All Forum Posts by: Matt Maluchnik

I spent about $3,000 in leads and mailings and I've made a few offers using the Rental Calculator that's available as a BiggerPockets member.

I keep looking for a final Cash-On-Cash return of 10-12% year 1 (see example photo). This keeps making my offers really low, sometimes 1/2 market value Ect.... Hence no one accepting.

Am I correct in shooting for this 10-12% number?  These aren't exactly High Appreciating markets..only 1-1.5%/year.  I don't mind spending $$ on the leads to get better, I just need to make sure that my goal of the 10-12% is do-able.

Can you guys post your answer? I had the same question.

I recently started a marketing campaign and want to make sure my BUY criteria seems in-line with most investors. Goal: Buy, Hold, Rent Area: Ohio (within 1.5 hour radius of me) Criteria: Buy at least 10% below ARV, Using 20% down and a 30 year mortgage I need to achieve at least a 10% Cash-on-Cash (Using Bigger Pockets Rental Calculator) return after all expenses accounted for (Vacancies, Repairs, CapEx, Management). Sound decent?

I was reading one of the books recommended off BiggerPockets and they mentioned two different platforms to use for rental property management.  Just curious if anyone has used these, and their results:

1) Vertical Rent

2) Buildium

**Watched Buildium videos and it looks like a great application, so I'm leaning that direction.

So is anyone else figuring CapEx like this? I want to make sure I'm doing this correctly because it is dramatically effecting the offers and outcomes. Thanks!

I grabbed these numbers from 'The Millionaire Real Estate Investor' book. I've been adjusting the LifeSpan based on the situation. For example, If the roof was put on 10 years ago, I would change from 25 to 15...ect. I normally still end up with numbers around $175-$200 for the total per month. SO, when I go to use the Rental Calculator Tool...a lot of times this ends up being a CapEx % of around 20%. So I'll usually have Vacancy 5%, Repairs 5%, CapEx 20%, and Management of 10% . Am I doing this correctly?

Working on my first deal (a vacant SF home). If I get a loan to buy it I'm estimating 3% closing costs of an $85,000 loan (ARV $130,000). So that would be, $2,400. Or, I can buy for $85,000 using cash, so I can close quicker (and potentially get for a bit cheaper, but assuming not for now) ... I would then rent it out and refinance the $85,000 back out a month later. Are the refinance costs lower then using the loan to close it the first time around?

(New Investor - 0 deals) I'm looking at a duplex that already has renters (both pay $450/mo and landlord PAYS water) (asked next door duplex and they pay their own water and $500/mo) Unit 1: Just moved in and signed 2 year lease (no auto rent increases included) Unit 2: Month-2-month, been there 8 years I think rents can be $500/mo and they pay their own water. In order to get those rents do I have to wait for Unit 1's lease to expire? Or does change in ownership mean her other lease is void? I'm assuming with Unit 2 I just let her know what changes are coming and see if she's going to stay?

I just met with a bank VP of a local (smaller) bank. They mentioned that even though I'm interested in single family homes for investing... They are all considered 'commercial' investments and would require 20% down with it being spread out over 20 years. However, when I was watching one of the Bigger Pockets videos it said anything under 4 units was able to be a 30 year loan. Can anyone explain the difference in what's said? It Changes my numbers when using rental calculator.

I will be fixing up a bit then rent them out or rent-to-own