All Forum Posts by: Rajiv Patel

@Nathan Piercy this is what I came up with based on your numbers:

Cap Rate = 5.41%

GRM = 7.12

Monthly Cash Flow = $225.94

Cash on Cash Return = 3.92%

Assumptions made: 20% down w/30 year term, 1% loan origination fee

Your final numbers look a little low, especially your cash on cash return (assuming 20% down). Would you be able to and/or consider charging back the tenants for the water/sewer and garbage? 

https://www.vertex42.com/ExcelTemplates/rental-cas...

The above is a link to a downloadable sheet for rental properties. I've found this pretty helpful as a starting point. I would definitely tailor the worksheet for your own calculations; for example, I added a "capex" percentage to the sheet as part of  expenses I want to account for. Hope this helps!

I've been to a few local meetups, but this meetup sounds like exactly what I've been looking for. Thanks Gordon for setting this up. Looking forward to meeting all of you! 

Hello BP! My name is Rajiv Patel and while I’ve been on BP for a few months doing my HW, this is my first stab at posting on BP. Jumping into real estate as a new investor, my immediate goal is to focus on cash flow with buy & hold properties while I learn by doing with my first investment. In the near term, I would like to acquire a few rentals to build up my semi-passive income while I’m working full time (Financial Analyst)…long term goal is to work on my terms!

Ok let's cut to the chase: With me being new to Houston (moved out from LA), I've been spending some time learning the market area by scouring the MLS, going to a few local real estate meetups, and simply driving around getting a feel for local neighborhoods. I'm definitely a numbers guys and have spent many hours analyzing potential deals and developing the type of numbers I would want from a rental property. My target: Cash-on-Cash Return = 12-15%, Cash Flow = $400/month, Cap Rate = 7-8%. Currently I am looking at 1-4-unit residential properties and open to small 5+ unit commercial properties.

I really need help in two areas:

• 1) Finding a Real Estate Broker/Agent
• 2) Financing options – big banks vs community banks, portfolio lending, low money down

I will greatly appreciate any advice to steer me in the right direction.

Last thing: Folks in Houston, is there a “BP Meet up” in the Houston area? I know many cities have them, just haven’t noticed any here in Houston.