All Forum Posts by: Pontus P.

Hi Adrian!

Welcome to BP! I can see you've done your homework, and from what I can see the math is correct. Have you compared the rents against other apartments in the area?

If it's a good deal or not is up to what you consider a good deal to be. If the property is in a good condition and there won't be any unforeseen repairs or additional costs down the line, it won't loose you money. Don't know if you would agree with me, personally I try to find properties that return over 10% cash on cash just to have a margin of safety.

If the seller is motivated you might try to push the price down further?

Best of luck to you!

Great spread sheet! It's very similar to mine, I just broke it up year by year over 30 years. Thanks for sharing, looks like I am doing things right!

Hi Guys,

Thank you for replying! I am originally from Sweden, but I've been living in Spain for a few years, so everything is a bit new for me as well. The tax system is very complicated and, things that the government would do for you in for example Sweden, you will have to do yourself here. And with this crisis, the rules are changing every year. From the 1st of January this year, you can no longer deduct tax from the mortgage interest rate.

Doug > Month 1 includes the yearly expenses.

I definitely have to study the tax system before I do anything. I still plan to educate myself for another 6 months until I am confident enough about my analysis.

I am also looking into getting a 4-5 unit apartment building, which I think would be a better investment.

Thank you both for your input. I am very grateful for all the helpful people on this site!

Hi all,

I am looking for my first rental property, and I have created a spreadsheet to work all the numbers out. I will buy in Spain so all numbers are in Euro and the spreadsheet is containing all Spanish circumstances.

Please have a look:
https://docs.google.com/spreadsheet/ccc?key=0AsuwTI58q7nWdEp4ZFNQQ1dWd2czUlFpTWRqMzU0QlE

Now. I am looking for a 3br/2ba apartment in a prime location. After analysing the market, the average rent for similar apartments are 700-900 in the area. The average prices are 80,000 - 140,000. The monthly communal fees are around 10-40/month. Water and electricity will be paid by the tenant.

So to make a profit without margins I can only afford to pay 60,000 if I have a rent of 800. And this is not including rehab expenses.

Am I calculating everything correct? Is there anything else that I have forgotten about?

Would be grateful for another pair on eyes on this.

Thanks Henri!

Thank you Joshua! It's all about taking action! ;)

Hi James! Thank you! The prices has dropped in my area with over 35%(!) since 2007, and they are still falling (17% the last year). From Jan 1st there are new tax laws which will make the prices drop even more, so I believe my timing is pretty much as good as it can get.

Thanks Bill! Nope, I am buying in Spain. Even though a lot is different here compared to the US, I learn a lot from reading everything here on BP. Then I have to tweak all information to fit how things are working here. Maybe some day I'll jump over the pond. :)

Greetings from Spain! The last 6 months I've been reading everything I could get my hands on about REI. I stumbled over BP and now I think I am home! I spent three whole days reading this forum and blog posts non stop.

Previously I have been investing all my savings in dividend stocks. I will continue with that but at the same time build capital to buy my first property sometime around this fall.

Thank you BP for a great website!