All Forum Posts by: Stephen Lyons

Mr. Bandas,

Thank you for your reply. While you state you are not an expert, you have completed more deals than those who are just starting in the business and I really appreciate the input. As a beginner....and a very conservative beginner at that I am very scared and want to ensure my first deal is not driven by emotions but rather by the numbers.

@Mr. Massaro, I would really like to speak with you and discuss how you got started in this business and tips that may help me avoid many of the mistakes beginners tend to make. After reading your profile you seem to be a seasoned professional and any advice you can provide would be greatly appreciated. I will reach out to you privately so we can set up a meet. Thanks again and I look forward to speaking with you.

Stephen Lyons

Hi, my name is Steve Lyons and I would not consider myself a real estate investor yet though I am hoping to get started in the very near future. The issue I am currently having is how to determine what is and what is not a good deal for a buy and hold property. I have been listening to the BP podcasts and it seems there are several different avenues. I have heard some say cash flow is the determining factor while others say cash on cash return. My realtor found me what she felt was a decent property for cash flow purposes though after taking the 50% rule into consideration it just didn't look that good. However, based on the cash on cash return (if I understand the term correctly) seems very good. Any advice on what may be a better determining factor would be very appreciated. Also if there are any investors looking to mentor a newbie in the Brandon/Tampa, Fl area I would love to meet and speak with you. Just as an example, below is the deal that presented to me. Thank you in advance.

Buy and Hold

Town home

3/2.5

1547 sf

Purchase price 78500

Down Payment 15700

Interest rate 7%

Closing costs 2%

Rent 1050

HOA 240 a month

Taxes 1750

Homeowners Insurance - Not sure, guesstimated around 500 a year

Rehab cost - Realtor says property is in very good condition and ready to rent though I have not seen it

My estimated cash flow is approimatly $100 a month