All Forum Posts by: Scott Garvin

@Skip Dell

What do you mean getting a mortgage so low?  Are there usually minimums on them?

@Bart H.

I would love to invest locally, but the prices here are through the roof!  That is why @Kaydn Jensen guessed I was looking at a mobile home. I am looking in the midwest where there seem to be better chances of getting a better ROI.

@Bart H.

I am only now starting to investigate PM's.  I will have to get one as I am looking out of state.  I didn't realize the cost they charge for filling a vacancy.  I question why that isn't a line item in the calculations that I have seen people use.  Good stuff to know though, so thanks for the reply

@Eric Adobo - 

I thought a SFH was less risky than multiple units too. But, I know nothing. The all or nothing of the rent makes sense though. I have enough funds to cover vacancy, so I am not too worried.

As far as it being in the hood...  it is not, but I didn't want to include that factor since I just wanted to know about my numbers.  I know there are a lot of other factors in purchasing a house that I didn't want to focus on with this thread. 

Thanks for your reply!!

@James Call 

 Yes... some of my numbers are rough estimates.  I have no idea about the insurance or closing costs.

Thanks for that info on PM's...  I have only heard 8-12%.  I will look into them a little deeper for a better understanding.  Thanks!

I appreciate the feedback!

@Michael Lee - Thanks for your response!

   I am not certain about the property tax.  I got the number off Zillow and not the county website.  I will go back and verify it there.

   Why do ask who will manage this for $75 a month.  I would get a property manager.  Is there a problem with this calculation?

Why is buying a single rental unit very risky? I would like to buy more using BRRR, but don't know if 25 right away is reasonable to assume. My income from my job should allow me to make payments on it if I do not have enough saved up from the rent. I know that is not what I want to do, but I think it mitigates some of the risk if that is what you were alluding to.

   Not sure if it needs flood insurance.  Good point.  I will look at that.  Thanks.

    I'm looking for a buy and hold, so I'm not interested in offering a lease option.  I suppose I could go that route if I am having a ridiculous time renting it.  

   I LOVE your suggestion about providing all maintenance up to $250.00.  It does seem a little high though.  I would think that $100 is reasonable.  Thoughts?

Thank you for you feedback!

@Josiah Kay -

1) I read somewhere that closing costs are typically 3-4K, so I use 4K to be safe.  What figure should I use?

2) I did wrap the closing costs into the loan. I was looking at doing a zero out of pocket transaction. Was not looking at ROI... was just looking at income. I will update my numbers and look at ROI with and without the down payment. That was a good point as it is something I should look at. Thanks.

3)  I did not call around for insurance quotes.  I just threw in a number that I figured was a little high.  Another good point.  I will do that also.  Thanks again.

4)  I got the figure off of Zillow.  I know I should get the actual figure from the county website.  Do you know if the tax figures on Zillow are accurate?

5)  Tenant will pay everything

6) I will add that in.

Thank you so much for your feedback!

Hi everyone... I'm a newbie that is getting his feet wet analyzing properties. I found one on the MLS and ran number against it and wanted to know if I am doing it correctly or if anyone has pointers,

Here is the rundown:

Sales Price - 37,000

25% Down Payment (from a HELOC) - 9,250

Remainder - 27,750

Closing Costs - 4,000

Mortgage - 31,750

Income:

Rent - 750

Payments:

Mortgage & HELOC (@6%) - 293.78

Tax - 75

Insurance - 100

Repairs (5%) - 37.50

Vacancy(7%) - 52,50

Property Mgmt(10%) - 75

Total - 633.78

Cash Flow - 116.22

I want to pay off my HELOC as quick as possible, so that should up the cash flow to 219.64

Please provide some feedback

Thanks in advance for your help!

Per Mindy Jensen's post...

Not screening properly - How do you screen properly?

Not running numbers correctly - What numbers?  House price, rent, expenses?

Not evicting in time - What is the appropriate time for an eviction?

I first want to preface this with the fact that I am an absolute newbie still gathering information for my first purchase.  This was a great thread for me.  When I first saw your numbers, I thought this was a slam dunk.  The numbers fit what I am looking for.  But alas, there are more to these deals than just the numbers and location.  This was a huge eye opener for me as I would never have thought of the age of a septic system as a variable.  Thank you for sharing.  I feel it helped me a lot.