All Forum Posts by: William S.

Hi All,

I currently have $5,000 in reserves for any unexpected cap-ex/repair items that may come up. This is for a newly rehabbed property. Calculating the cap-ex internal rate of return I'm getting $125/m for a hold of 30 years. Since I have $5,000 upfront, I was thinking of taking the $125/m and investing it to get a better return instead of putting it in the bank. 

Does anyone invest their monthly cap-ex reserves into dividend stocks, bonds, etc?

I'm looking for my cap-ex reserve to grow. Any ideas?

@Brendan M.

I heavily considered Milwaukee since I'm local. I decided to look elsewhere. Ridiculous property taxes, city inspectors, expensive union workers, etc. Too much big government/regulation for me, not business owner friendly. 

Hi All,

I hope you're ready for some serious, what could be "analysis paralysis." Before I begin my purchases I wanted to set out my plan to make sure I'm not making a mistake. I don't want to get burned by CapEx items. On the forums there have been debates on using percentages of rent to calculate for expense vs using IRR off the monthly cash flow. I'm attempting to combine both methods.

See attached image

Strategy:

Year 1-3

Purchase three turn key SFH's with 25% down 30-year fixed mortgages

Have $25,000 of reserves to survive any major CapEX items that may come up

Set aside each month 30% for vacancy, repairs, PM off of the gross rent

Year 4-10

Use cash flow from all three SFH's + savings to pay down mortgage on property #1 and so on...

Have what may be left of my $25,000 reserves

Set aside each month 30% for vacancy, repairs, PM off of the gross rent

Year 10 and on...

Have what may be left (if any) of my $25,000 reserves

Use cash flow from properties to set aside for CapEx items (using IRR)

Does this seem like a good strategy? Is anyone else taking this approach? Have I missed something?

Thanks!

Bill

Ninety-Fifth, German Immersion, Christ King Parish, School of Languages, St. Margaret Mary...

Does anyone have information on these schools? Would getting rentals near these schools be a good strategy/sought after? 

Thanks

53222 is tricky. Hard to gauge what the rent prices are. Watch out for high taxes in this zip code. I saw a few houses I was interested in but property taxes killed it.

I ended up not moving forward because it was too far from my office and didn't have the feel I was looking for. There were some okay older homes, but I prefer being close to Tosa.

Hi All,

I'm looking to purchase three B-class SFH rental properties over the next five years in Kansas City (ready to purchase one now). I have found one turnkey company in the area that I like so far. Can anyone recommend any TK companies in KC? They need to have everything in house (pm, contractors, etc). I'm wanting to keep all of my business under one roof and establish a long lasting business relationship. These properties are to be holds and passed down to the next generation. Looking for quality properties not quantity.

Note: I used to live in KC so I am familiar with the area.

Thanks!

thanks!

@Marty Johnston

It seems that JM contracts only do major items such as HVAC according to their website. I'm looking for contracts who do kitchen, bath remodels with durable rental materials. Specifically a contract who I can send photos who can provide a ballpark figure of the cost.

@Dawn Anastasi

3. In the below tax bill image are you referring to "specials" and/or "less credits." What would be the investors tax amount in this example? Thanks!