All Forum Posts by: Robert Arquilla

Do you have more info about the house you can share? How many beds/baths, square footage?

Howland is a nice area however keep in mind there seems to be a high income portion of Howland and a low income portion, middle class seems to be smaller in that area from what I’ve heard talking to agents since it boarders Warren. So schools will not be as good as say Cortland schools. Just something to keep in mind when targeting a renter. 

I’ve been looking at rentals in Trumbull county for years just haven’t pulled the trigger yet.  

@Brady Bulmanski unfortunately no the price didn’t work out for me. 

@Ryan Rex

I would say keep looking. I think some of your numbers look lower to begin with. Not a huge deal but when youre projecting negative cashflow every little bit matter.

Look on the forums for ways to find off market deals. Or invest in a different market.

@Ryan Rex

Based off your numbers I would pass. Negative cash flow. Doesn’t meet the 1% rule. If you’re not living there I think the interest rate will be higher and closing costs seem low.

Most people want at lease 100 per door in cash flow.

Just my thoughts

@Joe Prillaman

I wish I could make it. I’m from Ohio but I was in the Marines awhile ago and had a couple buddies that lived in Wilmington that I would hang out with on the weekends. How’s the rental market there? Are vacation rentals hard to come by? I’d like to, at some point, buy a vacation/rental home down there once I have a couple in Ohio.

Thanks for the insight!

@Siale Havili

You also may want to call a contractor and get some hourly rates as well as see if he can provide you with average time it takes to do certain tasks. That way say it takes an average of 2 hours to change out a window. You can find the window cost online and use his hourly rate to calculate labor costs. Or if the window is in a hard to get location or its bigger you can add time as you see fit.

@Jonathan Davis

I agree with Jacob. You could probably bump your repairs and cap ex up some. Depending on the property I normally use 7 -10%.

Also where are you getting that interest rate from? Is it from your lender or a guess? Seems like the average is low 5%.

Just some things to consider. Overall it looks good. If you haven’t already I would maybe talk to a property manager and get their opinion on the how long it takes to place a tenant in that area and for that home as well as your rent price.

@Mario Masseroli

I agree with Brian.

Create a scope so you know and the contractors know what needs done. A lot of owners I work with will walk through the site and just say they want this this and this. Then the next contractor comes in and he forgot to tell me but he tells the other contractor he wants new ceiling tiles as well. So having a scope is a good way to keep both parties on the same page of what is being bid on.

Is the 10k for repairs before you have a tenant move in? Normally you include 5-10% for repairs each month. What about big ticket items, roof, ac, furnace etc?

It doesn’t look like 7% vacancy is included in your monthly expenses.

Just things to think about. 10k will eventually run out. 

@Susana M.

What about Capex, repairs, management, vacancy?