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27 February 2021 | 1 reply
This information will be based upon buying a rental property in cash or hard money and refinancing out of the property via traditional lending (BRRRR Strategy)Initial Phase Data AnalysisPurchase Price Rehab CostRent AmountAfter Repair Value (ARV)Once you understand these data points then you'll have an understanding of how much equity you'll have into the home immediately upon completing your renovation.Next Phase Data AnalysisDetermine your Net Operating IncomeNet Operating Income = Annual Income - Annual ExpenseTypical Investor Expenses (Varies depending upon the investor): Vacancy, Taxes, Property Insurance, Property Management, Property Maintenance, Cap Ex (Capital Expenditures), etc.Once you have budgeted for these expenses, you'll now understand what your NOI for this property is which gives you a much better indicator of how much money you're actually making.Next Phase Data AnalysisVisit your financing terms.
31 January 2017 | 8 replies
I am fully aware that I'll incur both short-term and long-term capital expenditures.
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5 February 2017 | 2 replies
The big thing however is that you do not have room for a budget for repairs or capital expenditures, or even vacancy.
22 February 2017 | 11 replies
Loan amount, loan term, interest rate, rental comps, repair estimates, capital expenditure estimates, insurance quote, utilities, taxes, etc....
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25 June 2017 | 12 replies
Even though it might cast off rents of USD 1.000/month, the state of the house could soon cost so much in maintenance and capital expenditure items that you have a negative cash flow situation.
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18 July 2017 | 1 reply
We will provide an update on expenditures to date in a future post.
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19 January 2016 | 3 replies
@Clint Galliano, the reason that number varies (and most other number too - maintenance; capital expenditure; tax; utilities; insurance; property management...) is because every County has different demographics, which can highly affect the correct analysis between different properties.Sorry about the non-specific answer.
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30 December 2013 | 5 replies
Definitely legal costs in judicial states and trustee costs in trust states are added to the bottom line, they are a capital expenditure.
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14 March 2016 | 13 replies
Does your 250$ cash flow monthly already account for misc expenses such as vacancy, capital expenditure, special HOA situations, etc..?
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20 March 2017 | 2 replies
But, you should also be claiming expenditures associated with running your REI business.