Jonathan Small
50% Rule vs DSCR > which do you use to calculate a good rental
15 January 2025 | 4 replies
However, they approach financial health from different angles.The 50% Rule is a quick estimate that suggests operating expenses (excluding mortgage principal and interest) will roughly equal 50% of the property's gross income.The DSCR is a more precise calculation (Net Operating Income / Total Debt Service) that determines if a property generates enough income to cover its debt obligations.Deal example:- Class C middle class neighborhood- 4bd / 2ba single family house- ARV: 190k- Purchase: 105k- Rehab: 35k- Market rent: $1,400-1,525- Section 8: $1,475- Property manager: 10%- Taxes: 125 month- Insurance $1250 yr- HOA: $55 month- purchased and rehabbed with all cash.
Tre DeBraga
FHA 203K Loan
22 January 2025 | 4 replies
One thing to be aware of is the FHA multifamily self-sufficiency calculation which determines if a property can generate enough rental income to cover its mortgage payments.
Jeremy Beland
The Crazy Title Issue That Almost Ruined Our Deal – But We Got Creative!
13 January 2025 | 0 replies
In New Hampshire, title laws are strict, so we couldn’t move forward without obtaining a signature from a living heir.The title company dug deep and eventually located a distant relative—a niece of the deceased owner, two generations removed.
Joel Oh
Anyone owns OMG category?
13 January 2025 | 12 replies
I am sure there aren't many comps that this would generate.
Joel Oh
salt water hot tub
13 January 2025 | 23 replies
They just generate chlorine at a constant rate depending on the system setting.
Matt Williams
sell or hold duplex?
20 January 2025 | 4 replies
Tyler local, so sparked my interest whenever I see anyone post about the area.Given that your duplex is fully paid off and generating a steady cash flow of $1400 per month, it's understandable that you're having second thoughts about selling it.
Ify (Bobby) Anizoba
Starting 2025 Strong
11 January 2025 | 2 replies
I'm passionate about teaching real estate in underserved communities and helping others build wealth through knowledge.Looking Ahead: I’m seeking local and out of state investors, lenders, and professionals in the Atlanta area for STRs and MTRs, and in Birmingham, Phoenix, Columbus, Macon, and Augusta, GA for long-term rentals and small multifamily deals.Let’s connect if you share my vision for creating real estate that not only generates wealth but also builds lasting, positive change.
Kody Smith
Transition from SFR to Multi Family 10-20 units
6 January 2025 | 17 replies
One fast way to generate cash flow is to invest in high cash flow, low appreciation markets (say several midwest e.g.
Dustin Horner
Hiring FT or PT
6 January 2025 | 5 replies
You need a lot of units under management to pay a maintenance tech 40 hours per week.When determining when to hire a PM or ops team member, that greatly depends on how much revenue your units generate.
Ven Bud
Rookie question on negative cashflow investment
13 January 2025 | 7 replies
When you invest in 1-4 units residential property in the Bay Area, you are investing for the appreciation or value-add potential because most properties don't generate positive cashflow.