All Forum Posts by: Mandy S.

Did some more digging and found this helpful post from @Greg Scott. In this case our property is a single family home so sounds like NOI isn't really relevant.

Thread: Calculating NOI question

Hi all-

Trying to nail down the numbers that the BP rental calculator is giving us. Specifically NOI. The NOI for this particular property is $8,484. Our annual cashflow after all expenses and accounting for vacancy and maintenance is $3,624. Is NOI in this case also accounting for projected equity growth + loan paydown in the property? Thanks for any help you might be able to provide.

I've seen a few similar questions but no concrete answers.  Has anyone used a spare phone or mobile hotspot to provide wifi to a Simplisafe system to utilize the webcams?  The simplisafe system was super easy to setup and I realize it can work without wifi, but would like to be able to utilize the cameras to keep an eye on rehabs while vacant, and provide that extra layer of security.  It doesn't seem like it would require a ton of data for those cameras and I'd love to try out a prepaid or pay as you go hotspot sort of solution.

Anyone have any success with a system like this?

@David M. Got it.  Thank you again!

Thanks Elise and David.

@David M. That's helpful.  So if if rental A has a mortgage of $500 but rent is $1,000 we'd calculate that as $750 from the bank's POV?  Those numbers are comparable to our first two rentals so theoretically if each new acquisition is in line with that is there a point at which lenders will generally say "too many mortgages" or something along those lines if they're all cashflowing well?  Although we're refinancing our house for cash that's the only real debt we have (no cc, car payments, student loans, heloc, etc...) besides our rentals.

Appreciate the insights!

Hi all-

We just got started in the SFR game last year and have just filled our second rental this month. For our third acquisition we're wanting to try something more like a brrrrr. We were able to do a cash refi on our personal home which has appreciated quite a bit over the past ten years and gave us enough to cover that next theoretical acquisition.

The question we are kicking around is should we refi our first property that we just acquired last year?  We were able to purchase it for 50k w 20 percent down and its now appraising at around 85k (we got a good deal on it!)  So if we refi we'll basically get all of our up front cash back out of that house (a la a brrr.)  Our second home was also purchased with 20 percent down.  Both properties are cashflowing around $300/mo after all expenses.

So the question that I'm uncertain of is how would a refi hurt our potential for future financing for other acquisitions? If so, would a heloc be a better approach to have as a potential "emergency" fund to take care of surprise catastrophes? Or are we so small time right now that the banks don't really care either way? Theoretically if we had 10 properties all cashflow positive a couple hundred bucks a month, but all at an LTV of 75-80% would most lenders look favorably or dis favorably on our debt? I know that's a little open ended and multi pronged, but we're still trying to figure out what "over leveraged" actually means for us. We're relatively risk averse so are trying to grow our portfolio, but want to do it in a smart way.

Any thoughts about all of that?

Thanks @Aigo Pyles.  We spoke with our management company this morning and they were very helpful.  Just trying to get a feeling for how other members of the BP community tackle this.

@Anna Sagatelova.  We've chatted with our management company and have tried to be crystal clear with everyone we've met with.  Just trying to avoid having people pay application fees unnecessarily if it can be avoided since they're non-refundable.  Definitely want to be fair and equitable with everybody!

@Anna Sagatelova The application site is run by our management company, but we're doing the advertising and initial search for prospective tenants to avoid paying the additional cost which in this case would be about a thousand dollars.  Our management company is still graciously taking care of the application and screening process though.

Thanks @Mike Morawski and @John Warren.  That's helpful.  I should have mentioned that we have a management company doing the background checks and handling the application process so we don't actually have control over the application fee.  It's definitely a learning curve!