All Forum Posts by: Parag D.

If you have $150K cash and want to buy real estate investment property, which would be a good option? Need is for a steady cash flow, and a reasonably good cash on cash return (10%-12%). Would condo or SFH be an option or are there better ways to invest this money in real estate properties?

@Nick B.- thanks that helps!

@Greg Scott - thanks that helps!

I am trying to figure out what should drive my next real estate investment decision - do I give more importance to cash flow or Cap Rate? Below are the numbers of my first real estate investment. Looking back, should I have done this deal?

Bought brand new single family house in a new subdivision - 2400 sq ft, $350,000 price

Added a concrete pad/patio in backyard for $2500, radon gas mitigation system for $1500 - total improvements $4000

Rented out for two years, $2425 per month rent.

Operating expenses includes property tax, property insurance, HOA, 3% of rent as vacancy rate, 3% of rent as maintenance reserve, interest on mortgage.

monthly cashflow year 1: $2200

monthly cashflow year 2: $1700 (as property tax of $500 assessed after year 1)

Cash on Cash returns:

year 1: $21.29%

year 2: $13.15%

Cap Rate:

year 1: 7.55%

year 2: 5.7%

I read that average cap rate should be between 8% and 10% for a reasonably good deal. Looking back, would this have been a good deal?

Thanks

Parag

I have a rental SFH and my current renter isn't taking good care of the lawn and landscaping. There are weeds all over and lawn isn't watered properly. I am trying to figure out the best way to get this sorted - do I keep following up and ask the renter to take better care of lawn or hire a lawn maintenance company and charge the renter the fee to take care of the lawn or do landlords pay the cost of lawn maintenance?

Thanks in advance!

I am looking at a couple of single family home investment properties in my area and wanted to know how old is too old as a rental property? The houses are built in 1990-1995 range. Some have improvements made like changed roof etc. These houses net around $300 cash flow per month.

If there are any rule of thumb or things I should consider before investing in these older houses.

Thanks in advance.

Parag

I recently bought a SFH in a brand new subdivision from a builder in Mason, Ohio. My renter did a radon test and found it to be of higher than normal level (7.1). Can I go back to the builder and ask them to pay for the radon mitigation system?

Thanks

Parag

Hi -

I am a passive investor in RE and currently have one SFH on rental. I want to add another SFH investment this year. As I work fulltime in my day job, I do not get opportunities to actively network and learn about other locations/cities to invest. I am looking for online sites that can provide city/county data focused on RE investment. I came across online site like Neighborhood Scout (www.neighborhoodscout.com) though their monthly subscription of $80 per month looks pricey. Are there other (more affordable) sites that I can use to find out about market trends, city data etc.? How do most folks do online research on surrounding cities to find rental/market data?

Thanks in advance.

Parag

Hi -

I am a passive investor in RE and currently have one SFH on rental. I want to add another SFH investment this year. As I work fulltime in my day job, I do not get opportunities to actively network and learn about other locations/cities to invest. I am looking for online sites that can provide city/county data focused on RE investment. I came across online site like Neighborhood Scout (www.neighborhoodscout.com) though their monthly subscription of $80 per month looks pricey. Are there other (more affordable) sites that I can use to find out about market trends, city data etc.?  How do most folks do online research on surrounding cities to find rental/market data?

Thanks in advance.

Parag

@Arlan - good point, Though my RE agent is also a close friend and a RE investor too. There might be better ways to finance, hence my question in this forum.