreclosure homepath home

$65,000 asking price

1296 sq ft

big yard fenced in, concrete driveway

vinyl siding with good looking roof.

I havent been in it yet, going to take a look monday. Assuming all is fairly ok for now..

home last sold in Jun 2008 for $105,900

Here we go again......

Cost Assumptions

65,000

13,000 down

3,000 improvements

2,000 closing fees

Financing

52,000

13,000 down

4.5 apr

20 yrs

328.98

Revenues

950 monthly

11,400 annual

Expenses

Property Tax $2,112

Insurance 600? Not sure how to calculate this Purchase price of the home or is it the assessed value of the home?

Property Management 1,140

CAPEX 1,140

vacancy 950

utilities 120 (2 months enough?)

6,062

NOI

11,400-6,06 = $5,338

Cash Flow

$5,338 - $3,947.76

=$1,390.24

Cap Rate

11,400/70,000 = .16

COC

1,390.24/18,000 = .07

Am I even in the ballpark on these figures? I have been really beating my head trying to learn this stuff! If I only knew I wanted to do this in highschool....

ANY advice is soo much appreciated! Thank you for in advance for looking and sharing..

Luke

Ah I get it, thank you for explaining that to me!

Could you explain what 'total expenses (non PI 5278 ) about 50 % is?

Thank you for the reply!

in the expenses i have 10% for pm. As for repairs, it would be the egress window. Everything looked good and ready to rent.

I also had the closing cost in the cost assumptions at the top

With that in your figures would it be good deal ? Or move on?

Single Family would be 3 bedroom 1 bath in basement with the egress window (only 2 bd now)

Clean house, newer vinyl siding, roof is nice. 09 waterheater and 2002 furnace.

foundation looks good.

Car port on side of house fenced back yard with single car garage. nice sized yard. no sure how to rate neighborhoods, I wouldn't be afraid to walk there at night. ha

Total finished sq ft 1,022

Built 1946

Central Air

Cost Assumptions

Price $60,000

Dp $12,000

Improvement $1500 (Egress window)

Closing $2000

Total cost $64000

Cash Outlay $16000

................................................................

Financing

Dp 20%

Financing amount $48,000

Interest 4.5%??

yrs 20

Payments $303.67

................................................................

Revenues

$850 monthly

Renters take care of utilities

Annual $10,200

.............................................................

Expenses

P Tax $1513

Insurance $600

Property Management 10% ( I wouldnt do this for awhile, hoping to get enough rentals where I need to use them)

Utilities estimate $60 month x 6 months $360 (just to be safe i guess?)

$2,473.01

............................................................

NOI

10,200 - 2,473.01= 7,726.99

.............................................

Cash Flow

7,726.90 - 3,644.04 mortgage

4,082.90 Cash in Pocket

.........................................

Cap Rate

7,726.90/64,000

= 12%

....................................

Cash on Cash

4,082.90/ 16,000

= 25%

I am trying to run all the numbers using the article "Introduction to real estate investment deal analysis."

I am not sure if I am doing this correct or if i am even close. I am very new to this!

Flooring installer trying to turn real estate investor!!

Thanks for any advice! Very much appreciated!

Sorry if i forgot anything!

Mehran

Thanks! I will look into that asap! I meet with a lender Monday just to see where I sit and what my goals are. I think I will post a few deals and run the numbers myself. Hopefully I will be on track and if not maybe I can get some advice!? Ha I can't wait to do a deal but I really want to know what I am doing first. Thanks so much! This site is amazing!

I don't have any rentals personally but have done a few jobs in them. Most of the time I do vynle tile or laminate snap together. Some sheet vynle too. Seems like restraunts like the commercial sheet vynle on the bathroom floors and on wall behind urinals. Others, just some left over tile from some bigger jobs that I can get for a little cheaper. It's hard to beat the vynle tile, seems like it can really take some abuse. Sheet vynle is pretty cheap, cheap to have installed and helps with water to an extent.

Of course all of this in my opinion.