All Forum Posts by: Thomas Phu

Again thanks so much for your knowledge and insight, I will keep you updated for sure! I will start to open specific bank accounts for these rentals expenses/income. I'm glad to have heard such helpful critics/feedback on these numbers from you. To answer your question prior, after closing I will have some money left over to manage this property for the long run.

I'm looking forward to see what I can from my potential first deal, just need to get thru the entire process now! do you have any recommendations for rental management application? I heard Cozy was a good one for management and screening. Also do you have any recommendations on which bank accounts to open and use for rentals or does it not matter? any personal tips/advice on landlording you can give me? 

You are awesome, this is basically like talking to a mentor! My offer was actually just accepted today for 457k!

I do agree with you, my expectation were too low, 5% is way too low and going forward i will try to look for at least 8-10% COC return. I won't be expecting much returns on the first year since like you said and my thoughts before, I will rent out the other 2 rooms and live in one room. However, once I move out I hope to get the rents to market rates and I will be able to cashflow at least 8-10% with prop management expenses (10%) included as part of cash flow for now. The area is an okay area for appreciation, so if I were to sell it years from now it would be a good equity play.

From now on, I will include property management expenses in my calculations for sure. As of my current living situation I am not ashamed to say I still do live with my parents haha (like Thach Nguyen in the past) so I don't pay any rent there. however I do help with the bills so I am not a freeloader lol! but like you said i will try to get roommates for the 3bd side and once the lease end I will try to get at least 2100 or 2400 for the 4 beds/2bd.

so new variable expenses: 

Is this fair?

Aaron Montague Avery Heilbron You guys are definitely right, i spoke with my lender and it is a about the a owner occupant loan, so now I have to re-strategize and house hack it for a year then move to actually cash flow.

Hey Aaron,

Thanks for much for your input, i seriously appreciate it.

My goal is to buy and hold with at least 5% cash on cash return. In your opinion is that too low of an expectation? I guess I don’t really know what a good return would be. I’m trying to invest more south of Boston around the Plymouth county so prices are more affordable

After reviewing your comments, I made adjustments to my calculations! I researched deeper into trash n adjusted from $10 to $50 per town trash rate.

As for property management I calculated 10% / repairs: 5% / cap ex: 8% / vacancy: 6%

As of right now, I would not have the funds for 20% unless I borrow from my 401k plan. Also, I was planning to management the property myself to begin my investment journey but as I scale up I would definitely use PM. To cash flow at least 5% or more, I would have to get my rents to market rates. Which won’t be until the lease expires in December for unit 2.

Hello BiggerPockets community! Can you please help me analyze this deal.
Property type/description:
2 Family - unit 1: 3bd/1b + Unit 2: 4bd/2b
Market rent in area: 4beds/1bath (rare): approximately $2000-2200 / 3bd/1bath: approximately $1800-1950

Utilities are separate  

Property Condition is fair: 

1. Bathroom needs updating but still in okay condition
   
2. overall property condition is good, move in ready but needs slight touch up
   

Currently: unit 2 is being rented for $1700 (below market), as they are good long term tenants

Unit 1: is currently vacant, pervious tenants just recently moved out was renting for 1600

Asking price: $449,000

My offer price: $460,000

Dp: 15%, Conventional loan

Pmi: $90/month

Variable expenses: 25% (including water)

wont be cash flowing until I can get market rent for Unit 2:

At Market rent:

Please let me know what you think about these numbers? Do you think these calculations are realistic?

@Massachusetts @Rental Property @investment Property

Thanks for tips and advice everyone! I believe it was done by someone else def not through himself. I will talk with him and hopefully give an update

Hello everyone!

Here’s the backstory (we are from the greater Boston area):

My family and I just recently finished our first 2nd fix live and flip deal. We are currently living in the second home in a much better appreciating neighborhood. The neighbor of our new home was a older gentlemen that had two properties and was interested in putting the property on market. We were able to persuaded him into selling us the neighboring home. My sister and brother in law bought the property for their family to live in for below market value Great deal. (NOTE, they are already living 5 mins down the street in the same city but much better neighborhood than we were in)

So here’s the problem, that house technically belongs to me and my brother in law who is a mortgage broker is the grantor of the title (I’m on the title so he could use the First time homeowner advantage). They were planning to live in that house but midst renovation he’s having second thoughts about moving out of their current home and is thinking about selling after Reno. The house is gutted and has complete permits and building plans. Also, reno has been postponed and placed on standstill for a month.

Is there a way I can craft up a deal where I can buy the house from my brother in law and create a win win situation?!

My plan is buy the house from him and complete the renovation and then put it on the market. What can I do?!

@Charlie MacPherson

Hey Charlie thanks for the input and tips on what locations to look out for! I trying looking for for comps in the area and saw that it’s not worth trying to flip houses there. I feel like the profit margins are too low.

There has been a ton of development and renovation to the town of Abington, MA. I heard there is land being bought out for new development and such. I was wondering if investing in Abington be worth now and/or in the future....thoughts?