All Forum Posts by: Supreet Singh Sachdeva

I just moved to San Diego a couple of months ago and am looking to buy a house for rental property. I am a first time home buyer and there are a couple of questions i have. It would be great if someone who is experienced in San Diego market can help me out. Here is the list of questions.

1) Which bank would be best to approach for a first time home buyer mortgage?

2) Should i talk to a real estate agent or directly talk to buyers who have listed their houses on websites like Redfin?

3) Would it be possible to buy a rental property in San Diego within $200k ?

Thanks,

Supreet

@Mark Updegraff Here is the cashflow analysis that i got form the agent.

Price- 23500

Potential Rental Income-7800

Real Estate Taxes-1294

Property Insurance-305

Water-142

Vacancy and credit losses-390

Cash flow before tax-5669

Tax liability(savings) at 36% - 2041

Cash flow before tax-3628

According to the agent, it has a 5+ year tenant lease and the roof is 2 months old. What are the other expenses that i should be inquiring about? I know i should be visiting the property and getting my own numbers but does it look like a good buy from these numbers?

Thanks

Hi Everyone,

Looks like a great community to learn real estate stuff. I am very new to REI and have a lot to learn. Planning to buy first rental in Rochester. Any advice/sources would be great.

Thanks

@Brandon: Thanks for the reply. Is there any good online source to know about these things like demographic changes and check if homes are owner occupied?

Thanks

I graduated from RIT 3 months ago and am planning to buy my first rental property in Clifford Ave. I still need to check the demographics and neighborhood in that area? Any advice or suggestion about the neighborhood would be really helpful.

Thanks

@Wayne: I agree with you. I should probably ask for more details. BTW the vacancy and repair cost was mentioned as $390.

@Brandon: So do you think its a good buy after taxes?

The spreadsheet says as follows:

Cashflow before taxes-5669

Tax Liability (Savings)-2041

Cash flow after taxes-3628

So i have to pay this amount of $2041 in taxes every year right? Is that what it means?

I am a first time house buyer. 3 of us just made a LLC and are planning to buy our first rental property. I contacted an agent about a property and got a cashflow analysis worksheet from him. So, the property is for 23k with a cap rate of 25%. Here are the expenses given in the worksheet.

Real Estate Taxes-1294

Water-142

Insurance-305

The net cashflow mentioned before taxes is $6059. Looks good till this point. Then there's a term 'Tax Liability(savings) at 36%' which is $2041 and brings down the cashflow to $3628. What does this term exactly mean? Does this look like a good buy? What are the other expenses that i should be considering here?

Thanks