All Forum Posts by: Nicholas Kitchen

Hello, hope everybody had a great Easter!

Just curious what is typically used to estimate what ordinary maintenance/repair costs to get a good judgement of NOI to help determine deal analysis.

Thank you,

Nick

It's the area... It's highly desirable. I like the units here because it's by Spripps Research. The HOA is high yes but for a reason. The gross rent is higher because of that as well. Also, the duplex I am wanting to buy with this cash is $260k in a great neighborhood by the intracoastal and rents are $1200-1400 for the are. Duplex has been not producing income because an older guy owns it out right and has been "renting" (for free) to his younger sons. So there is no history of expenses and income.

It's the area... It's highly desirable. I like the units here because it's by Spripps Research. The HOA is high yes but for a reason. The gross rent is higher because of that as well.

I have a condo I purchased a few years ago. I'm cash flowing about $230 a month. Bought for $97k, same units selling for $140k, and I owe $68k on it. The HOA is $447 a month. I am trying to find out if I should do a refi and reduce my cash flow to about $100 a month and use that cash for a duplex. Or if I should sell it and use that cash for the duplex with some left over for a possible other deal as well? I'm concerned because now I have 2 condos in the same neighborhood and if for some reason both are vacant , that's a hefty HOA expense. Should that worry me? Thank you in advance for your input! These are in Florida by the way.

Thank you for all the responses! So, it sounds like most people run all their properties under one combined account as if it was all 1 "business". Makes sense. And you keep it separated using QuickBooks or Excel or something. I have been using Excel with my 2 properties. I have a pretty good spreadsheet.

Thanks again!

Nick

I want to get an idea of how people organize their bank accounts. I have 2 rental properties, looking at a third - a duplex. Right now, I keep both rental properties in separate bank accounts from each other, as well as my personal accounts separate.

1) At what point do you start to commingle these accounts (if at all)?

2) When are you "big" enough to use money from other properties to "borrow" (if you will) for a down payment for another property, for example.

3) At what point do you need to start thinking about putting these properties under an LLC or DBA?

Thank you for your time and input!

-Nick

Okay, I see... so if I change that, it shows an 80% ROI but still shows a LOSS after holding the property for 5 years. (I'm assuming because of the interest paid on the debt).... Still seems a bit odd though... Can't figure out if it's because I'm doing something wrong in the spreadsheet or that's just the way it is lol ...

Updated Spreadsheet

Thank you!

If you own rental property and also have a full time job, but you do not have an LLC (or any business for that matter), can you still deduct a car lease from your taxes? My girlfriend is a realtor, and when she didn't have herself setup as a PA her accountant deduced her lease payments. So can I do the same ? Thanks in advance!

Nick

I'm having a tough time deciding what I should do with my rental unit. I want to take some cash and start investing in multifamily properties.

It's a 2/2 Condo in a highly desirable location.

Purchase Price: $97k

Owe: $68k

Cash Flow (after debt service): +- $250/month

Market Value - currently selling for +-$150k

The HOA is $450 a month, which is included in the rent price of $1550 a month, so it's not that big of a deal.

So I'm trying to determine if it's more beneficial to sell it, take the cash and look for a duplex, or get a 2nd mortgage and take some cash out, since I'm so far in the green.

Thank you in advance for all your input!

-Nick

I am new to real estate investing... Although, I have had a condo for 4 years I have been renting out and making a pretty decent return. purchased for $97k, now they are selling at +-$150k and I only owe $68k on the property. Cash flows (after debt service) is about $250 a month.

I just purchased another condo similar to it that I will rent out furnished (these are highly desirable in my area). I will see how that works.

Okay, on with the subject... I am interested in looking at duplexes to purchase. I have created an excel spreadsheet that shows a 5 year holding analysis. From what I have been reading, they say to project 5 years out. So I am attaching this spreadsheet to see if somebody can take a look and see if it looks accurate. I want to make sure I have the correct formulas, etc before I start to use it. I have an example in there for a duplex that is for sale in my area I am looking at. The cash flow looks great, but for some reason after 5 years, if I were to sell it, it shows a negative ROI.

So, if somebody doesn't mind checking this thing out, it would be greatly appreciated. Anybody can feel free to use it, of course. 

Thank you in advance!

Dropbox Link