All Forum Posts by: Rax Gupta

@Shawn Phillips well yes. I think I agree with that otherwise you have to pay all those expenses out of pocket.

Thank you all. I did go back and learned a few terminologies and also did the math over the

https://www.biggerpockets.com/...

if the proposed cash flow is $300, after deducting property tax, renovations, vacancy % I am looking at $130, which is a 10% ROI with 30 years loan.

To make $1000 a month, I have to buy 10 properties, which is not bad but if you are leaving in California, $1000 doesn't even pay half of your rent. But it is still OK if the appreciation of the property is good.  

Does anyone knows the appreciation rate in the Memphis area? Is it easy to sell there? 

Thank you all for your reply. I think I have to do more math to understand how am I going to make money out of it. 

@CJ M. I meant cash on cash return %. Will it make more sense to buy it all cash?

@CJ M. Sorry what do you mean by coach on cash return. I am totally newbie I don’t know how to calculate that.

If I deduct $150 out of $171, I am just looking at $21 😶

@Tim Herman thanks for detail explanation so how much you suggest I should keep aside for reserves. If I am looking at $50 cash flow then I don’t think it’s a good deal. All I am doing is paying.

@CJ M. Of course 20% down payment so around 13k

@CJ M. Thanks Cj, Thanks for pointing that out. 2-3k closing cost.

@Tim Herman thanks Tim for response. Can’t you deduct the repairs from the income tax?

Thanks, Joseph and Patrick. I am researching Memphis Market. The way I have understood this market is, there will be less appreciation over time but its a good rental market. Since there is no appreciation, I would be interested in having good cash flow. 

Let's take an example

Price: $68,200

Rent: $685

Total Monthly Payment: $415 (Principal and Interest: 271, Taxes: 45, Est. Insurance: $30.00)

Property Tax: 543 ($46 per month)

Misc: 50 (I like to keep aside some amount per month for renovations and all)

Adding house to umbrella insurance: $29 per year ($3)

Cal Taxes: I don’t know yet

Cash Flow: $171 ($2052 a year)

Looking at these numbers does $171 looks good or should I be expecting more?