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Nike Shox Size 15

Nike Shox Size 15

Any deal will cash flow if you put more money down! Try putting 100% down on a property. That not the point, obviously, and that why analysis is done as if you are putting nothing down (even if you aren you really want to do analysis with factoring in money down, you need to charge yourself at least 6% interest, because that is what you would have been making if that money were in a CD.

the rentals in this unique community. There are usually no vacancies. I expect rents to continue to rise, and when my kids go to college in 2 4 years, they will be able to live there if they wish (and yes, they pay rent!)

My friend, you are absolutely not looking at positive cash flow. You are looking at serious, serious negative cash flow in this property. I didn even get into an actual calculation of the expected cash flow because this deal Nike Shox Online

you have to calculate 45 to 50 percent of your gross rent as expenses. Actually, the seller has disclosed that expenses are about 29% of GOI (about the same as other properties we looked at in the area). This includes taxes and management fees. There are no advertising costs because this area is in extremely high demand (rentals are filled by February for the following July July leases).

One thing that too many people have learned the hard way, and I have come to realize as a fact since reading this forum is that you have to calculate 45 to 50 percent of your gross rent as expenses. I know that seems high, but over time it really does work out that way.

A general rule of thumb for maximum purchase price of rentals is to divide the monthly gross rent by .02. That will give you a general idea of the maximum you should pay if there are no repairs needed. Of course, you still have to do Nike Shox Red And White

can you afford the negative cash flow that you will have? There won be. Our tenants will be paying off the mortgage on the property plus the mortgage on our home and all the expenses associated. We may break even or take a tiny profit to begin, but rents will go up.

Looking at the bigger picture, before you spend a dime in expenses you will be getting a 7.5 percent annual return without a day of vacancy. Now start putting your debt service, taxes, insurance, maint., HOAs (if applicable), vacancies, adverstising against it. Wouldn you do better in a Money Market Fund and not have the headache of being a landlord to tenants who Nike Shox Size 15 tend to turn over frequently and could likely be very hard on the place?

was so clearly a loser. Average monthly expenses for a rental property are 50% (some braver souls use 40%) of gross rent. Quick calc in my head. this puts you at a $4900/month loss before factoring in tax benefits.

Originally posted by " littleivy" : I don know where you live, but we can buy a property with 0 down.

I have to jump in because this deal looks scary.

Nike Shox Size 15

Nike Shox Size 15

Actually, the leases have been signed for the next year (begninning July 1), and were signed last January for the coming year. There are, I believe, 6 people signed in each unit (2 in each bedroom). Very typical for this community. They are year leases, which is typical for all Nike Shox On Sale Cheap

:shock: I don have the experience in RE that I do in the stock market (there are far more experienced people on this forum than me), but there are just some common sense things here that put up big :protest: no flags to me.

Nike Shox Size 15

Nike Shox Size 15

Nike Shox Size 15

In you post you say that it is a duplex with excellent income but you don yet have a purchase price or even a price to offer. How do you know that it has excellent income without knowing the purchase price?

Hi Little Ivy,

Originally posted by "littleivy":After taxes, we looking at positive cash flow.

Yowza! Let do some quick math. Insane!

If you are borrowing from home equity for the down patment you are still doing $0 down, you are just moving the expense off of the property and onto your home. You are still paying the money. This deal is absolutely insane. Even if you did manage to get outstanding appreciation (I doubt it) can you afford the negative cash flow that you will have? It sounds like you have fallen in love with the property and will rationalize thew numbers somehow.

Nike Shox Size 15

Nike Shox Size 15

´╗┐Offer price in a buyer's market

a cash flow analysis using real world expense numbers and you should also consider the equity situation.

Nike Shox Size 15

Originally posted by "littleivy":The duplex is in a college town. Rents therefore are also astronomical. The seller is asking around 1.4M and rents are $8800/mo.

We be taking some equity out of our home, using some cash getting the mortgage down.

how many college students do you think would have to pile in to make the monthly rent? Have you factored in vacancy as an expense? Surely, students will be going out in the spring and back in the fall. Just 2 months of vacancy could be very painful. Incidentally, who is telling you $8,800 a month?

Originally posted by "littleivy":I don know where you live, but we can buy a property with 0 down.

I hope you will take a deeper look before taking the equity out of your home.

Sorry to be harsh, but from your last response it sounds like you are not listening! No one wants to see you lose that much money.

Nike Shox Size 15

Forget whether the math works for your area. Why would you ever buy a property like this? I don see any angle where this could be anything but a HUGE loser.

Let me ask you. If you really could get $4,400 for each unit of the duplex, how many college students do you think would have to pile in to make the monthly rent? Have you factored in vacancy as an expense? Surely, students will be going out in the spring and back in the fall. Just 2 months of vacancy could be very painful. Incidentally, who is telling you $8,800 a month? This sounds highly inflated even for California! I have lived here all my life.

We be taking some equity out of our home, using some cash getting the mortgage down. After taxes, we looking at positive cash flow.

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