All Forum Posts by: Robert Hernandez

@Jason Parker Your income is $3800/month, mine is closer to $2,800. So not that close. But your deal sounds great. My expense might be a little low, considering the condition and the complex is like 50 years old.

@Bjorik Mutize the 600 income I calculated with mortgage payment which for me is around 1400. But if you mean like the 50% rule I don't meet it, which I was concern.                                                                                                                                So let me know if this looks right.

Income - Expense - Morgage payment = Cashflow

$2940 - $1323 (45% of income) - $1400 = $241.

Is this more closer to my cash flow?

@David Abbate that is including my rent. I added it onto there.

I am looking to purchase my first home via FHA, its a quadplex that will cashflow $600 month after all expenses and 5% Capex, 5% repair, 10% Property management, and 5% vacancy.

The home is in a C class neighborhood, not the best there are some section 8. But, relatively quit, not the worst place.

Now purchase price is $221,000 (with closing) and Rent Profit is $2940 and all expenses are $2340. So it doesn't meet the 50% rule. What benchmarks do yall use?

My agent is the buyer and seller agent which i'm nervous of since i don't know if there is a conflict of interest. From my inspection all 4 Hvac are 11 years old so they need to be replaced soon. I tried to use that to negotiate the price down but they didn't budge. They said they will pay my home warranty, which is only 500. And I heard HW don't do much good.

Grace period is over. And we are coming to the inspection agreement. They agreed to fix some messed up wood, mold, windows, etc.

However, I am considering walking away from this deal and not sign the inspection agreement. Am I just getting cold feet?

From the numbers how does this deal sound?

Dear BP,

I am looking to purchase my first home via FHA, its a quadplex that will cashflow $600 month after all expenses and 5% Capex, 5% repair, 10% Property management, and 5% vacancy.

The home is in a C class neighborhood, not the best there are some section 8. But, relatively quit, not the worst place. 

Now purchase price is $221,000 (with closing) and Rent Profit is $2940 and all expenses are $2340. So it doesn't meet the 50% rule. What benchmarks do yall use?                                             

My agent is the buyer and seller agent which i'm nervous of since i don't know if there is a conflict of interest. From my inspection all 4 Hvac are 11 years old so they need to be replaced soon. I tried to use that to negotiate the price down but they didn't budge. They said they will pay my home warranty, which is only 500. And I heard HW don't do much good.

Grace period is over. And we are coming to the inspection agreement. They agreed to fix some messed up wood, mold, windows, etc. 

However, I am considering walking away from this deal and not sign the inspection agreement. Am I just getting cold feet?

From the numbers how does this deal sound?