All Forum Posts by: Stephen Collins

@James Park would you invest in Charlotte or Atlanta? Lets say for a buy and hold SFH.

@Sharad M. I am very flexible with where I invest. I serve in the Armed Forces and expect to be moved around the country. I picked "hot markets" according to Forbes and found a connection to #3 Charlotte, NC and #4 Nashville, TN. I have been working with a realtor and this was one of the "better" investment properties she had in those areas. I am not so convinced. If you had free reign of the country what market would you invest in?

@Matt Schelberg The house was built in 2002. I agree a roof will last for about 20 years. 20(average)-12(time already spent) leaves me about 8-10 years before I plan on spending the $5,000 for the roof.

Property taxes, along with insurance, and mortgage were totaled into "monthly housing expense" and subtracted from the monthly operating income leaving me with monthly cash flow.

• List Price $85,000
• Target Purchase Price $80,000
• Cash P/I reserves need by bank, and closing costs $6,000
• Renovations $10,000
• TOTAL CASH OUTLAY $32,000

• CAP Rate 8.22%
• Cash Flow + Equity + Appreciation (3%) = $648 + $2133+ $2400 = $5180
• Total ROI = 5180/ 32000 = 16.2%

@Sharad M. @Jerry W.

I am sorry for the inconvenience. I appreciate your help!

http://youtu.be/sEJN6z---tE

Can you please take a look at my number crunching and see if mathematically I made any mistakes when trying to determine CAP, COC, and Total ROI? This was a great read and really helped me out! I know these valuations are more for multiunit buildings, I was trying to create a system of comparing "apples to apples" if I look elsewhere.

http://www.biggerpockets.com/renewsblog/2010/06/30/introduction-to-real-estate-analysis-investing/

I am being very conservative for my expenses and I know it shows, but is this deal too tight? The house is in a great market and if I can get it a little under list price, add in all the renovations I should still be about 20K undervalued, next to all the comparables in the neighborhood.