All Forum Posts by: Paul Saechao

Thanks @Adam Tafel You've given me some confidence in reaching out to agents. I guess I've been afraid of agents not taking me seriously in the beginning since it is does require each side to bring something to the table - - the agent spends time finding deals and the investor buys those deals.

Thanks @Jonathan Greene I'll keep this in mind. I plan on investing out of state. I've done quite a bit of online research on my market and will definitely fly out there soon. Hoping to eventually make some REI friends here on BP for my targeted market.

Hi BP family,

Newbie here... In one of Brandon Turner's YouTube videos, he mentions that I should start analyzing deals every day. I've been doing so by analyzing properties off websites such as realtor.com and zillow.com. However, I've read that I can miss a lot of deals if I rely strictly on these websites and that I should utilize a real estate agent. I'm still educating myself so I don't plan on purchasing a property anytime soon. Is it too soon to reach out to an agent? Would I be wasting an agent's time by asking to be put on automatic emails for new properties that come onto the market, or is this pretty simple and painless task on the agent's end?

Thanks so much, @Nick Peters!!!

@Daniel Taylor Yea, that time being vacant seems pretty high - investors are probably afraid of the amount of work and money needed for this property.

You always hear investors talk about buying distressed homes, but I never really understood how distressed of a property makes sense for most buy & hold investors. I'd like to hear what distressed means for you.

Thanks for the reply, @Mitch Messer!

Ah, thanks for catching that dollar amount error! I was able to build out a nifty little calculator in Excel, but as you can see, it still needs improving (had some fields with decimal places, and some without).

Great point about adding in the appraisal, inspection, and other fees into the total invested cash! I'm not sure why I did not think of that!!!

I really appreciate your input. As a newbie, it's already helped me improve immensely.

Hi BP family,

I'm new to REI. Just finished Brandon Turner's Book on Rental Property Investing and wanted your help to see if I have my property analysis correct in regards to Cash Flow and CoC-ROI.

The property that I am analyzing is: 3314 W 100th St, Cleveland, OH 44111

Listing info:

-Duplex

-4 bed / 2 baths (2/1 per unit)

-3,097 square feet

-Listed on realtor.com for 449 days. Pro: Possibility to offer much lower than asking price. Con: Property could need MAJOR repairs. No inside pictures on listing.

-Unfortunately, no pictures of the inside and the listing has little information about the property. Let's just estimate a $15,000 rehab.

Purchase Info:

-Purchase price: $57,000

-Down payment (25%): $14,250

-Interest rate: 5% @ 30 years

-Closing costs: Est. $3,000

-Estimated repair costs: $15,000

Rental Info:

-Total rental income: $1,400 (This number is from Rentometer, which shows an average rent of $700/2b unit in this area)

Monthly Expenses:

-Mortgage (P&I): $229.49

-Property tax: $180 (tax rate for this zip code is 3.8%)

-Insurance: $14 (Got this estimate off realtor.com)

-Repairs/maintenance (5%): $70

-Vacancy (8%): $112

-CapEx (10%): $140

-Property Mgmt (10%): $140

-Utilities: $0 (Let's say all utilities will be paid or reimbursed by the tenants)

-Lawn care: $60 ($30 x 2 mows per month)

Final Calculations:

-Monthly expenses: $945.49

-Total invested cash: $32,250

-Monthly cash flow: $453.51

-Cash on Cash ROI: 16.87%

Did I do this right? Am I missing anything?

Thanks!

@Khang Tran Wow - that'll definitely eat up all cash flow. Thanks for the example.

Good point - I can imagine flood insurance being really expensive, especially for an investment property.

What are your thoughts of investing in rental properties in the Natomas area? I feel like Natomas might become what Elk Grove has been in the last 10-15 year, blooming like crazy. Can anyone tell me their experiences in investing here? What's the cash flow like?

Thanks for the clarification @Gordon Cuffe!