All Forum Posts by: Zachary Rymarcsuk

@Meghan McGill

Congrats!  Those numbers look great!  Which PM are you using?

If you're interested, check out my post about my first rental property back in October at https://www.biggerpockets.com/...

It would be interesting to compare our experiences! =)

@Steve W.

Glad you like the post!  Thanks!

My numbers are as follows:

Rent: $895

Mortgage: $345 (Includes taxes and insurance)

PM: $90 (~10%)

Maintenance & Repairs: $45 (~5%)

Vacancy: $45 (~5%)

Capex: $90 (~10%)

Cash Flow: ~$280 (Rent minus all expenses listed)

@Whitney Chavez

I'm sorry to hear that the communication has been lacking with the company you've reached out to thus far.  I had the same issue before finding my current realtor.  I will send you the information in a DM. =)

@Scott Gaspar

Thank you!  The $61k is the total purchase price, so after a 25% down payment, I've got a mortgage for about $45k.  $22k investment includes my closing costs (due diligence, appraisal, inspections, down payment, closing fees, etc. for about $17k) and rehab costs (replacing package HVAC unit, installing ceiling fans and vent hood, new door knobs and locks, touch up paint, caulk, etc.).

Please feel free to reach out if you have any other questions about the Fayetteville market and/or some connections in the area.  The Realtor and Property Manager that I work with have been great!  My Realtor actually brought another deal to me a couple of days ago and we are working on numbers now.  That property is just a couple of blocks away from this one!

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: $61,000
Cash invested: $22,000

- Brick 3/1 SFH
- 1100sqft
- Built in 1954
- Located in Fayetteville, NC

What made you interested in investing in this type of deal?

Market is great for cash flow potential

How did you find this deal and how did you negotiate it?

I was looking at 2 properties with my realtor and we happened to pass this FSBO in between the two. My realtor was proactive by calling to inquire for me, then told me to guess how much they wanted. My guess was high, but he agreed it was worth the number I guessed, so we made an offer to buy AS-IS. In between our initial walk through and the inspection, the package HVAC unit went out and the seller graciously agreed to take half of that replacement cost off the purchase price!

How did you finance this deal?

Conventional fixed-rate mortgage with 25% down

How did you add value to the deal?

- Had package HVAC unit replaced the day after closing
- Installed new ceiling fans in each bedroom
- Installed new vent fan above stove

What was the outcome?

- Completed all rehab/repair items within a week of closing
- Had tenant sign lease and move in within 2 weeks of closing
- Currently cash flowing just under $300/mo

Lessons learned? Challenges?

- Appraisers are reluctant to accept jobs in areas where there are few comps to compare to, so must either request appraisal early if in similar type of area or be prepared to pay more than normal as incentive to have appraisal completed on time
- Have separate bank account already set up when preparing to make an offer on any property, so that all financials pertaining to that property are routed through the same account from the start, making things easier come tax time

@Tyler White Great! That's next on my list. I recently finished The Book on Rental Property Investing. I highly recommend it. I haven't read a book more than once since childhood, but fully intend to do so with that one! I'm currently reading Rich Dad Poor Dad. Some said it was more of a read to get you in the mindset for investing, so it wasn't necessary for me to read after having already gotten started, but I am so glad I started it! So many tid bits and mindset challenging ideas presented! Have you defined your "Why"? Brandon Turner emphasized that again during tonight's webinar.

@Garrett Schmidt My thought on this would be to use such properties as STR, if they are in a decent area where people could "get away" to relax and have some sights to see. I don't have experience with this yet, but have a couple places in mind for the future, being that I know a handful of people who like to get away from the hustle and bustle once in a while.

Which book are you currently reading?  There are a lot of good ones out there and I believe the most important part of reading them is opening your mind to new ways of thinking and determining what type of investor you will be.  Have you head of S.M.A.R.T. goals?  I, as many others would, recommend starting with laying those out.

@Joe LeGolvan

The Charlotte and/or Raleigh-Durham, NC areas are great to invest in!  People are flocking to those areas, they're seeing a good deal of appreciation, and multiple sites have placed them in the Top 5 for a variety of "accolades", as seen in the following links.

https://www.menshealth.com/health/a34919033/happiest-cities-in-america/

https://www.quickenloans.com/learn/best-cities-for-real-estate-investment

https://www.realwealthnetwork.com/learn/best-places-to-buy-rental-property/

https://www.glassdoor.com/List/Best-Cities-for-Jobs-LST_KQ0,20.htm

@Vince Espiritu I do not believe that you can assign an exact dollar amount to how much you should have in reserves. That amount should depend on the size, type, age, and condition of the property you are going to purchase, as you should also factor monthly savings for both Capex and repairs/maintenance based on those same factors. While you should most certainly have something in reserves when starting, don't let the fear of not having enough hold you back from getting started. While you are saving up to the point that you will be comfortable with, one of the most important things to do is evaluate potential investments and run calculations on as many as possible. The more you do that, the more accurate your numbers will be and the more confidence you will have in your numbers. Hope this helps! =)