All Forum Posts by: Graham Armstrong

my niche is becoming mobile homes and through my readings and teaching this sounds like some sound advice, thanks

OK great thanks for the help.
Out of all of your expenses, how much of a % do taxes normally take up for you?

One thing that has got me stirred up, is how to figure out how much taxes will cost, and where do I go to figure out this number ???
My Niche is buy & Hold Multi families in rural areas, no city buildings. 2 - 4 units.
Please let me know what method you use to figure out what your annual taxes will cost you, in order to do a proper property analysis.

@Brent Coombs Can you show me how you got 6%??
im not quite sure how you got that

@Brent Coombs  could you do a double check this last one for me man make sure I'm 100%
Thanks!

$199,900 / Rents $2000 / Mort $712
7.5 % Cap
8.6 % CoC ( using a 20% down payment )

Really appreciate your help

Oh alright thanks for your input @Aaron Mikottis I will keep that in considersation!

@Shawn Flynn to my understanding, and how I define A, B, and C properties is as follows: (keeping in mind this is just a general rule of thumb... like alot things that seem to be in real estate! I only mentioned that it was a B property because I wanted to clarify it was not a complete disaster area / and not a brand new top of the line home)
A ) -Newer construction or recently remodeled
- Top amenities
- High-income / status tenants
- low vacancy rates
- more luxury life style
- very little or no deferred maintenance issues

B) - Older properties / Not recently remodeled
-  Few or no added amenities
- middle class tenants
- decent condition  (nothing to write home about tho)
- Value add investment opportunity
- some deferred maintenance issues, but generally well maintained

C) - Older properties or desperately in need of remodeling
-  needs infostructure improvements
- lower income tenants
- less desirable location


Once again this is just my take on it, everyone has different opinion, and im sure mine will change over time.  Also , a lot of this isn't perfect , for example you can have a beautiful old home in an up and coming neighborhood that really needs something fixed in its foundation, but after you've  done that, its absolutely perfect.... you cant really just 'classify' that with an A B or C rating. Its only a rough idea to help explain or qualify

anyone jump in on this if you think something different

@Brent Coombs  I was under the impression that  $4,680 was called the annual Cash Flow, is that correct??
so your saying basically everything else was on point, however I need to be using the actual return , instead of annual Gross ($10,200)

Ok great thanks so much man appreciate it

@Zach Quick it is B area definitely not A or C.
when you got started, how did you go about finding stats on vacancies?

Ok great!

@Zach quick

So it's fair to say, now that I have the begginer formulas down, I can start to dive deeper and see what that that 50% would actually be

What normally is your expense %% ???