All Forum Posts by: Account Closed

@Account Closed Thanks for your feedback! 

1. What % of the purchase price should I account for closing costs?  

2. Sounds like (10% rent) for vacancy is a better estimate. 

@Bob E. you're right? I was using numbers for 1 Bedroom / 1 Bath from Rentometer. 

Is there a way to estimate rent by the room rates on rentometer or is craigslist the best source? $12,500/month Seattle podcast was super! 

Demand for housing in California is greater, but it's also tougher to cashflow. I guess the best way is to find a market which is underpriced and expected to increase in demand in the near future. 

@Brett Tvenge Thank you! I'll use $550/room for future analysis. 

@Austin G. Congratulations on your move to Arizona. I'll take a closer look at the property - Thank you 

@Rich Jacome - Thank you for pointing out my error with annualizing monthly cashflow. 

@Brett Tvenge - It's expensive where I live and investing here would mainly be an equity play. Based on what I've heard, Arizona is a solid place to start.  

Of course, if in 12-16 months we see a 10-20% correction and if the numbers work, i'll consider investing in Irvine. 

My goal is to have $10k/month in free cashflow in 5 years by moving into 1 househack per year in the least expensive way possible. 

I'm new to analyzing deals and hopefully you could take a look to see if the numbers make sense. Thank you so much in advance! 

3714 W GLENDALE Ave Phoenix, AZ 85051

Link - https://www.redfin.com/AZ/Phoenix/3714-W-Glendale-Ave-85051/home/26959573

Asking Price - $319,000 5 Bed / 3 Bath Sqft - 2,449 Built - 1961 Lot Size: 6,460 Sq. Ft

Income

Rent/ Room - $846/month ( Rentometer average)

Rental Income - $3,384/month (Rent 4/5 bedrooms)

Total monthly income: $3,384/month

Expenses (monthly)

Property Taxes - $170 (Smart asset)

Insurance - (Mortgage + Homeowners) - $151 + $67 = $218

Utilities

Electric - $200

Water - $50

Sewer - $50

Garbage - $20

Gas - $225

HOA - 0

Lawn Care - $25

Vacancy - $254 - (6% rental income)

Repairs - $100

CapEx - $100

Property Management - $423 (10% rent)

Mortgage - $1,432 ( Principal + Interest) of [$319,000 at 3.5% and 30 year fixed]

Total Monthly Expenses: $3,267/month

Cashflow

Income - $3,384

Expenses - $3,267

Total Monthly Cashflow: $117

Cash on Cash ROI

Down Payment - $11,165 (3.5% FHA)

Closing Costs - $3,190 (1% for escrow + title company)

Repairs - $7,000

Total Investment: $21,355

Annual CoC ROI

$117/ $21,355 = 0.548%