All Forum Posts by: Nikki Yankowski
Nikki Yankowski has started 5 posts and replied 41 times.
Post: Where to meet investor groups locally?
- Huntsville AL
- Posts 44
- Votes 30
Thank you, I'll check it out!
Post: Where to meet investor groups locally?
- Huntsville AL
- Posts 44
- Votes 30
Are there any in-person meet-ups or group ya'll can suggest in the Huntsville area?
Post: Thoughts on Huntsville, Alabama?
- Huntsville AL
- Posts 44
- Votes 30
Quote from @Michael S.:
Interesting. Let's explore the example you gave a little further for educational purposes.
So let's say the purchase price is indeed $252k.
20% down, 30 year fixed rate loan at 7.5%
Monthly payment would be $1,410
Property Taxes would be at least $2000/yr given that it is not homesteaded - so at least 165/month
Insurance will be around 80 to 100/month - we'll say 80/month
So we are now at 1655/month before vacancy and capital expenses.
You quote renting to a Section 8 tenant - I'd add $2400 in cap ex per year then. That's another $200/month.
Now we are at 1855/month.
One month vacancy per year. That will cost at least 2179/year without including utilities. So at least another 180/month.
Now we are at 2035/month.
You quote $2421 on Section 8 rent - that seems really high to me for Section 8 based on my research, but let's go with it anyway for this example.
10% to property mgmt - another 242/month.
So let's see what the net looks like:
2421 rent - 242 (prop mgmt) - 2035 (expenses as outlined above) = (+) 144 / month.
So, Nikki proved me wrong - you can find a positive cash flow property with 20% down assuming the rent amount of $2421.
As such, this could be a possible play for a new investor who is looking for solely hands off turnkey.
Now, that said, let's give the contrary view, and why I wouldn't personally do that deal:
-Limited appreciation potential for at least 3 years on this property based on location and demand, and no opportunity for forced appreciation
-Risk with Section 8 on cap ex
-I look for cash neutral on 15 to 20 year notes
-positive cash flow of 144/month does not excite me, especially since I prefer appreciation potential
-I avoid rentals that require more than $2000/month in rent to work given lack of demand at that price point in North Alabama
Again, I ran this example just for educational purposes. Do your own due diligence and don't take my viewpoint for your own investment strategy.
I appreciate this break down. I really only get superficial information being solely on the seller side, so this was a great insight.
I will add that when the LO and I ran the numbers it was for a client who manages their own properties here locally which surely helped. We did confirm the zip code and section 8 rent, it is correct. This is a new home and the builders in our area need to be competitive so closing costs were covered by the seller as well.
Post: Thoughts on Huntsville, Alabama?
- Huntsville AL
- Posts 44
- Votes 30
Hey Zane,
I work for a production builder. Feel free to run the numbers but last I checked a 3 bed, 2 bath new build around $252,000 will cash flow right away once rented. With 15-20% down would make the payment ~$1300 and right now section 8, the monthly rent for zip 35759 is $2421.
Post: Success with NACA
- Huntsville AL
- Posts 44
- Votes 30
Commenting to stay on the forum and hear more
Post: Investing in new markets
- Huntsville AL
- Posts 44
- Votes 30
Quote from @Hamlet J.:
Hi @Nikki Yankowski,
Thank you for your reply.
Are you an investor in Boston?
I have a rental there, 500 sqft 1 bedroom condo in Medford and I was able to get $2000/ month this past year and will try and rent it for $2150 this upcoming year.
If you're looking for a property manager who can also help you buy private message me
Post: What state should we consider buying properties now at the budget around 350k-450k?
- Huntsville AL
- Posts 44
- Votes 30
Check out Huntsville AL. Low unemployment and a lot of gov't backed relocations because of Redstone Arsenal and the FBI
Post: Investing in new markets
- Huntsville AL
- Posts 44
- Votes 30
I used to work in Boston and there's a strong rental market on cycle with the universities. Your best bet for an off market deal there would be to contact a property manager let them know what you're looking for. A lot of the time when a big landlord is looking to sell it doesn't even hit the MLS because that property manager has investors waiting.
Post: First Property in Harvest Alabama
- Huntsville AL
- Posts 44
- Votes 30
This area has two main themes, government-related jobs & family. That being said school districts are important and convenient commutes to Redstone Arsenal.
I've been selling houses for two years now and can tell you first hand these are the two most common priorities buyers have.
Post: Huntsville, AL Realtor
- Huntsville AL
- Posts 44
- Votes 30
Quote from @Paul Willis:
For a realtor in Huntsville, I would highly recommend Caroline Davis. She is active also on biggerpockets, and you can connect with her if interested. We are currently in the process of my first deal. As an out of state investor, she is a tremendous resource with 18 years of real estate experience. The new construction I purchased already has gained equity. Caroline also does property management, and is already touring potential tenants for the home, which hasn't been completed yet but is on time for completion in mid march. Feel free to connect with me if you would like a warm handoff.