All Forum Posts by: Account Closed

Thanks for all the great feedback guys. Quick Question:

When you walk through a property during your first go around, do you generally bring your gen. contractor with you?

Thanks Bram! I'm going bump up the Vacancy, Repairs, and Capex. I would plan on managing the property myself, keep the costs down and reinvest that 10% in the within the beginning years. With the 5% downpayment and increased expenses, it looks like the investment would still bring in about $1,022 in cash flow every month.

Wow. So amazing man, incredible. That's a real 'Life Hack' story, I wish you even more success!

Deal or Dud?

I've been working on my analyzation skills when it comes to finding deals and seeing if the math makes sense after looking at the numbers for Buy and Hold properties.

I found a property in Petersburg, Va that seems that it could make for a good house hack; The seller is offering a 4 unit (2bd 1br each) Multi-Family for 175k. I wanted to add that it's 7 minutes from a college campus.

http://www.loopnet.com/Listing/20257249/630-634-Ha...

So I crunched the numbers solely based off of the math and the pictures that I observed. so here is the mathematical breakdown that I've come up with: with 5% down fha loan, and the other scenario is with a 30% down payment as a conventional loan (Both accounting for a 10k out of pocket rehab budget).

I received my comp rental value from the average of Trulia and Rentometer. For the Fha loan, I accounted for PMI. For the both loans I set an interest rate of 4.5%.

Pre-Conclusion: Based on the COCROI, it seems like a deal based on both situations. These numbers would give property a 16-17% cap rate and that's including 5% vacancy, 5%CapEx, and 5% for repairs.

what do yall think, Deal or Dud?

I checked the 2 bedroom rental prices within a 1.35 mile radius and the average is $818 per month. Your right, more research would have to be done. Thanks Thomas!

I'm still within the research and development stage of the Buy&Hold business but I've come across a a listing within the near town of Petersburg, VA. It has just hit the market at $175 for a 4 unit multi-family that's already fully occupied. The owner is claiming a current cap rate of 13% with an NOI of $22,750 per year. Now I'm not sure if the owner included capital expenditures and vacancy expenses, but overall it looks like something worth looking at. From the pictures, the property looks like it's in decent condition, but a good pro-inspection should let you know if there are any major hidden problems.

Here's the link to the loop net

http://www.loopnet.com/Listing/20257249/630-634-Ha...

I love crunching numbers and finding deals as practice for now, and this seemed like a possible great opportunity from the outside looking in. I'm just looking to tighten up on my process of analyzing deals

#DudorDeal 

Welcome!