All Forum Posts by: Richard Burke

Sorry but I don't think stock speculators are moving in droves into RE.

The stock market is doing very well, no reason to leave.

TBH I think that flippers and RE investors are driving the RE market to insane levels.

I think i'm missing something in the REI mindset/ path...

If your first duplex is 500k how do you then get another property? Do you just keep counting your pennies until you have another 20% saved (10-15 years later...)

Generically speaking, duplexes are about 500k, cap rates are 8% (according to the "always honest" listing agents)

Do you sell your soul to get a ''no money down'' loan on another property?

Can I leverage my leveraged property? (isn't that how the stock market crashed in '07?)

Can anyone elaborate?

Is this where people start getting creative with financing?

I house hack a condo currently.

Personally I think that price vs comps is less relevant than price vs income for these small multi-family properties.

Nearly all of the properties I look at do not meet the 1% rule,  this one exceeds it. 

I would be putting 20% down and have over 6 months of mortgage payments available. 

I didn't see any work that needed to be done in either unit 

Taxes / insurance are built into the PITI

Taxes - 2469/yr

Insurance - 1980/yr 

No HOA.

Are they that bad? 

jeeeeeez

These are the best that ive been able to find :-O

Duplex

Asking 169k

#1 - 3/1 - $1050/mo

#2- 2/1 $800/mo

Income = 22,200/yr

....

Expenses: (Tenants split water bill)

PITI: 1003/mo = 12036/yr

Repairs 185/mo = 2220/yr

Vacancy 185/mo = 2220/yr

Lawn 85/mo =    1020/yr

Optional - PM 185/mo = 2220/yr

Total expenses 1643/mo = 19716/yr (this includes the PM fee and lawn service)

Cash flow = 207/month  = 2484/year

w/o PM = 392/month = 4704

If I wanted to really cut costs I would self manage and do the lawn.

Thoughts?

A book about ''buying your first home''

*Trollface*

I feel lucky that when I terminated my lease early I only forfeited my security deposit.

I did however, pay my rent until October 1st and moved out september 20th so they could do work and show the unit easily.

My LL had a new tenant in by Oct 15th.

Send any correspondence to their last address (your property). Most people fwd their mail ;)

I second the ''just move on''.

The time you spend running to court could be spent getting the unit ready for the next tenant -- who will likely pay you ;)

This is also a good lesson to understand why its best to "Get as much deposit as you can'' IE- first, last and one month security.