All Forum Posts by: Mike Bean

Thanks @Alexander George - I think depending on how old the place is I could lower my CapEx percentage. Another thing is I account for property management even though I'm planning on owner occupying and managing myself. I saw someone else in BP forums do this because, like me, he didn't plan on living there and managing by himself long term. Technically PM for me in my first deal is going to be 0% so I guess I could take that portion out but I feel like deals that cash flow can still be found using my numbers.

I'm really trying to fine tune my analysis spreadsheet so I can start analyzing deals daily.

@Enis Shehu I will keep my eye out for details on the next meetup. Thanks for the heads up!

Bare bones and getting $1650?? I mean Shrewsbury St. is definitely a desirable location but wow. I need to find some 3 deckers with those kind of numbers.

I put together a spreadsheet for the analyses and am having a hard time finding places that would cash flow for me (even at my higher estimates for rent). I'm using 10% PM, 8% Vacancy (1 mo.), 5% repairs, and 10% CapEx. Are these decent numbers? And do you know a good method for estimating utilities?

@Brian J Allen I definitely agree that the tenants can make or break your investment. Identifying the demographics that would potentially rent is a factor in my property choice but do you think a detailed tenant screening could reduce those risks? 

For Worcester property analyses, I’ve been using $1100 and $1400 as expected rents for 2 beds and 3 beds respectively. Do you think those numbers are appropriate or is it dependent on the sub market? 

@Enis Shehu I'm in a similar situation as @Maxwell Lewis though my goal is to have a 3-4 family house-hacked by the end of 2019. I went to college at Framingham State and think that Framingham is a good place to invest if you can find the right property. With the college being there and the fact that it recently became a city I can see big things happening there. Just driving through in the past weeks you can see a lot of new developments which is a good sign.

I'm interested in either starting my investing in Worcester or Framingham by the end of 2019. I will be attending meetups in both locations to try to absorb as much as possible and network with as many people as possible. I like the format of your last meetup - wish I could have been there. Adding you to stay on top of future meetups!

@Brunno Goncalves I'm unable to make it to this event but I'm interested in the February event. Please share details when you have them, Thanks!

Is it possible to get a mortgage for auction.com properties? Specifically wondering if I could maybe prequalify for an FHA loan (if that is even possible) or a 203k loan in order to get a property from auction.com or from a live foreclosure auction?

I just graduated college in the spring and all I can advise is to weigh out all your options. Looking back I would have done things differently (whether that’s commuting to a 4 year college or going the community college route). Took me an entire summer to land a job and based on my commute to work and my student loans starting this month, my savings rate is very low. My goal is to have my first property by the end of 2019 but due to my high expenses it is going to take some serious focus.

Don’t incur debt!! If your goal is financial freedom and full time investing then you will have the money down the road to pursue whatever education you want! Good luck.

@Davey Davanoski one of the easiest ways I learned a lot of terminologies was actually right here on the forums. A lot of times the real estate-related terms will be underlined and you can hover over them and sometimes click a link right from there that explains the term.

Some good advice would be to just keep reading articles and listening to podcasts and ask plenty of questions. After all, this is the age of google!

Hi BP! I’m looking for some good links to video’s/ blog posts/ articles on how to master analyzing deals - specifically looking to house hack and owner occupy.

When running numbers on properties I've seen things like CapEx, property management, vacancy, etc. that people deduct from monthly rental income. What are some solid benchmarks for these numbers in terms of a %? Additionally, are these calculated as a percentage of rental income or purchase price or?

@Kelly Ikpeama are you going to live in one of the units of the 4plex? Look into an FHA loan. I'm sure credit is still considered but your credit isn't bad. They require 3.5-5% down but you will also pay PMI. Private lenders have one interest in mind so, as previously stated, be careful and read through any agreement thoroughly.