All Forum Posts by: Libby Baugher

Hi all, I have a cashflow question for you. I just purchased my first three units recently. I did the analysis beforehand taking into account the managment fee, vacancy, capex, repairs, mortgage, etc and it still came out above my monthly cash flow requirements. I purchased these through conventional financing....one was 30 year and the other, which was a duplex, was 15 year. My question is this....when you hear someone talking about their monthly cashflow requirements...are they talking about with financing or paid with cash? For instance Brandon from Bigger Pockets always mentions in his webinars/podcasts that he is looking for 200 per sfh and then 100 per unit for multi family. I always wonder how each of his are purchased and if he changes his cash flow requirements to reflect the purchasing method.

Libby

Hi all, I have a cashflow question for you. I just purchased my first three units recently. I did the analysis beforehand taking into account the managment fee, vacancy, capex, repairs, mortgage, etc and it still came out above my monthly cash flow requirements. I purchased these through conventional financing....one was 30 year and the other, which was a duplex, was 15 year. My question is this....when you hear someone talking about their monthly cashflow requirements...are they talking about with financing or paid with cash? For instance Brandon from Bigger Pockets always mentions in his webinars/podcasts that he is looking for 200 per sfh and then 100 per unit for multi family. I always wonder how each of his are purchased and if he changes his cash flow requirements to reflect the purchasing method.

Libby

Thanks guys!

Thanks guys! Both replies help alot.

Hi all,

I'm looking at a duplex that already has tenants. I've given my offer and the owner has come back with a counteroffer of the same price but with no inspection. I've done a walkthrough of the building and although it is dirty due to the tenants (nothing like the horror pics I've seen of other landlord properties, this is just the way they live) it has had some big ticket item updates within the last couple years. The tenants want to stay and I'm not interested in doing any rehab until they are gone. It gives me great cash flow which I plan on saving for any repairs that need done that may arise within the next few years. I believe the offer is below the home value by at least 5000 dollars but am not 100% on that. 

Thoughts?

Libby

Why are 2 years lease bad? I'm a newbie and would like as much info as possible beforehand....

Does anyone know how to delete rental property reports that have been calculated using the Bigger Pockets calculator?

Libby

I will be doing my first walkthroughs of possible rental properties to purchase within the next week. I would like to know What others think are the most important items to be checking when doing the initial walkthrough? They will be single family and duplexes. Also, are there checklists available that can be used as you walk through the properties? 

Thanks in advance! I appreciate all thoughts and suggestions!

Libby

Thanks for all the replies everyone! This is great information! I'll be keeping my 15 year loan on my primary residence. Now I just need to decide on the rental properties as I'll be purchasing my first two before this year is over. 

Libby

Wow, thanks guys! That all makes so much sense! Now I’m wondering if I should change my primary mortgage from 15 year to 30 year.