All Forum Posts by: Quinn Murphy

Thomas S. Thomas, thanks for the advice. It prompted me to read an article regarding cash flow vs. equity. What are your thoughts on having equity as a safety net for devaluation? So that way you never find yourself under? My thinking is, as house values plummet, more renters seek to buy and the value of rent goes down and/or less people available to rent thus reducing your cash flow and also inability to get out by selling without a loss. When I get into it, I'm thinking a ration or 60loan/40 equity would be a good cushion to have cash flow but also protect your self in case of deflation.

Got it! Thanks @Mitch Messer. Exactly the kind of advice I needed.

@Mitch Messer

Thank you for the reply. I see your point on #1. That is a factor that I have failed to consider until now. As far as the value, I should have updated those in the report. I think its actually worth 130-135K but he has it listed at $149k. The 125k is the price I would HAVE to pay in order to be able cover 25% down plus closing costs without hard money. 

As for point #2-I have county assessment tax data in place plus an overestimate on insurance. However, current tenants are paying a total of 1600 (just found out yesterday) but they have been in place for about 4 and 3 years respectively so that cuts into my bottom line initially. However, the vacancy rate in my area is 8.92% (don't know how reliable that info can truly be), but a 2 bed/1 bath in my area with a garage space would easily rent for that price. 

My question for you is, if it's currently occupied, you would still factor in repair costs to be performed right off the bat? I guess it makes sense just in case something comes up, but I guess I was thinking any problems found during inspection could be addressed in the negotiations.  

Hey guys,

I'm new to the real estate thing but have been reading up and analyzing properties to the point of exhaustion! Anyway, I have one that I think I like (very few meet the criteria it seems) and I was hoping some of you guys can look at the numbers and expense percentages and see if I'm way off the ball or not. Any insight would be appreciated!

https://www.biggerpockets.com/calculators/shared/804435/f1481755-6fbc-4583-a5c4-c2ac1dcd482e

Thanks