All Forum Posts by: Roman McIntosh

I looked inside the house. It is small, clean and in good shape although a little dated, Carpet needs to be pulled tight, appliances are new. Tile, cabinets and counters are in good shape but dated. I would think that would need to be updated for a flip but wan't in the plans for a rental. 

 One think I am having a hard time is understanding is cash flow. All the expense calculations are based on a percentage of rent. The only variable is the mortgage and a $10k swing in either direction doesn't seem to move the numbers much. So what are expectations of cash flow per month in the Houston area?  

@Ralph R. I got a quote for insurances (higher than my estimate) Taxes numbers a real. No HOA and the tenet pays water, sewer and garbage. With doing the property management and the real cost of insurance this is a loser at $1300 per month. I am estimating the rent, the range for the area $1200-$1675 but very few SFH for rent for me to make a good comparison. $1450 is what rent needs for $132 cash flow. Not sure if that is reasonable or not.

Thanks to everyone that responded. I'm still very new at analyzing deals. I shared the calculator if anyone would like to tell me what other errors I've made.

https://www.biggerpockets.com/calculators/shared/1...

@Christopher Phillips

I hear what you are saying. I'll offer a lower price if more repairs are needed. My question is more if the numbers make sense and if I should consider it a good deal. I will reanalyze it when I have more information

Rent $1,300 

Vacancy $65.00 (5%)

Repairs $130.00 (10%)

CapEx $130.00 (10%)

Insurance $100.00 (8%)

Management $26.00 (2%)

P&I $504.61 (39%)

Property Taxes $208.33 (16%)

Total $1,163.95 (90%)

The owner of the house across from my in-laws passed and his sons are going to put it on the market.We contacted the realtor and got a 10 option before it hit the MLS. From what we understand it just needs some paint before we could rent it out. Obviously we have to get inside and see what the true condition is. We plan to use private money to acquire and refinance after 6 months. The house is Highlands TX in a good neighborhood. I used the BRRRR calculator and can provide more info if needed.

If everything checks out and my numbers are correct is this a good deal?

Purchase price $100,000

Repairs $5,000

AVR $135,000

Monthly cash flow $103

ROI 12.74%

2% rule 1.22

@Karl Warren PM incoming. 

I sure don't but would interested to know if you find one, I've been though a couple and haven't been impressed.

I dropped by Saturday and the tenant was there and surprised to see me. I believe my suspicion of subletting was wrong. The tenant is a sub contractor (plumber) and work has been slow is the reason for the late rent and he has no plans to buy a house soon. The inside was dirty but not damaged, however their where multiple lease violations (disabled smoke detectors, dogs and smoking). I got on to him about the outside of the house and parking in the yard because my immediate concern is not getting fined by HOA. I wanted to talk it over with my wife if we should evict him or try and rehabilitate him. What we decided to do is send him notice of the lease violations and the need to correct them or be evicted. We can charge for a pet deposit and reinspect in two weeks. My mother-in will do weekly drive by to see the outside as she lives close. He does pay rent (Higher now because it is month to month) and late fees. He is not a tenant we want long term but we would like time to build up a reserve before we have to turn the property again. We are going to need to repaint at the very least and potentially do some foundation work. Sorry it so long for the update. Thanks everyone for the advise.