All Forum Posts by: Tony Karns

Thanks guys for all the advice. I will not pursue this deal.

So the goal was to get the place down to 400K. renovate the rental side for about 15-20K. Rent it out between 1600- 2000/month.  With my total expenses being 2830/month , I will only need to cover 800 for the side that I was planing to live in. This allows me to save 1200/month. I planned to a use the 50% rule and put that away for raining days. Do you guys still think that the deal is bad if it comes in at 400K?

Month to month lease. Current market rents are 1600 to 2000/month so this one is currently under. this home does need to be updated in order to reach that amount. Tamar I thought all properties under a management company has at least financial if not a proforma . How else would the show that the property is making anything?

Correction the duplex is going for 450K not 500k sorry.

It's in the Dallas, Richardson Market. I am not sure completely what type of repairs are needed yet. I also plan on living in one part and renting the other unit out. The rent in the area is at the higher end (1800) so I would need to do some renovations in order to capture those numbers. I wonder if with the repairs and the ability to raise the price on the unit would it be a better deal.

Nick at the current asking price yea it is definitely a negative cash flow situation

I am looking at a deal in Texas that is valued at approximately 500k. Its a duplex, currently leased at 1300/month. I have reached out to the listing agent only to be told that there does not appear to be any Financials or Proforma. What should I do? Should I walk away.  Realtor says seller is motivated.

Jordan, like I mention to Ken, the number are just what the seller has made available with the listing

Guys I a new investor and I am attempting to analyze this deal and see if it is worth my time. Looking for advice and insight.

1- 3BD/3BA

4- 2BD/1BA

325000

Pro Forma Income Statement

Rent Collections: $45,000

Vacancy & Bad Debt: -4,500

Effective Gross Income: $40,500

Operating Expenses:

Insurance- $3,000

Property Tax- $5,743

Maintenance/Repairs- $4,447

Pest Control- $250

Lawn Care- $1,285

Management Fee (8%)- $3,240

Legal and Accounting- $500

Net Operating Income: $22,035

I ran it through Brandon's Rental Spreadsheet and it looks good but would like to get some other eyes on it

I have not really thought of that. I guess that biggest concern is understanding who are the right people to have around. If the other REI is an equal investor I would understand the half part otherwise, if they are partnering to learn some stuff then I would not agree to that deal at all.

Thanks Stephanie