All Forum Posts by: Cosette Trantow

@Todd Willhoite You’re right, I will be  occupying the property for the first year. I have been forgetting to factor that into my analysis. Thanks for the reminder. 

I appreciate the tax advice, I’m having issues finding the previous taxes on a lot of properties on the Assessor’s website so I’ll definitely give them a call for the math. 

I appreciate your help, thank you. 

@Dennis M. I’ve been having trouble finding the tax info for a lot of places on the Assessor’s website. I think I got that number from trulia. I realize it seems a bit low, so you have any suggestions of where I should be looking or how to navigate the Assessor’s website so I can actually find this info?

Thank you. 

@Matthew Jacobsen I’ve just been using Mesa properties for analysis practice for now. Only because that’s where I live so I think I know the rent in the area. When I actually purchase a property I’m not sure I’ll want to buy here. I’m going to start analyzing properties in different areas of the East Valley.  

@Michael Pearse Great advice, thank you for your time!

@Michael Pearse Great information, thank you. I appreciate the feedback on my numbers and the great tips when closing. Would you usually do those 5 things during the time you have for the inspection (assuming that I would have that as a contingency)? 

Hi everyone, I hope y'all are doing well. I tried to analyze my first property today. I'm really not sure if I did it right because it seems like a really good deal (I'm not anywhere near ready to buy yet, just learning how to analyze). I'd like some feedback from those of you who invest here in the Phoenix area so that I know how off my numbers are. I live in Mesa and I tried to find rent comparisons for the area of the property (Alhambra) but there was nothing for rent there I could find. I kind of went with the general area and near what I pay for rent here.

This property is in the Alhambra Neighborhood of Phoenix AZ.

List price: $350,000

4 units: 3 x 2 bd/1.5ba 1 X 2bd/2ba

I figured $1100/mo for rent for the 3 1.5 baths and $1150 for the 2 bath

Total Income: $4450

I used Zillow and my assessor's website for tax info (although I have no idea what FCV and LPV are)

Tax: $95

Vacancy: $230 (5%)

Repairs: $230 (5%)

CAPEX: $230 (5%)

Property management: $450 (10%)

Mortgage: $1922 (using an FHA loan at 3.5%)

PMI: $280

Insurance: $70 (based on zillows numbers)

Total Expenses $3507

Cashflow: $4450- $3507 = $943

Down payment: $14000

Closing costs: $4000 (I definitely need help with this number)

Rehab: $10,000 (pulled this out of my butt, only 1 picture of the outside)

Total cash in: $28,000

Cashflow for the year= $11316

COC ROI= 40.4%

I'd just like a little help to figure out if I'm even in the ballpark or if I really need to make some big adjustments to my numbers. Any resources that I can use to understand some of these numbers better would also be appreciated.

Thank you so much for your time and input, I have a while before I can take action on anything, but I want to be able to analyze a deal in my sleep by the time I get there and be confident that I did it correctly. 

I appreciate that @Art Shalomov, thank you. I still have a little while until I save up the down payment and educate myself yet and I’ll take all the help I can get in order to get through my first deal. 

@Debra Thomson Thank you, I really appreciate your help:)

Wow, I’m amazed at the thoughtful and informative replies. Thank you. Knowing that I can explain my bouts of unemployment makes me feel so much better. 

@Art Shalomov I will definitely look into a mortgage bank. I didn’t even know there was such a thing so thank you. 

@DeWitt Gibson I appreciate being able to see that information direct from the manual. I’m one of those people who likes to see the rules and regulations in writing. Maybe I got that from the military. 

@Michael Pearse Thank you for the great response. I’ll definitely put those questions in my list.