All Forum Posts by: Nader Hachem

@Jody Sperling I get the point on 401k restricting your investments, in a situation like mine where the company offers a ridiculously good match (10% on 8% investment), it's hard to say no to an automatic 125% ROI.

As far as the Roth, I actually invest into that, but if I was to come up with a real estate deal- I wouldn't mind reaching into that and using some of that money for real estate! Not disagreeing on your points though. Id love for RE to be my main focus of investments

@Nick Barlow do you find that 25% usually works? Does it work when you purchase the property or does that end up too low at sometimes? Also, 25% with prop management or not?

Curious on what investments people have out there. I'm heavily involved in index fund investing in like 401k and Roth IRA.

Is real estate your favorite type of investing? Why or why not? Why would you prefer it against the other types of investment?

Hey all,

I have a window in my home bedroom that seems to have old caulking that's looks like it's breaking down on the side of the window and I want to recaulk. The gap is maybe an inch big.

On the side of the window it looks like there is this yellow foam pad behind what was the caulking that now broke down. How would I approach this? Just remove the old caulking, clean and recaulk over the pad? Or should I replace that pad too? Not sure what it is.

Thanks guys

Yeah, makes sense! I've been looking at sub 200k, more specifically 125-175K with a rent of $1300ish is what i'm finding. I'll keep digging on the MLS to see what else is out there. following up on that question though, does rent-tax-insurance-mortage = profit to you? or would you consider vacancy, etc.

 Hi Lesley. Thanks for your response! it seems to me like you're saying what i need to hear - live outside the spreadsheet and focus on the big items (roof, ac, furnace, etc.) When i run my numbers forward i'll include a percentage for vacancy and repairs - but will try not to get too caught up in it. Looking at the bigger picture includes things like you said, neighborhood, etc. 

Thanks for the knowledge!

@Jim K. Of course, I definitely do take all advice with grain or salt but also know that many people here know much more than I do - through experience!

@Dan Leyden thanks! I think that 25-30% came from 8% vacancy, 10% repair and 10% property management. I've heard this a few times while reading brandons book and listening to podcasts I wouldn't be using a property manager to begin with - I'd like to learn that part and one shouldn't be too hard to handle.

Thanks for the extra push to get going!

So i'm 24, currently looking to purchase my first rental property - a SFH 3br, 1-2bathrooms, sub 200K, but i've been hesitant to purchase because i don't yet trust myself, and a bit of fear, since obviously it's my first. I've read books, listened to podcasts, watched videos and so much more but i have one question about deal analysis.

What makes a good deal and how do you, or others you've seen, run their numbers? Each area is different and i know in the midwest, especially here in MI, we see more cashflow in our deals. The way i've been running my deal analysis is looking for properties on the MLS, and aim for a house that could cash flow me $150/month. I would honestly be okay with $120 a month because i think getting the first property is more important to that extra cash flow to me.

That number is after mortgage, insurance, taxes and 25-30% for vacancy and maintenace. My question is, how do you approach deal analysis? I see people who say they make $500 a door but thats because they're not accounting for the 25-30% savings. if that's how things are approached then i think i've found a whole bunch of deals.

I rarely find deals where the rent-(mortgage+tax+insurance+savings) is around what im looking for. I'm fine with this and I'm dedicated to keep looking, I just want to make sure I'm not passing up deals due to lack of knowledge.

So am i approachijg the analysis portion wrong? should i be less concerned about how much cash flow ill have after the savings and more focused on the profit after only mortgage + insurance + taxes?

@Joe Hammel great insight! Thanks