All Forum Posts by: Pat Smith

@Dan Barli Thanks, I appreciate the input and discussion. I will re-look some of the numbers and re-evaluate

@Dan Barli The 4% for Maintenance and Repairs and CAPEX and 8% Vacancy are rough estimates based of talking with the realtor and property management company who work and also invest in the area. The property taxes are verified.

The reason the total cost is higher than the ARV is because it accounts for the Seller paying money towards closing costs. So the net is the same and at market value. The flip would have been $3K less in purchase price and $3K higher in closing costs.

The total annualized return is negative because it is calculated as if I sold the property which yes would be for a loss if I sold it in year 1 or 2. Since it is a buy and hold property I plan to keep it longer and am more concerned with the CoC ROI and Cash flow.

Thoughts?

Hey all,

Just looking for some feedback on the numbers in the report below before making the offer on my first deal for this 4plex. Thanks in advance.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hello all,

I know that there are many of you that invest out of state for various reasons. I am curious how everyone has gone about choosing an out of state market to invest in. Especially those who started their investing path out of state. Whether it be an area you were already familiar with due to having previously lived there or have family there, or maybe a referral that led you to that out of state market. There are several potential markets to invest in and out of state investing requires research to learn about the area (if unfamiliar with it) as well as to build a solid team. But before that, you have to settle on a area. What criteria or metrics did you use to do so?

@Jonatan Barbera Thanks for the advice. I definitely agree that having a good team you feel comfortable with is vital to out of state investments.

@Jim Stallings thanks for the info. I will check out Havelock

@Bill F. Thanks for the heads up. I will definitely refine my search accordingly

@Aaron K. I have looked at the San Antonio area but I have not found anything that meets my criteria (yet). Due to initial capital constraints, the Midwest and south offer some good deals with a lower price to entry where I can get 2-3 houses purchased (goal by the end of the year) with good cash flow and ROI and then scale up in a different market such as San Antonio or the Austin area. I have not yet looked at Norfolk or Wilmington NC but I definitely will. Still on the hunt for some good deals to plant that first flag.

@Aaron K.

I agree that the type of inventory and type/age of housing is important to look at.

The focus is 3 bed SFH built within the last 20-30 years.

My focus is around military installations since I am active duty and the larger installations are not going anywhere anytime soon. Also focusing on the Midwest/South region