All Forum Posts by: Nathan Patterson

@Chin P.

 Thanks for the explanation, that really helps. 

I've put a little thought into this.  What I was thinking is that when I get to the point to where I don't want the properties anymore I would start to slowly sell them off.  Taking the money and investing it in some other way to generate income to keep some money coming in as I retire.  

There are a couple things keeping me from starting.  One, job.  the current job I have doesn't pay enough for me to get a sizeable enough mortgage to be able to afford a home.  

Two, location. I live in Mississippi, I'm wanting to invest in 2,3 or 4 plexes so I can house hack and get into managing tenants as well. In my town, at any given time there are from 0-2 duplexes for sale. So I'm juggling going over to SFR and getting into 2,3 or 4 plexes later on.

Three career change.  The reason why I have a low paying job is because it is temporary to pay the bills as I try to get my career started.  I graduated this past year from college and haven't had any luck finding something yet.  

Hello Fellow Mississippian, welcome to BP. 

I would recommend waiting.  Spend the next few months reading and learning as much as possible, if you haven't already.  Your view might change on what you want in a rental property.  Plus since you are looking for a job, it would keep you free to move anywhere in the country for a job. Houses can get expensive quick. 

Thanks for posting this question.  I've been using a percentage for all my expense (cap ex, repairs, management etc.) but seeing more experienced investors using a dollar amount based on the property makes MUCH more sense.  I don't have any input just wanted to say thanks. 

Welcome to BP

Great work.  Keep pushing.  What are your end goals?  How many doors do you want to own? How are you finding these deals?  How is the first property doing?  How are you finding potential tenants? 

@Everett Marshall

 Its in Tupelo 

@Bob B.It needs a new kitchen.

Hello Bigger Pockets, I'm looking for my first deal but before I jump into something I want to get better at analysis of properties. So here is what I got for a 1,218 sq. ft. home in Mississippi. Its 3 bed 2 bath, on .34 acres built in 1963. It needs new central air, exterior paint, irrigation of the back yard, it floods in bad rain. Foundation is sound, new cabinets/stove/etc in the kitchen.  Possibly an upgraded vanity in the bathrooms but those aren't necessary.  Here are the numbers that I have come across.  

Cost: $43,000 (foreclosure) 20% down payment: 8,600

Closing Costs:  not sure 

Repairs: $10,000-15,000

Yearly expenses: 

(I got these from Zillow since I wasn't sure how to estimate tax/payment etc.  County tax rate is not available online.)  

principal: 960  Interest: 960 Taxes: 516 Insurance: 804 

Property Management, Repairs/Maintenance, Capital Expense, Vacancy rate: 840 yearly each.  Figuring each at 10% of the rental income. 

Rental Income: 8400 a year at 700 a month.  This is low for the area.  Could be increased another 50-100 a month.  

NOI: 4236

COC: 5.6%

ROI: 2.4%

Cap Rate: 10%

Cash Flow: $1044

Does any of this sound correct?  Am I missing anything?  I'm not planning on buying this place, just trying to get the hang on analyzing properties right now.  Thanks for any help.    

I just started looking at houses(physically), I'd like to know what someone should look for when going over them. Such as missing roofing tiles, sagging ceiling, cracks in the foundation etc. What are some things that new home buyers tend to miss on their first purchase. Are there anything specific to 2-4 plexes that aren't relevant to a SFH.