It has been a few months since I have really been active on BP, but my wife and I just came to the conclusion of our second “deal” and I wanted to jump back on to share some of the details and transformation photos wi...

We ran the numbers on a nifty estimation spreadsheet I built: Purchase Details Financing Details Purchase Price $ 90,000.00 % Down 25% Esitmated Closing Costs $ 1,000.00 Down Payment $ $ 22,500.00 Estimated Repairs $ 33,984.00 Loan Amount $ 67,500.00 After Repair Value (ARV) $ 145,000.00 Loan Points 0 Total Project Cost $ 124,984.00 Loan Fees $ - Potential Upside $ 20,016.00 Amortized Over (Years) 30 Interest Rate 4.75% Total # of Payments 360 Monthly P&I $352.11 Total Cash Needed to Close $ 57,484.00 Cash Flow Details Income Future Assumptions Unit 1 Monthly Rent $ 850.00 Annual Income Growth 2% Unit 2 Monthly Rent $ 850.00 Annual Prop Value Growth 2% Unit 3 Monthly Rent $ - Annual Expense Growth 2% Unit 4 Monthly Rent $ - Sales Expenses 7% Additional Revenue $ - Total Monthly Revenue $ 1,700.00 Expenses Expense Forecasts Insurance / Month $ 100.00 Vacancy Rate (%) 5% Monthly Taxes $ 91.50 Maintenance (%) 10% Water/Sewer $ 69.70 Cap Ex Savings (%) 10% Waste Removal $ 57.08 Property Management (%) 10% HOAs $ - Vacancy Rate ($) $ 85.00 Electricity $ - Maintenance ($) $ 170.00 Other Monthly Expenses $ 50.00 Cap Ex Savings ($) $ 170.00 Description of Other: Lawn Mowing Property Management ($) $ 170.00 Total Operating Expenses $ 963.28 Net Operating Income (NOI): $ 736.72 Total Monthly Expenses: $ 1,315.39 Monthly Cash Flow: $ 384.61 Summary Monthly Income $ 1,700.00 Monthly Expenses $ 1,315.39 Monthly Cash Flow $ 384.61 Annual NOI $ 8,840.64 Purchase Cap Rate 9.82% Pro Forma Cap Rate 6.10% Total Cash Needed $ 57,484.00 Cash on Cash ROI 8.03% Rules of Thumb Total Monthly Cash Flow using 50% Rule $ 497.89 1% Rule (Revenue >1% of purchase price) Pass 2% Rule (Revenue >1% of purchase price) Fail Monthly Revenue as % of Purchase Price 1.89% Note – numbers above assume refinancing, maintaining 25% equity.It was immediately apparent upon walking into the unoccupied unit that the “recent renovations” were simply some lipstick trying to cover a pig in hopes we wouldn’t see.

Type of rental (asset) location and I like typing in the Notes window the land description, I'm always having to look it up it seems, so I wanted it handy.

Here is their description of the greater Philadelphia area:Philadelphia-Camden-Wilmington, PA-NJ-DE-MD is ranked #46 out of 300 metros in the country in the month of February.

Great pictures with a great description and the address more of an area like this.

From your description, the property may be legal non-conforming. 

Tweak your descriptions, title, photos daily and you may need to drop your rates to get some 5 stars coming in 

When looking for descriptions of properties I see the below and need help to understand pros and cons of the following,- Long term renters vs Short term renters- 4 family vs commercial 4+ family homes

For example, if only the above information were included in a purchase and sale agreement in my state, it wouldn't be considered a valid real estate contract (legal description of the property is required, and address is not sufficient).So, I would work with a real estate attorney to ensure that your contract has at least the minimum requirements to make it valid in your state.

You can find a complete description herehttp://en.wikipedia.org/wiki/SMART_criteriaWhen you want to improve in any area of your life – Physical, Business/Profession, Spiritual, Personal/Friendship, Familial or Educational – assess your progress with each of the SMART criteria.