All Forum Posts by: Preston Quinn

@Will C.

I always thought the 1% rule was based off of what you have invested into the property also. I will say this, in my market, that doesn't cash flow. If it's based off of ARV it makes more sense and the properties would typically cash flow based on the rule. Again this is just a quick metric to decide if you will analyze any further. Not saying you should invest this way.

@Javier D.

We just built a house last year and been in for a year. That depleted a lot of our liquid cash. I could def use the cash as surplus to ensure that nothing gets hairy at my 9-5. With that being said, a 30-40k surplus isn’t really helping my future imho. But, if I sold I could use that money to buy 1-2cheaper homes that cash flow much better. Got some thinking to do.

Going to talk to the wife and make a decision. I’ll let you guys know what we decided. Thanks to everyone that responded. Means a lot to me. I’ll post some pictures of it in a few days. Got a few things to finish up.

@Cassi Justiz

Obviously I’d love to see $400/month from this thing. But my market just doesn’t give it to me on this property. I need to sit down and figure out what I want out of this and then it’ll be clear to me. Then I won’t have to ask opinions. Lol.

Thanks for responding!!

@Lynn M.

This was my original thought. Apparently in my market the brrrr strategy is going to be a little tougher to pull off and still make decent returns.

Thanks for responding.

@Jaysen Medhurst

A local reputable property management company gave me the 7% figure since the property is in a prime location. Forest va to be exact on location. I see what you’re saying about the capex. Makes a lot of sense. Repairs I just went with what I see a lot of people using. I have nothing to measure that on.

I have a few friends that live in Roanoke. One owns a decent masonry business and the other flips and buys and holds. He does very well also.

Right now I don’t have any rental property. But at some point I need to start holding on to them.

Thank you for responding. Your point of view helps me understand ROI isn't the only metric I should be using.

@Jaysen Medhurst

Roe is def low. Which expenses seem low to you?

Hey guys,

Here is my dilemma, I bought this house for $100k. I’ve spent right around $30k in it. My realtor is telling me to list for $189,900. Good profit. That was my goal.

But, the more that I listen to podcasts and think about my future, I want to start keeping some of these properties. I’m considering renting this thing out and refinancing to get my money back. Here’s the catch.

Average rent (from 2 different local property management companies) is $1200-1250 per month.

If I refinance out at 130k (assuming it’ll appraise at 180ish) this is what I come up with.

Piti $800ish a month

Vacancy $120/month

Management 7% $87.50/month

Repairs 5% $60/month

Capex 2%. $25/month (low because it's completely renovated)

Water $50/month (backcharge tenant for this)

Leaves me with roughly $100/month cash flow. With very little left in the deal, basically closing costs left in.

What would you do?

@Matthew Powell

Are you holding this in your personal or in a LLC or INC?

Ok, the rental talk is awesome. But I HAVE to see the lambo. 

Congrats bro!!!  

@Keith Hackett

My realtor gets me to sign a contract on every house we offer on. I’ve signed 4 in the last 3 weeks. All of which have been rejected. If your realtor is on your team, then it shouldn’t be an issue. I completely trust my realtor. She has made me more money than I have made her. That’s for sure.