All Forum Posts by: Tanner Morrill

@MATT FISH I'm very new, but so far the Utah Market seems tough to crack. The condos I was looking at for around $110k on the MLS would need to sell for half that to cash flow, based on my estimated rent and expenses. Nothing in the metro area generally goes for less than $200k, with SOME townhomes and condos the exception. I need to find some birddogs. =)

Now I know where multi-family units are somewhat affordable... I'd say stick with #1 and get an attorney involved (if you haven't already) to see if there isn't some way to split the lot of land, but I'm a newbie. 

So I (a newbie) checked out today a condo listed on the MLS (#1321480) and I want to see if I'm analyzing this correctly. Here are basics:

List price (assumed purchase price): $114,900 with 20%down on conventional loan at 5% and minimum monthly payments of $493.45.

Gross max rent (estimated): $1000/mo or $12000/yr with 5% vacancy rate. 

Operating Expenses:

HOA fee: $1080/yr

Taxes: $609

Insurance (guess): $600/yr

Maintenance: $1500/yr

Property management (educated guess): $960/yr

TOTAL OP. EXPENSES: $4,749/YR

RRA: $200/yr and debt service at $5921.36

NET OP. EXPENSES: $6651

BTCF: $529.64

CAP: 5.79% (pretty bad!)

COCR: 1.96% (pathetic)

Debt/coverage ratio: 1.12

50% rule: ($221.36)

1% rule: ($149) 

IRR: 43.7% (pretty good, right?)

To get good cap & COCR rates above 10% I need to buy this place for $60k, right? Did I miss anything? Do your numbers agree with mine? Thanks!!!

I'm new too. Study hard and let's talk in a couple months. I'm working hard to free up some cash and learn AMAP this year. 

A banker told me the other day that if the LLC is 2 or fewer years old, your personal credit will be very important.