All Forum Posts by: Logan L.

Hi BP community!

I am a relatively new investor in Fayetteville, NC. My first rental property is a 4 bed, 3 bath single family. Purchase price was $150k and current rent is $1,475. My analysis of the property is as follows:

- Income: $1,475

- mortgage (taxes and insurance incl.) $920

- no HOA fees

- no landlord-paid utilities

- I self-manage so no property management fee

- pest control service $30

- CapEx: 10% or $147.50

- Vacancy: 5% or $73.75

$1,475 - $1,171.75 = $303.25 positive cash flow.

In regard to 1% rule, my property is currently sitting at 0.98% yet I’m seemingly still cash flowing $300. Can someone tell me if I’m missing something? Thanks!!

Thank you for the helpful advice!

I've noticed that it can be challenging to find multi-family homes on websites like Zillow because, at least to my knowledge, there are no specific filters to search for duplex/triplex/quadplexes. I am primarily interested in using my VA loan to house hack a three or four unit multi-family but it is proving very difficult to find these properties. Any suggestions, tips, tricks for me? Thanks a ton, everyone!

- Logan

Jeff Kehl, you helped me realize that there are quite a few more things I need to consider when looking at a property, thank you!

@Daniel Hyman, no I haven't checked that out yet but I'm certainly going to, thanks for the heads up!

Thanks for your input! :)

Yes, the pricing is drastically different. A good friend of mine from the Bay Area has been sharing with me just how crazy rent is out there!

BP family, I am currently looking at a foreclosure located in a good area of a small town near several schools and businesses. It is a 3 bed 2 bath, 1,700 sqft. The price recently dropped from $63k to $49k. The only apparent necessary capital expense is redoing the roof. My realtor estimated that if I put $20k into it, it would sell for approximately $120k (current Zillow estimate of property value is 90k). I would likely have to take on a partner to afford the down payment (I have a partner lined up for this specific deal). The Zillow estimated rental income is around $800. Income minus $400 for expenses (50% rule) minus $378 (P&I, insurance and taxes) leaves a pitifully small $22 cash flow. This property is appealing to me because it is selling so far below market value but I'm concerned that if I was stuck with it for a while, I would only break even or possibly lose money on it. I would love to hear your thoughts on the situation, although I am struggling to even come up with the right questions to ask. Thanks so much for your help! Logan

Svetlana Foley I'll be purchasing in Wisconsin for now at least. Thank you all for the warm welcome!

Hello Bigger Pockets Family!

My name is Logan LaGesse, I'm an active duty military member currently serving in San Diego. I became interested in real estate after reading a book I now know to be extremely well-known called Rich Dad Poor Dad which was recommended to me by a friend. I have family who invest in rental properties and now it's my turn to join in. I am interested in small single and multi family homes and am currently in the process of buying my first property! I have been an avid listener of the BP podcast for quite some time now and I'm excited to be part of the online community!

Logan LaGesse