All Forum Posts by: Zack P.

@Liz Heisler That number seems slightly high depending on the exact location.  There are certain areas I feel like you can get that amount, but probably unlikely.  $600-700 is probably the range you are looking at.  

@Jay Hinrichs  Thanks for your input.  I'll double check the PM agreement, but I think it's 50% rent for each lease period.  I definitely need to add this in.  

This deal seems to be turning into zero cash flow pretty quickly.  :-(  

@Chris Clothier

I'll PM you. thanks!

@Robert Raffalo  Thanks for your input!  I'm still 50/50 on it.  I guess that's why I am asking :-) 

@Jason D. That's a really good way to Capex. I love it! I think I'll adjust my numbers a bit.

@Jason D.  everything is about 10 years old, part of the rehab budget is a new water heater.  They will need to replaced at some point, but I don't think in any hurry.  I may bump it up to 10% for capex.  

@Antoine Martel  My numbers include P&I

@Larry Fried Do you do value add when you buy?  Or buy retail or mostly rent ready?  Most of $900+ rental properties in Memphis just don't have the equity and value that I like to have.   Would you say even with 10k equity to start, that this is not a great deal?

@Antoine Martel  Yes I always get a detailed quote (parts + labor) from a contractor.

Hi BP Community!!

I finally found the right place to post this....I'm working on a deal right now in Memphis, TN and I was wanting to get some opinions on this. 

The property is in Memphis in Hickory Hill, 38115 and for buy and hold. I THINK these numbers are pretty conservative, but not sure. Here are the stats.

SFR, 3/2 + "extra room that can be used as a bedroom" 1300 sqf

Purchase: 56K

Rehab: 4k

ARV: 70k

Rent: $800 (according to PM, but I think it might be closer to $750)

Vacancy - 8%

Repair - 8%

Capex - 8%

PM - 10%

P&I - $270

Insurance - $50

Tax - $90

Cashflow - $120 ($100 if using $750/mo)

Deal or No Deal?

Hi all!  Not sure if I'm posting this on the right place, but was wanting to get few different sets of eyes on this.  

The property is in Hickory Hill, 38115 and for buy and hold.  I THINK these numbers are pretty conservative, but not sure.  Here are the stats. 

SFR, 3/2 + "extra room that can be used as a bedroom" 1300 sqf

Purchase: 56K

Rehab: 4k

ARV: 70k

Rent: $800 (according to PM, but I think it might be closer to $750)

Vacancy - 8%

Repair - 8%

Capex - 8%

PM - 10%

P&I - $270

Insurance - $50

Tax - $90

Cashflow  -  $120  ($100 if using  $750/mo)

Thoughts? 

@Alfred Litton If you want to go personal unsecured loan, you can try lightstream.  Super easy and if you have good credit they will fund within a day or so.  

BUT, since you currently have properties in LLC, I might suggest trying getting a commercial loan cash out refinance on the two houses, and pay cash for the new house (it will have to be in the same LLC as well). This will get you into new arena of real estate and you'll be able to grow the business quicker down the road.