All Forum Posts by: Nader Hachem

 Yeah I’m not sure if this was originally bought as pre stained. What I’m trying to do is have the contractor sand it down and restain. But I’m not sure if the uneven staining in the boards from each other will go away and be more even. Or will it vary even when it’s sanded down 

I got a couple quotes from two different hardwood refinishers for my primary residence. I’m trying to find a nice stain but one said my floor is red oak and we’ll be able to do a certain stain, the other said it’s white oak and we wouldn’t be able to do that white washed stain. What do these pictures look like? 

Hey,

Welcome Damiete! I'm down here in Dearborn as well, working as an Engineer! Would love to connect on your experience in RE and plans to move forward. Sent an invitation to connect!

 I may be misunderstanding but are you accounting property tax and insurance as 5% each? I use actual values for those, or closest I can find to actual. So would you still say 10% for property management 5% capex, vacancy and maintenance, 25%? 

 Good point! I don't so let's go with a worst case situation. 

I'm looking to get my first long-term single family rental. I plan on buying and holding these rentals for the long run.. 10, 20 years. Right now, rental interest rates are a around 6.5-7% from what i see. How are you guys using this in running your numbers for deals?

Are you guys includes a future number, say 5.5%, and assuming you'll be able to refinance? Or are you using the number you guys are getting quoted for interest rates? I also include around 28% for vacancy, maintenance, capex, and property management expenses. I plan on managing myself for a while but when the load gets too heavy, i want to pass it on and still have the deal make sense.

I have a cash flow goal of $200/month/house which i use to guide whether i want to further look into this house and make an offer.

Thoughts on analysis for single family long term rental houses?

Curious, what kind of cash on cash yield do you shoot for? In my situation, i find it that properties within my price range (110-175K, needing about 30-35K of my own cash), are the ones that usually cash-flow better. As far as cash on cash yield, it seems since i'm likely going to put 20/25% down on my first property, that number is usually lower. 

The one benefit i see greatly from real estate is there are multiple ways to generate wealth. Appreciation, cash flow, tax benefits, equity, etc. With that being said - i find it difficult to make a decision based on cash on cash yield because i know with all factors involved, it's likely to be a great deal in the long run (assuming it's not in a completely trashed neighborhood, or a money sucking property)

With interest rates rising, looking to purchase a rental property now is more expensive. This results in lower cash flow, and potentially makes what would be a deal 1-2 years ago, into a negative cash flow property now.

How are you looking at rising interest rates? When running numbers, are you still sticking to your cashflow goal (of say $200 a month) or are you okay with less cash flow a month in the hopes of refinancing some time in the future. Since long-term rentals are exactly that, long term, it's important to not only focus on the numbers right now, but also in the future. 

One other thing I've been running into is running my numbers and finding very high property taxes. From the numbers i've been running, it seems like property taxes on non-homestead properties in my price range (150-200K) are around $500 a month, which seems to kill any deal in itself. Does anyone else deal with high property taxes that potentially sway the numbers? What are your thoughts?

I’ve been a biggerpockets user for a while now and primarily on my phone. I could’ve sworn there used to be a biggerpockets app in the App Store. Are there plans to create one?