All Forum Posts by: Michael Braatz

Hey all,

Silly question, how do you "mention" someone in a forum post.  I've seen it done many a time and I'm sure it's something simple.

ie @Michael Braatz would be highlighted and send me a notification.

Thanks,

Mike

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Hello all,

My two partners and I are finally getting into looking at properties and I was hoping I could get some input from some more seasoned investors in my area regarding CapEx.

I have seen a few ways to go about estimating CapEx but I want to focus on a more property by property basis. The list from Brandon Turner for the most common items include; Roof, Water Heater, Appliances, Driveway, HVAC, Flooring, Plumbing, Windows, Paint, Cabinets/Counters, Structure, and Landscaping.

Would anyone in my area care on sharing some of their typical numbers in regards to these items(and any I may have overlooked) in terms of cost and life expectancy or any other tips?

The properties I am looking at are generally; duplex, older than 1940s, 120k or less.

Side question, If a home has all new windows and the life expectancy of windows is say 50 years and I plan on holding the property for 25 years, would you still take into account those windows?

Thanks in advance,

Mike

Sorry Sam,

It is 2 units both 2 bed 1 bath.

Thanks Rob.

It does not have a garage.  Thanks for the insurance number, super helpful.

I appreciate all the input from everyone, it seems like this deal will fall a bit short of when it comes to cash flow and IRR with the adjustments but this was a great experience getting some real numbers involved.

Thanks for the confirmation Paul!  The duplex will need little to no rehab(still need to see the second unit). The maintenance was just to be safe with my limited experience. I also really appreciate the water/sewer estimate.

Thanks for the reply Joshua!  

They are 2/1.  I appreciate the advice on Vacancy and management.

I would like to, though I am not certain on if that would force me to lower the rent in my area.

Hi all, 

I am still quite new to Real Estate Investing and I found a duplex that may just work.

I wanted to get some opinions on a quick analysis of the property.

duplex in West Allis Wisconsin. Listed at $100,000. 25% down 4.5 rate 30 year. Expected rent $1500/month. $3,000 tax/year. Based on some research I am preliminary estimating $200 /month in maint and $200/ month in CapEx. Vacancy 5%. Insurance is a straight guess at this point at $800/year. Self Manage.

Hope I didn't miss anything!

When I plug this all into a calc i get $328 monthly cash flow.  Again I am very new.  If anyone in the area thinks any of my numbers are a bit off please do not hesitate to correct me.

I have read that with the higher taxes in my area the 50% rule may not apply and is usually better to be pushed up to a 60% rule.  With that I got a slightly over 9% cash on cash return rate.

thanks for the tip Pat! We have a preference for multi, but are certainly willing to and will look at SFR as well.