All Forum Posts by: Phil Bottfeld

Thanks Andrew for the feedback! This forum is a great place to find like-minded people. We are actually in the process of flipping a condo in the same development, we have found that seniors enjoy the community and the amenities so on a prospective basis we are doing just that, rehabbing the community while simultaneously generating quick capital.

I purchased my first home when I turned 25, and was able to save enough money to purchase my first investment property at age 28. I purchased the condo for $88,000 and after rehabbing the property, I was able to get it rented out within six weeks at $1,250/month.

Here are my annual numbers

Rent- $15,000

Insurance - $600

HOA - $5200

Taxes - $2,000

Maintenance - $400

Annual NOI - $6,800 resulting in a yield of 6.5%, as I am in the property for $105,000.

While the property did not generate the cashflow I expected, (mostly due to my rental rate being wrong in underwriting, and I spent $5,000 more than I expected in rehab, the property is now worth $130,000. Essentially I can flip the property and make $15,000 after closing costs considered today. Not a homerun for most flippers, but I bought this for the intention of cashflow and this property has done well.

Thanks for reading,

Phil

Hi Colin,

Welcome to BP. This website is a great place to bounce ideas and get perspective on anything related to real estate investing. Chances are that if you have a question on something else, you probably get that answered too.

Best of Luck,

Phil

Jesus,

Just for your information, the tax records are not always a great indicator of value. Like the posters above, I'd recommend a CMA from a realtor that operates in your area. Zillow, trulia, realtor.com are all good websites to get a ballpark of your value as well.

Jamal, I'm posting in response to the reply below. I agree to use a 30 year fixed loan. While I agree that it's vital to cash-flow, from a metrics standpoint, you will actually perform worse on a cash on cash and IRR perspective using a 15 year versus a 30 year. On this specific deal, you're returns regardless of which term you choose, will be higher if you use a 30 year. There's a lot more detail and I am happy to go further into it to explain but you've definitely got the right idea going with the 30 yr.

Thanks Ron, I was figuring to get a 30yr loan vs 15yr for a higher cash flow, however, 15yr looks just as promising as I am looking cash flow. My exit strategy is to lease to own the home for $40-$50k in about 3-5years.