All Forum Posts by: Ryan Daniels

This is the closest thing I have to a deal right now, but I don't think the numbers work. Let me know your thoughts..

General info:

Duplex, investment property, not owner occupied.  

Goals- Buy and hold, diversify income streams, set up passive income to retire early before 401k funds are usable. 

Financing: Conventional 30yr fixed at 4.75%

Purchase price: 215,000

Down Payment: 43,000

Loan Amount 172,000

Closing costs: 3,000

Total outlay: 46,000

Income:

Monthly rental income:  (700+700) = 1400

Monthly expenses (please critique my % allocations, based off BP calculator recommendations):

Mortgage: 897.23

Vacancy 5%

Prop Mgmt: 8%

Cap Ex 8%

Repairs/Maint: 8%

Water $60/month

Prop Tax: $125/month

Insurance: $77/month

Results:

Fails 1% rule (Needs 2k in rent or 140k purchase price)

Fails 50% rule

Cash Flow -$165

CoC Return -4.3%

https://www.biggerpockets.com/...

Bad deal as is, huh? 

@Dusty Wilson

Awesome! Thanks for the recommendation, I will definitely reach out to them!

@Kenny Davis

I am using First Bank.

Do either of you have a realtor that you like working with? I've spoken with a few, but keep running into issues where they aren't available to show properties or put in offers.

I work full time from the road, so I'm not in town all the time. In fact, I won't be back until November, and even then I'll be gone again in March.

Im hoping to connect with people operating in the Cookeville, TN market. I want to purchase my first rental property before the end of the year, and have already secured funding, and my DP is just sitting in savings.

I'm mostly looking for a realtor and property management connection in the area right now. Eventually I hope to have a trusted team together with a realtor, contractor, lender and prop manager. I've chosen my bank for the my first deal, and will assess continuing to do business with them after the first deal unfolds.

The end goal is to have 10 rentals within the next 5 years, all under a single property management company.

I look forward to hearing from the BP community.

Hi All,

I'm new to BP and the Real Estate world in general. My question is impossible to answer, and I know that. BUT- nonetheless, I am interested to hear others' opinions on it. With the price of real estate absolutely booming, how many of you are continuing to buy properties? Looking at some of the markets that I am familiar with (meaning places I have lived in the past 10 years - and there are several), home prices seem to be significantly higher, even when looking back only 3-4 years, well after the housing bubble recovery. 

I know that RE tends to increase in value over time. I have no problem with that. And were I an appreciation investor, I'd be happy to get in right now, and sell a few years down the line. My question though, is about rental income, and renters in general... Do we believe that those who aren't in positions to buy RE (renters) are going to be able to pay the increased rents that are required to make these high purchase price properties cash flow? If so, why? With prices of goods and services increasing, but wages stagnating, or worse, the unemployed staying home receiving COVID benefits, why do we expect these people to be able to pay increasing rents? 

I would love to hear your thoughts and opinions. Again, I know none of us have a crystal ball, and in a sense your guess is as good as mine.

Hi All,

I'm new to BP and the Real Estate world in general. My question is impossible to answer, and I know that. BUT- nonetheless, I am interested to hear others' opinions on it. With the price of real estate absolutely booming, how many of you are continuing to buy properties? Looking at some of the markets that I am familiar with (meaning places I have lived in the past 10 years - and there are several), home prices seem to be significantly higher, even when looking back only 3-4 years, well after the housing bubble recovery. 

I know that RE tends to increase in value over time. I have no problem with that. And were I an appreciation investor, I'd be happy to get in right now, and sell a few years down the line. My question though, is about rental income, and renters in general... Do we believe that those who aren't in positions to buy RE (renters) are going to be able to pay the increased rents that are required to make these high purchase price properties cash flow? If so, why? With prices of goods and services increasing, but wages stagnating, or worse, the unemployed staying home receiving COVID benefits, why do we expect these people to be able to pay increasing rents? 

I would love to hear your thoughts and opinions. Again, I know none of us have a crystal ball, and in a sense your guess is as good as mine.