All Forum Posts by: Nate Huber

Hey @Galen Ikonomov- Appreciate that response! No, the features are not new, so I will adjust accordingly. However, maintenance is very low (I know because I live in the house now!). Very sound home. And thanks for the tip on vacancy. 

Also, glad you said this. I'm noticing there's quite the dichotomy on this forum of people who rent out for equity and those who live and die by cash flow. I'm the former. I don't plan on building an "empire" and will not be relying on this income whatsoever. It's an addition to my portfolio more than anything. Basically I would like to keep it for at least 30 years, make some mortgage-free income for however long I'd like, and sell whenever I'm ready to!

Is there a cash flow or COC you like to see?

I'm trying to make sure my calculations are as accurate as possible. Currently, I'm running my numbers for my single-family 3BR/2BA as follows:

- 5% of rent for annual repair and maintenance 
- 5% of rent for CapEx
- 6.2% of rent for vacancy

Vacancy is so specific because I pulled the number from the specific city's performance.

How do these numbers look for a single-family 3BR/@BA in nice neighborhood? Keep in mind, house itself is in excellent shape. Should I tweak anything?

How much of a COC return do you aim for? I'm sure your goals like vastly different than mine, so I'll also ask: What do you think a solid COC return would be in my situation. I've seen everywhere from 3%-12% online (15%+ for serious property owners).

Hey @Jane S., thanks for the reply. I will say what you described is really what I do want to do at the end of the day. I don’t plan on pivoting to real estate, but want to dip my toes in the water. My plan was to rent out this one property for now (and have a tenant pay down the equity as you mentioned) as I learn and determine my interest in the industry. I do not plan on rapidly expanding after that. It’s also a very manageable mortgage for my current salary too, so I wouldn’t feel as pressured or tight on cash if things didn’t work out.

This seems like a pretty good way to start, or would you disagree? 

Hey @Matt Bishop! Fortunately, I have a very well-paying job. I'm not worried about making a down payment on my next primary residence. 

Hey @Dave Foster Appreciate the response! This was very helpful, and that's the way I'm leaning. I am ready to get more involved in real estate investing, but I don't want eagerness to get in the way of identifying the right opportunity. 

I think I'm hesitant because I don't have any experience picking an investment property (and that seems like a bigger task!) Do you have any pointers or advice on how to get started there? I like the idea of taking profits and working towards both goals. 

@Bill B. I do not, but that would certainly be nice :).

Yes, that sounds about right. My calculator is showing -$0.54%, but regardless, it's right around breakeven. And the property appreciated 40%, from $275 to about $380. So about 38% to be exact.

So what are your overall thoughts on it given that cash flow isn't my overall goal, but utilizing the property as an addition to my portfolio? Sorry if I'm not tracking with everything that you're saying.. like I mentioned.. I'm new to this all so I appreciate you clarifying. 

Why exactly is it $500 negative now? Because of the increased interest rate? I plan on moving to the new home regardless, so that would be a factor no matter what.

Hey @Bill B. Thanks for the response! So first, yes, the current value of the home is about $380k (up from $275k).

I'm also realize that I should have included the loan details. They're in my comment above. I do have $10,212 in interest. 

Hey @Jon A.- Thanks for responding. I think it's because there are a few additional numbers the calculator I used (but I didn't post) took into account. 

Interest Payment $10,212
Return after Interest $4,720
Down Payment $9,625
Principal Paydown $4,772

I'll update the OG post with these.

Are you saying that I actually do have a positive leverage though? Or were these numbers helpful?

Should add- I think what I'm doing is a form of BRRRR but not exactly. I'm not as concerned with pulling money out for my next house. I will have capital for this.