All Forum Posts by: Steven O'Hare

Originally posted by @Ricky Quach:

@Steven O'Hare thank you! Have you purchased your first property yet?

 Currently no, but I am learning and being patient, working towards that goal. 

@Ricky Quach Welcome on in, I have been studying and looking in California for a while and no real cash on cash returns here that I am seeing, as I am learning. Although I have looking at Texas myself , Dan Antonio specifically as it is a growing city for sure. California has lots of renter friendly laws vs landlord friendly if it is rentals you are looking to do like myself. Good luck in your pursuits. I have learned so much on Bigger Pockets calculators that it has stopped me several times from jumping in deals that I was told was a cash flowing deal but in essence was not. Analyze a few properties a week Or a day to jut get used to the information you need to put in. It helps so much. Best of luck and welcome in.

Wow great insights all I really thank you all .  I will check into these things.  Like others I find it hard finding deals but I am remaining vigilant .  

I can appreciate that that insight.  I wasnt seeing  giver pockets calculator showing that as mortgage goes down my value of the property helps my returns grow year over year, it down on the graph but not the way my realtor was pointing out which makes sense as well.  I have analyzed about 75 properties and since this was a new build and It appears that it will have cash flow it was the best I have seen so far returns ( well...using his figures anyway and not what I am seeing using my figures). 

Consider this property being a new build Duplex in San Antonio , ten year warranty so no real huge cost for repairs in the first ten years so to equal numbers out I am keeping cost zero for simplicity sake , I will have reserves saving up ultimately but trying to keep it close to what my realtor is using on his numbers.

So I am trying to understand how my real estate agent comes up with vastly different returns then the calculator does...looking for advice on what I am missing,  

He shows 14.65% return which he calls “ Return on initial investment year one” 

...cash flow before tax= 4258 roughly 5.18%

+ appreciation at a conservative 1,5% appreciation $4572 yields 5.56% 

+ Pricipal reduction on loan $3223 a 3.92% gain 

= totalling 14.65% Gain.

Vastly different than this calculation I did on bigger pockets 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Really appreciate the help!