All Forum Posts by: Tim Herman

@Jennifer OsborneHave you gone to any of the meetups in the area, usually some wholesalers some syndicators and other trade people who looking for business. Limb-harrisburg and Lebanon County Real Estate Hackers group have speakers talking at each meetup. Public groups but they want to know how many to expect at the meetings. Visiting my daughter in Annville and have gone to several meetings. Good info and you can network. Too bad for me as I live in North Dakota but I will try some of the ideas I received back there.

You already answered your question, How can you estimate the cost site unseen. You have to go out and look at properties. If you see one you like make another appointment to see it and take along a contractor or handyman. Get fix up estimate and then make an offer.

@Savannah Lewison I don't see  costs for electricity gas sewer or water. Older buildings usually only have one meter. Also looks like it has a yard and sidewalks. Lawn mowing  and shoveling snow. Good luck.

@Account Closed once you own the property you send the tenants a notice of rent increase. The notice depends on the tenant laws in your area usually 30 days before end of the lease. 

@Melissa Dinas Where are the taxes and insurance. Simple interest @4% for a year is $2400 so 18 months 3600. You need to figure 18 months of payments @834. If you rehab you shouldn't have a big capex or maintenance. If you get a lease option why would you have a vacancy factor. Simpler for me to do. Selling price- loan balances= net to seller. Income-outgo=net then add the two together and that will equal your 18 month profit. Looks like a good no money down property. 

@Savannah Lewison It looks like you are using owner occupied financing. Are you moving to Pittsburg, otherwise you have to put 20-25% down. If you are buying through a realtor they can do a comparative analysis of the property. Small multifamily are priced similar to SFH of the same square footage. https://www.reikit.com/ offers a free ARV tool so you can do your own analysis. Good luck.

@Keith Hackett If your goal is to lower your monthly payments here is a duplex in your area https://www.zillow.com/homes/for_sale/Clarksville-TN/apartment_duplex_type/41856164_zpid/10843_rid/36.642253,-87.064591,36.364075,-87.640687_rect/10_zm/ Live in the top and rent the bottom out for $800 a month. Almost make your payment through rent. 

@Keith Hackett your exit strategies are to rent or sell in 3 years. If you sell it will cost you around 9 to 10%. You will owe around $118000 on the $124000 property if you only make regular payments. Property values will have to grow at least 3% to break even. Rents are similar for both properties according to Zillow around $900 which would be only slightly more than your payment. Cash out your pocket each month. I would like at some 1-4 units that would cash flow after your 3 years. 

@Account ClosedWhen google says before taxes that is income tax either in your entity or personal, so taxes are a business expense and reduce cash flow. All other business expenses have to deducted from gross income. You can look at the tool section of the website and it will list some common items to deduct from gross income to get a net income(cash flow). I think you can use the calculator 5 times before you have to upgrade to pro. 

Capex is low $435 a year. If you have to replace a roof you will have to have other reserves to pay for it. Vacancy is low I use 10%. Water and sewer seems low also but I don't your area. Usually it is 20 to 25% down not 5% on investment property. Rerun with new numbers and see if it still cask flows.