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21 May 2024 | 2 replies
does this include all the expenses, capex, maint costs etc?
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22 May 2024 | 10 replies
.### Calculating ROI- **Total profit (not accounting for costs like maintenance, taxes, etc.):** Total amount received - initial investment = $601,816.40 - $235,000 = $366,816.40.- **ROI over 30 years:** ($366,816.40 / $235,000) x 100 = 156.09%.### Calculating Annualized ROI (CAGR)The formula for CAGR (Compound Annual Growth Rate) is:\[ CAGR = \left(\frac{Final\ Value}{Initial\ Value}\right)^{\frac{1}{Number\ of\ Years}} - 1 \]In your case:\[ CAGR = \left(\frac{\$601,816.40}{\$235,000}\right)^{\frac{1}{30}} - 1 \]Let's calculate this:\[ CAGR = \left(\frac{601816.40}{235000}\right)^{\frac{1}{30}} - 1 \]\[ CAGR = (2.56)^{\frac{1}{30}} - 1 \]\[ CAGR \approx 1.0303 - 1 \]\[ CAGR \approx 0.0303 \text{ or } 3.03\% \]This means your annualized return is about 3.03% each year over 30 years.
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20 May 2024 | 8 replies
The same loan brokers that do MH also do RV, as do the insurance companies.We own both, and the only benefit of an RV park is that -- if you find the right one -- you can ramp up revenue faster because it costs you nothing to fill a vacant lot.
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20 May 2024 | 6 replies
In either scenario you want to make sure you account for the "cost" of the money in your deal analysis so you account for your HELOC or mortgage payments.
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21 May 2024 | 58 replies
Much like many of the so-called gurus, the cost for their "training" will eventually run into tens of thousands of dollars.
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20 May 2024 | 11 replies
Yes, I had blue tapped up properties, made em come back 2-3 times at properties before and it sucks for all but my painter, he really get's on his guys for it BIG time, because it's costing him big time.
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22 May 2024 | 13 replies
The other consideration is the opportunity cost of buying just for appreciation.
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21 May 2024 | 5 replies
Unless you are an experienced builder, securing a bank loan can be difficult, and hard money loans often have high interest rates, which can become costly if your project faces delays.
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20 May 2024 | 14 replies
It sounds like there are serious issues that the previous owners never wanted to fix or were too costly.
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20 May 2024 | 1 reply
Both properties fall into Class B- category and has no HOA and no rental restrictions.Here are the details for each property:Property 1:3 Bed, 2 Bath (1020 sq ft)Purchase Price: $250,000Moderate rehab needed (Kitchen, floor, bathroom sink vanity, light & fan fixtures, interior paint)Rehab Cost: $30,000After Repair Value (ARV): $295,000Down Payment: 20% (Out of Pocket: $50,000 + $30,000 (rehab) = $80,000)Projected Rental Income Post-renovation: $2100/monthProperty 2:2 Bed, 2.5 Bath (1168 sq ft)Purchase Price: $230,000Moderate rehab needed (Kitchen, floor, bathroom sink vanity, light & fan fixtures, interior paint)Rehab Cost: $30,000After Repair Value (ARV): $295,000Down Payment: 20% (Out of Pocket: $46,000 + $30,000 (rehab) = $76,000)Projected Rental Income Post-renovation: $1900/monthThe location is moderate, with amenities like shops, restaurants, a mall, and a baseball stadium within a 5-mile radius.Considering buying both as they are in the same building, the total cost and income overview would be:Total Price for Both Properties: $478,000Down Payment & Closing: $96,000 + $10,000 = $106,000Total Renovations: $60,000Total Price (Including Renovations): $478,000 + $60,000 = $538,000Total Out of Pocket: $166,000Projected Gross Rent Monthly: $4000The rate of interest for the mortgage is 7.5%.I am currently evaluating: A) The break-even point for two townhomes considering a cash investment of close to 32%.