All Forum Posts by: Nathan Patterson

@Allen Smith  The cash flow might be thin but if your not losing money.  Then you are successful with your first property.  I think that is when I will be most nervous as well.   Everything up until having an offer accepted, you can bail.  After its accepted...well its much more real then. 

Welcome and great job with making that pull.  Any details on the Triplex that you can provide.  What made you most nervous/scared to purchase? 

You should be able to file with the state for a loss of title and be able to get one.  Sell it, part it out, scrap w/e you want.  Should be able to get a few grand off of it to help with rehab. 

I've always seen the 3x the monthly rent.  As a renter I even came across one that was 4x monthly income, not sure how that turned out.  I didn't rent from them, but yea seems like 3x the monthly rent is what most do.  

So lets say you did get this property for $60K, rehabbed it and are going to flip it. I'm assuming that is what you will do since you posted in other sales and ARV. Does HOA allow this? How does it being next to a train station affect resale? Are people ok with living next to a railway or is it seen as an issue and will deter buyers? In what state are the other two condo's that are for sale? Why does the current owner want to sell, if you can find that out? There might be something driving him out. Will HOA allow renting if you can't sell it? Think about from an end user aspect as well, other than just from an investor aspect.

Thank-you for your service. 

I'd got with the younger couple with the baby and dog.  Why?  Yes they are moving but they have a child which will make it a little more difficult to move again.  They seem to be a little more settled in life, where as the other couple can get up and leave whenever they would like.  I'm also not as hesitant with 2nd couple over the 1st.   They might be a little more appreciative of your property because they are moving from so far away.  

They other has MANY more options open to them with such a high salary.    

For what it has been through.  It looks substantially nicer.  Any exterior shots? 

I'd ask them why they think the house is haunted.  There could be a medical issue, such as carbon monoxide poisoning.  If they really want to leave the house, I'd break the lease for them.  

Why keep them miserable and risk a bad rep as a landlord plus possible damages to your property.  

Were you including utilities with the rooms?  Average tenant length?  How did you deal with small issues, such as trash, too many guests,noise etc.?  

I've looked into this in my town and these are some questions I've wondered about. 

Over the past few months I've been practicing my hand at analyzing. Basically I'll find a property on the MLS and then try and estimate rehab costs, do research to estimate the rental amount, how much to set back for cap expenses etc.

Usually when I analyze these properties I deduct mortgage/interest first before deducting money for cap ex, repairs, insurance etc. Reason being is because the PITI of a property is going to stay mainly fixed over it's life while the rest could be flexible.

My question is this, what do you do?  Do you deduct before or after paying debt?  I feel like this is an ignorant question but maybe others are wondering the same.