All Forum Posts by: Scott Rogers

Sounds like a great topic.  Wish it were a little closer to me :)

Yeah, something doesn't add up.  

- The upkeep budget seems high at 25% (PM, Prevent, Cap Ex)

- Insurance and Taxes are based on a $100,000 home but rent is in line with a $60,000 - $70,000 home. If you rehab the house to a value of $100,000 then it needs to rent for $1100+ to cash flow imho

Scott

Welcome to the site @Bryan Edwards.  I would recommend attending the local WiscoREIA in Appleton. I have met a lot of really cool people there that are always willing to help.  You have your "Why" figured out so just put together a plan of action and start.  Feel free to reach out if you need any help.

Scott Rogers

https://www.wiscoreia.com/

Welcome to BP @Morgan I Levy

I am relatively new to REI and BP but find this community very helpful. I would agree with @Marcus Auerbach that a house hack would be the ideal starting point for you.  Lower cost of financing and lower risk.  

Scott Rogers

Neenah, WI

@Mason Crossland  Those are great numbers... Awesome job !!

@Ned Carey, thanks.  More of a question than a statement.  I think it's a dilemma that most new investors face.  Do I want the older homes that have great cash flow/higher maintenance/$400-$600 renters or the newer ones that have just ok cash flow/lower maintenance/$800-$1000 renters.   

Hello BP,

I am about to close on my first rental property and thinking about what I want my portfolio to look like. The first rental was an older (1920) duplex in ok condition and it should cash flow around $300 (with very conservative vacancy and upkeep budgets).  For my second property I have been looking at nicer, newer side by side duplexes that are basically cash flow neutral using the same parameters. 

It's very enticing to have nicer properties that should have fewer maintenance issues , attract better tenants and possibly appreciate faster. However if you are in the cash flow game the older properties will generally have better returns.  

Of course the other option is to wait for a great deal on a nicer property that needs some rehab but those deals are not very common these days.

thoughts?

Scott

I would agree that you are on the hook for the money per your lease agreement. I really good microwave should only be around $200 so I think you are covering more than half though. 

@Tj Hines  Maybe SE Fresno but I wouldn't touch it.  I believe the OP is looking to invest out of state. There are a few in my area (WI). 

I would suggest either Turnkey investing or building a team in an area you are interested in (per the book by David Greene).