All Forum Posts by: Tiffany L.

How do you go about finding "off" market deals? I'm struggling with this too. 

Hey @Nicholas L.! Yes, that’s the initial goal to try to purchase one investment to get started and to have something close to where I live. I’m not quite comfortable with out of state investing. I also can’t seem to find deals in my area less than $200K unless it’s in an area where there’s a lot of crime (but I would like to avoid that). I do plan to self manage and do not plan to hire a property manager. I don’t believe having the cash tied up will impact things I would want to do in the very near future. I am also sharing this risk with my siblings. Also, the $1800 rent is based on actual rented comps. We learned that the property was already renting at $1800 without the renovations and upgraded appliances. Thank you for taking the time to reply to a newbie like me!

hi all - I made a mistake. The purchase price would be $285K and not $295K. 

@Sarah Stamper: That is helpful to know about the 1% rule. 
@Ash Fields: The goal is for the home to appreciate and to have some cash flow income. We are not planning to flip. 
@Amy H. : the floors were newly renovated and based on initial viewing of the home, it's in pretty good condition 

Hello! Can someone help evaluate a deal for me? 

• Purchase Price: $295K 
• Improvements: $10K in bathroom reno 
• Closing Costs: $5K
• Down payment: 20%
• Interest Rate: 2.75%
• 1 unit and renting at $1800
• Vacancy Rate: maybe 5%
• Property Taxes: $1,992 annually 
• Insurance: $888 annually

I'm also new and I'm not very familiar with the 50% rule. Can someone help explain this? Based on one calculator I used, I am seeing 8.21% cash on cash return. Is this good enough?