All Forum Posts by: Rob Winter

Hi folks, sorry I am tied up with some family stuff and can't make it. I plan on making it next time and can invite another investor/house flipper.

I'm interested, @Bogdan Constantin Stefanide. I may not be able to get there until 8:00 or so.

Hi Patrick. Based on the pro forma it seems like a good deal. The cash on cash return is about 23%, but the expenses are sure to be higher than $9,311 / year. What about sewer, garbage, Mgmt, etc. and there's sure to be some repairs.

Any chance to get the rents in 3 of those 3 BRs up to $950 to match the 4th one?

Best of luck!

Rob

Hi Karl, there was a BP Blog post about this topic yesterday:  

https://www.biggerpockets.com/renewsblog/raise-the...

Maybe it can help you?

Hi Jahan, I sent you a Message/Colleague request with the contact info.

Hi Jahan. I'll check with my brother who does flips in the area and get back to you. His contractor should have a good mason to recommend.

I've never really thought about that. I suppose it's to take a 'point in time' snapshot of your investment to see how much your return is now and ongoing compared to when you purchased it. When you say another 10%, are you talking about repairs/upgrades, etc? I think those would be considered part of operating expenses. If you are putting 10% extra directly towards the loan, then sure you could count that.

Also, I forgot that in your original calculations you should include other upfront lender costs, e.g. closing costs, points, etc.

Hi Sam,

The cash on cash return is calculated as Cash Flow /  Cash used to purchase e.g. Down payment. So assuming you put down 20% - $74K (.20 x $370K). Your Cash on cash return would be about 13%.  $9600/$74000 = 12.97%.

Hope this helps

-Rob

Newbie here. Some really good information in this thread. I like @Mark Avery's method of putting the onus on the prospective tenant to submit their own background and credit checks. It sounds like that would weed out the less serious or desirable candidates if they're hesitant.