All Forum Posts by: Tehseen Baweja

Thats a good thought Adam, thanks!

My analysis was obviously too short-term focused.

Thanks Justin.

The misc was actually for maintenance/repairs, I should have called that out. And I would do property management myself so didn't account for any fees for that. 

But good to know that I am not way off :)

All,

As I embark on my journey to learn about REI, I was wondering if you guys can help me analyze some numbers. I am NOT planning to go forward with any deal right now but want to analyze as many as possible to learn. How would this deal be for a Buy and Hold?

The property is listed

LP: $219,000

• Rental Value: $2,000/month (Seller claims $1,000 from unit 1 and $1,195 from unit too, but I am beign conservative)
• Tax: $375/month [$4500/12; ($4,076 estimate according to dallas county, ), I am rounding up)
• Insurance: $170 (Going with Seller's numbers for now)
• Principal+ Interest: $900 (Based on 4.5%, 30 yr and 20% down)
• Warranty: $50/month
• Vacancy: $160 (Assumed at 8%)
• Misc: $100

Cash Flow: $2,000 - $1,755 = $245

If the total investment is $46,000 (20% down + some closing costs), then Net Return is 5.3%?

Assumptions:

• Sellers numbers are accurate (I know a lot of due diligence would be required if I was actually jumping into the deal)
• No significant fixing/renovation is needed

Will appreciate any feedback!

@Wayne Brooks May be you can help me too.

Bought the house as primary in Dec 2011, lived in it through Aug 2013 then leased it out from Sep 2013 through Feb 2015. Now planning to list it in next 2 weeks.

Would I have to pay gains tax? I know technically I have not lived in it for 2 years (it was 3 months short).

I was visiting Crowley,TX and Burleson,TX this past weekend and the properties are still very cheap compared to the rest of DFW. I know there have been some crimes in the area but still thousands of folks owning and renting there. Saw some good properties to buy and hold for rental income.

Anybody has any experience with these two towns?

Anthony, I would like to attend with a friend, if not too late.