All Forum Posts by: Nate Estelle

Thank you @Jimmy Murray!

I also just learned from my real estate agent that lenders typically do not render mortgages for under $50,000. So now I'm in a rough spot because I want to get started investing but do not have the capital yet from my family income, and I do not personally know any private lenders. Suggestions?

Hi all! I'm analyzing the numbers of a SFR property I found on Trulia before I reach out to a real estate agent to look at the property. I have not done any deals yet but this one looks promising to me because the owner has a tenant in the property until September 2018 and the property only costs $10,000 so it seems like my risk is pretty low starting out. The city is one to which my wife and I plan on moving in the next year, and one where I currently work, so we would not need to pay property management fees for at least this first year.

I have a few questions for you pros on here:

1) When investing, should I purchase with a 15, 20 or 30 year mortgage? The 30 year option yields me about the $100/mo net, but I prefer a 15 year mortgage to pay off sooner. Cash flow, though, is my primary objective.

2) I've attaches some photos of the income/expense sheets. Could someone look these over and correct me if I made any errors?

3) Do I need to account for replacement reserve if I have accounted for repairs and CAPEX already?

4) I don't have an exact number yet on how much insurance would cost annually, but that's an estimate based on some other properties in the area I know of.

Thank you so much in advance!

This was a fantastically helpful thread. Thank you @Derek Luttrell for posing the questions, and thanks for all of the responses!

Thank you @Josh C. and @Douglas Orr for your help!

@Josh C. I used to work as a junior property manager for a real estate investor and he budgeted for attorney fees that may come up for evictions, as well as reserves for marketing and paying for background/credit checks. I'm wondering how much one needs in cash reserves before beginning.

Hi! I'm an aspiring investor and am looking for some help in getting started. I need some advice from experienced investors, specifically in the Muncie, Indiana area. Here are some questions:

When starting out, how much cash should you have in addition to your down payment for things like possible attorney fees, credit check fees, marketing, etc.? 

Who are some quality real estate agents in Muncie?

Who are some reputable attorneys in the Muncie area?

What is market rent in the Muncie area, specifically in zip 47302?

Thank you so much in advance for any and all advice!

I am an aspiring real estate investor and am looking to invest in Muncie, Indiana. I have not completed any deals but am looking to get into a deal. Does anyone know what market rents are right now in Muncie, specifically around 47302? I'm looking at a specific property on Trulia and do not yet know how many bedrooms are in each unit.

Thank you for any help!

Hi everyone! I am an aspiring real estate investor and have had my eye on a triplex in my small town Indiana area for almost a year. The purchase price was recently reduced to $30,000.00, at which point my interest was elevated because I'm a full-time social worker so I don't have a lot of personal capital to work with. The concerning part for me is that it was listed for $42,999 March of 2016 but no one has jumped on it, making me believe there is something undesirable about this property. As a newbie, I'm not sure what it is yet. My realtor, a past property management colleague of mine, walked me through the property today. The downstairs unit is a nice 2-bedroom unit, upstairs has a decent 1-bedroom unit and a studio unit. 

The gross rent is presently $13,800, but I estimate it would be $15,000 at market. Tenant pays gas & electric on downstairs unit. Owners pays water, electric and gas on upstairs units, as well as water on the downstairs unit. Tenants currently supply their own appliances. Downstairs tenant just moved in paying $500/mo, and one upstairs tenant said he is moving out soon, paying $325/mo. Downstairs unit has washer/dryer hookups. Lease term is M-T-M. The property is located near main street in the small town in a good school district, and it has parking for each tenant but no lawn. Central heat but not air. County assesses the 107-year old property at $58,100.00, and last year property tax was $1,138.64. The plan would be to rent all three units. One insurance provider in town said they would not insure the property without a new roof installation and painting some exposed wood. 

Does this sound like a good deal? Any help from the pros is appreciated. I can get more information if needed.

@Bob Okenwa Thank you!

Hi all! My wife and I are looking at perhaps purchasing our first investment. It's a triplex in our area. This would strictly be a buy and hold, not a purchase for us to live in. We are currently renting and are not sure we will purchase for ourselves because we are not sure we want to stay in the area for the next 5 years. It currently has 2 of the 3 units rented. Our realtor is going to walk us through the property this week.

Anyhow, I am writing up cost estimates to see if this is a good deal. How do you typically estimate repair costs in your annual budget?

Thanks!