All Forum Posts by: Travis Washington

@Larry Fried

Indeed, the property is in Indy. Do you have experience there? And what is your best method of calculating CAPEX?

@Curt Davis 

I plan on keeping it for long term.  The area it is in is actually building up so appreciation should see a pretty promising increase over the next few years.  Only neg on the properties in this specific area is age.  Most were build pre-to-early 1900s.  THis one in particular was build in 1908.

And yes, the deal is really good.  That's way I said I don't want to insult the seller….but $46K would be my dream price to secure the property.

Greetings my fellow BP colleagues,

I currently have a place that I am interested in that is listed at $52K and is turnkey (recently renovated) with rent going for $800. At that asking price and rent the CAP rate is 18%. However, one of my criteria that I seek to achieve is 20% CAP which would put an offer price from me at $46K. Additional note, I am an out of state investor. Now, I know the individual seller the property and do not want to disrespect him or have him feel disrespected with my offer. However, I do want to ensure I have the best deal. Another note is the seller is also an investor and is currently trying to sell is 30+ properties he owns and move into retirement and a few other projects in HI.

Now you all, as experienced investor, would all advice to push the $46K offer?…Or possibly offer lower or closer to the asking price?

Key Notes:

Asking Price: $52K
-Turnkey
Rent: $800/month
Loan Info
-15% down (i.e. $6.9K if price is $46K, $7.8K at $52K)
-30 years fixed @ 5% 

. I am actually a new investor and am fighting this battle right now. I currently have a place that I am interested in that is listed at $52K and is turnkey (recently renovated) with rent going for $800. At that asking price and rent the CAP rate is 18%. However, one of my criteria that I seek to achieve is 20% CAP which would put an offer price from me at $46K. Additional note, I am an out of state investor. Now, I know the individual seller the property and do not want to disrespect him or have him feel disrespected with my offer. However, I do want to ensure I have the best deal. Another note is the seller is also an investor and is currently trying to sell is 30+ properties he owns and move into retirement and a few other projects in HI.

Now you all, as experienced investor, would all advice to push the $46K offer?…Or possibly offer lower or closer to the asking price?

Thanks

PS- I apologize if this is the wrong forum for this question.

That is a very nifty spreadsheet. Where might I find that at? Or would you happen to have that on digits and could share?

I'm currently in the same boat as you with a SFH. Really eager to see the responses.

Alexander A. How long have you had your properties? Does your BH perform best out of all of them?

Considering two properties in Bates-Hendricks (Iowa St) and Irvington (Butler Ave). Pretty much have a decision made already in my head but just wanted to see the feedback from some other viewpoints. Both properties are pretty much identical. •3/1s •Roughly 1,500 square feet •Both Turnkey •Both 2-car garages •Both in low 50Ks and estimated rental value of $775-800 Only differences: •BH home was built in 1890; Irvington property 1923 •Irvington prop has a 1,000+ square foot unfinished basement; BH prop has a typical basement of 300sf •Irvington prop is being sold as-is; BH prop open to inspection corrections. Which one would twinkle your eye was an investor of Indy?

Hello BP!

So, what is your Cash Flow number you like to see after applying the 50% rule (and subtracting mortgage payments) to motivate you to move forward or lock down a deal?

IE: a place renting at $800 with a mortgage payment of $200.
$800*.5=$400 (50% Rule)
$400-$200=$200 (Cash Flow after 50% Rule and Mortgage payment)

**correction**

Monthly payment at 20% down is $340 (NOT $320)

All those numbers and rates are straight from my lender. I've already been approved for the loan(s). 

@Corey Demuth