All Forum Posts by: Thomas Mason

Glad you could join the community! Are you investing in the Plano, Prosper, Frisco, area right now? 

@Ryan Swift Welcome to BP!  

Howdy @Marcus Ramsey ! 

Welcome to BP! This Bigger Pockets is a great place to start with networking and educating yourself. If you haven't already started i would go through the BP Podcasts. They have been an excellent source of information and it stays entertaining with Josh and @Brandon Turner

Thomas

Brandon, 

Welcome to the Bigger Pockets community! The Podcasts are great Ive made it though most of them and they were the inspiration to join BP as well. Congratulations on your first deal!  

Do they operate in Fort worth or West of fort worth?

Great thanks, 

Bumping to a 30 year and rolling the closing into the mortgage and having a more realistic 5% for closing costs the CoC jumps another 5%.

A 30 year loan would improve the CoC a good bit I believe to 15%, what would be a goal that i should look at for a CoC return. I haven't set up a good set of guidelines for what my investment metrics should be or better yet Hurdle rates for what my deals should look like. with the 30 year the CoC increases dramatically, I didn't figure in any inflation appreciation since I don't have the background or insight to see what dollar values, inflation, markets, etc. will look like that far into the future, and markets don't always go up imo.

What are fairly decent metrics a ballpark figure on IRR and CoC for deals that would be realistic, not what a Guru would put in a book or a seminar?

Howdy, 

Being new I have a lot to learn but i want to walk through an exercise to analyze a deal that with my numbers do have a very good return but being human I'm sure i will make mistakes.

Property - 2/1 single family house for 50k requiring about 5k in repairs (Definitely paint and there is no fridge and some of the floor is badly stained) that received a new roof in July 2014. There is a similar house next door that sold for 60k 2 months ago. The area isn't the best (c) but since i live in the area the going rent is between 700-900$ for similar 2/1 houses. Annual tax was 576 for the last 4 years.

Inputs 

Purchase price - 50,000 (loan with 20% down for 15 years @ 5%)  

Repairs - 5000 

Closing - 5000 

Monthly rent - 700-900

50% rule expenses - 350-450

Loan Expense - 316$

700$ rent the number I feel comfortable with being conservative i have 700 in income 350 in expense and 316.32 in loan payment with a positive cash flow of 33 For my first deal I'm looking for positive cash flow. But I'm not sure what other metrics i should look at for this being a good or bad deal.

900$ rent the number i feel least comfortable with the cash flow is 133$ which is 4 times the cash flow for about a 30% increase in rent price. 

Any assistance to help me look at this deal a little better would be appreciated I'm going to run it trough the calculator on BP but again I'm not sure what would make this a good or bad deal when i look at the report. 

Thanks, 

Thomas 

@Melissa Reid

Welcome to BP. I'm new to REI and have been searching for books to read. So far I would suggest reading the rich dad series of books starting with Rich Dad Poor Dad, then Cashflow Quadrant, then Increasing financial IQ. I read those 3 books over the holidays. They are fairly quick reads and will get you into the investing mindset. I also read the Complete Guide to Investing in Rental Properties that had a lot of information but I wouldn't say was at a beginner level. The Ultimate beginners guide from BP is really informative and I'm working my way through the Podcast currently and it is a great asset as well.

Hope this helps 

Thomas 

@Mike Richter

Welcome to the Site!