All Forum Posts by: Account Closed

At least in Austin, redfin will give you when a property sold, and for how much.

That's much closer to getting comps than trulia or zillow.

It's not in the client's best interest to provide sold data (since they already sold the property, they should not care). But it's in the agent's best interest NOT to provide the sold data, because then non-realtors will have a hard time doing their own comps.

@Bryan Rodriguez

I'm curious how you came up with your numbers for your 4-plex.

You must have some creative financing to get your ROI to be so high (not have to put 25% down). And with such a low cap rate.

Congrats

Brandon

Regarding the original topic:

I found (at least for the insurance company I use here in Texas), that my insurance provider will not issue a policy unless the tenants have at least a 6 month lease. No month-to-month allowed. This was for a multi-family property.

So if I wanted to use this company, I would have to have at least a 6mo lease for all tenants.

Jeff Clawson, that's exactly what I was thinking, you beat me too it!

I'm pretty conservative, by nature. So once I saw this place (off paper) it didn't feel right...

The deal looked better if it wasn't in a bad neighborhood. Then I would have thought about lowering the vacancy estimate and maintenance/repairs estimate.

If I dropped those to 8.3% vacancy (1 month) and 10% maintenance/repairs, with only one estimated re-lease a year, that would put the cash flow at $396.
That is almost meeting the 50% rule.

But this is a bad neighborhood, so I would need to have more conservative estimates. And since I'm not expecting appreciation, that makes the case to pass even more.

Thanks for the insight, everyone.

What kind of estimates do you use for maintenance, vacancies, etc? I guess it all depends on location....

And looking for $100/door seems like the standard a lot of people use (or at least quote).

Thanks,
Brandon

John A

I'm a newbie myself. I was looking at your numbers and I could not figure out how you got a mortgage of $581.40 from a APR of 5.446. Is this a 30 year fixed?

Because I'm showing that with a 30 year fixed, your mortgage would be $424/mo. This would give you a significantly larger cash flow of $4292/yr.
A cash on cash return of 14%. Pretty good.

Of course, any rehab you may need will eat into your ROI.

Brandon

Price: $220K
Rents: $2650/mo

Typo before.

Thanks,
Brandon

Brendan J.

Current rents: $2600/mo
Financing: 5.25% 30 year fixed, 25% down.

I'm a little surprised that there were so few responses to these questions.

I'm guessing it's either:
1) I don't want to share my gem that I found
2) I don't really like my guy/gal that much to recommend them
3) "Ah, who needs an attorney?"

This is an old thread, but the only one that I saw specific to my question.

I'm also looking for recommendations for a good real estate and investments CPA.

Bryan Hancock, it's been a year since you posted this. Are you still happy with your recommendation or do you have any others?

Thanks!