All Forum Posts by: Nilesh Makhija

Hey guys I'm looking for homeowners insurance policy on a condo rental property in VA. Also I'm a newbie so any advice on what kind of policy would help too.

I have still not looked at master HOA policy, but it looks like it covers the exterior and we still need policy to cover the interior. Help needed !!

Can anyone make recommendations?

Thanks,

Nilesh

Hey guys I'm looking for homeowners insurance policy on a condo rental property in VA. Also I'm a newbie so any advice on what kind of policy would help too.

I have still not looked at master HOA policy, but it looks like it covers the exterior and we still need policy to cover the interior. Help needed !!

Can anyone make recommendations?

Thanks,

Nilesh

Michael Baradell - I think it all depends on your real estate goals, primary there are two cash flow and appreciation. For me low cash flow is understandable given I am confident of the appreciation values as you said it's in high demand area. So if the plan to get in and get out may be at some point in the future then I think it's a good investment to get in. Again many investors here on BP would not say appreciation is a good idea but some markets are saturated and we do not always have low prices properties to get in. Also I would not completely neglect numbers I would atleast target 7-10% of cash on cash returns or 7-10% of cap rate. Hope that helps !! Nilesh

The Columbia bank was flexible is discussing various options..

Looking for private investors for investing in projects based in Indiana. Currently looking to raise $70,000 for 10% returns in 8 months. Please contact me for more information. 

@Tim Little - Agree 100%. Once you k now your farm area, then you can start focusing. Let me know how can I help

@Bill P. 

Never thought about the interest rate cycle. And specially when I am considering ARM's. I am also in 2 minds due to low COCR and low cap rate. Will do my additional due diligence.

Thanks a lot for the quick comment..

Hello Everyone,

Wanted to bounce back a deal analysis which I am working on...

Purchase Price - $150,000

Closing Costs - $6000

Total Acquisition Costs = $156,000

Rental = $15,600 (1300*12)

Vacancy = $1560 (10% of Rental Income)

Total Income = $14,040

Annual Expenses

Taxes - 1200

Insurances - 1200

Maintenance - 1560 (10% of Rental Income)

HOA - $65*12 = $780

Total Expenses = $4740

NOI = $9300

Mortgage = $7312 (4% ARM with 15% down-payment)

Cash-flow = $1988

COCR = 7% 

CAP Rate = 6% (9300/150000)

Now I am acquiring property for a 10% discount based on ARV using the comps from MLS (0.5 mile radius, similar type and last 6 months duration). So potentially the net ROI would be good in the future, but I am concerned its not a great cash flow in the present. Now if i increase the rent by 50 bucks the COCR jumps to 9.5%.

Thoughts?

@Tim Little - Welcome to BP!!

Having watched DC and Baltimore markets, you will definitely attractive deals at both the places, the only difference I have found is you will need much more capital for NOVA markets than in DC market. But I see good deals everyday in both the markets.

@Justin Pierce is also well versed in NOVA markets and is an experienced rehabber. 

See you around..

Calling all bird-dogs and wholesalers for turnkey townhomes, 3bd/2ba possible in Prince William County area. If numbers work can do a cash deal. Looking to close immediately.

Add me to your buyers list or call. Details in my signature