All Forum Posts by: Michael Hahn

why do you include utilites? won't tenants pay utilities on this property? 

@Jonathan Klemm I appreciate the thoughts, & that terminology will be helpful as I continue my diligence. I'm looking primarily in indy. Potentially looking to build something as well as more typical house hack type scenarios.

@John Warren Thank you for your reply. Why do you say if hold period is 5-10 years it may not matter? I presume that you just mean as long as I don't need to liquidate it quite quickly, that it will sell eventually at a fair-ish price. Is this accurate? 

I'm looking to buy and hold something as a house hack. I've come across some properties I consider to be unusual and unique. For example, one property has 2 living units, a 3br and a 2br, plus a home office with a separate entrance. Each living unit has separate driveways & garages. This property is actually incredibly perfect for me while I live in and house hack. My primary concern is that it will be incredibly tough to sell down the road. How many people are out there looking for a property that is a 3br unit, a 2br unit, and a home office, right? I'm just trying to figure out how to factor this into the equation. I suppose it could certainly take longer to sell, and thats fine, but, I'd be concerned that the pool of potential buyers would be so small that it could be subject to severe downside price volatility (aka just not being able to find a buyer at a fair price, forcing me to discount it)

Are these concerns valid, and how should I approach this situation? Thanks 

Wow how embarrassing. Thanks for the replies and saving my sanity. I'm going to blame this on a late night brain fart. 

Hello-

I'm stuck, cannot figure this out. I feel this calculator must have an error, it's that or idiot error by me. Attaching 2 sample rental property calcs for reference. I've been running a few flatline scenarios with 0% property value growth, 0% income growth, and 0% expense growth. Of course I'm paying down principal over time, but my confusion regards how the 'profit if sold' continues to grow over time in this scenario. 

Importantly, neither scenario is showing much if any cash flow. The highest cash flow of the 2 cash flows $100 per YEAR on a ~$160k property. The output of this report however shows a 'profit if sold' at year 30 as $108k on the $160k property. I don't see how this is possible. Basically the same story in the other report. 

https://www.biggerpockets.com/analysis/rentals/3e529fc5-cccf-4f57-a4e9-700e9874b94c.pdf

https://www.biggerpockets.com/analysis/rentals/bb2ce1eb-90ce-4660-908a-61f677522c4d.pdf

Hello-

Not super sure where this post belongs. I'm trying to drill down to figure the current fair market value for rent in a particular area. Sure, you can view current listings, but to me that does not tell the whole story. I'm much more interested in places that have actually been rented recently. I'm not savvy enough to have located this information yet. Can anyone point me to a place that might have this information? I realize your everyday landlord isn't posting information publicly, but maybe somehow being able to see expired/removed listings on a site would be great. If I'm thinking about this wrong, feel free to tell me how you assess current fair value market for rentals. Thanks ya'll! 

I think so long as you can rely on the outputs the VA provides you, it would be fine. I'm still getting my feet wet in real estate, but one of my goals is to become proficient at deal analysis. I have plenty of free time at the moment and could stand to make a few bucks, perhaps we could figure something out that benefits us both? If interested, let me know.

Is there a tutorial somewhere that I haven't yet found? 

When you run a Rental Property report through the calculator, the bottom line of the screen shows annualized return %. I may not be far enough advanced in my real estate study to understand why I'm wrong (feel free to tell me why!) but I place tremendous importance on this annualized return figure. As such, I'd like to make sure I fully understand this output. This annualized return % definitely does not include the realtor commission for when we go to sell the house, correct?