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re: Information for my fellow Real Estate Investors
Posted on 3/16/17 at 1:10 pm to bluemoons
Posted on 3/16/17 at 1:10 pm to bluemoons
So I'm looking at a potential first deal on a SFR buy and hold and these are the numbers:
It's a 3/2 in a well-rented area listed for $109,900, which is about $67.40/sqft. I ran some comps this morning and the most favorable comps around run at about $61/sqft, which would put me at $99,430. I'd probably offer like $97,000 and hope for $100k.
With $5000 down (including like 2% for closing costs), I'd be sitting at $94,430 loan balance at hypothetically 4.75% in a residential loan. So:
Monthly payments (P $ I): $492.59
Insurance: ~$180.00
PMI: ~$56
Monthly maintenance + Vacancy fund: $100.00
Taxes: $115
Property Manager: $120.00 (10%)
Total Expenses: $1080.59
It rented last in 2015 for $1350.00, and the lease comps support this. So assuming I could rent for $1350, it would cash flow at about $270/mo, giving me a 65% ROI.
What do you guys think? It seems like it would be a good deal if I could get it. Two things, though. It needs a fridge, and updated stainless appliances would help. I could do that for less than $2000, and may could use that for leverage for a lower selling price.
Secondly, I'm green on financing. Could someone explain to me whether/why I'd be better off doing a conventional mortgage like above, or a line of credit? I'd like to avoid PMI if at all possible. I'm just ignorant on the various ways to finance.
Thanks.
Reposted from the bottom of the last page
It's a 3/2 in a well-rented area listed for $109,900, which is about $67.40/sqft. I ran some comps this morning and the most favorable comps around run at about $61/sqft, which would put me at $99,430. I'd probably offer like $97,000 and hope for $100k.
With $5000 down (including like 2% for closing costs), I'd be sitting at $94,430 loan balance at hypothetically 4.75% in a residential loan. So:
Monthly payments (P $ I): $492.59
Insurance: ~$180.00
PMI: ~$56
Monthly maintenance + Vacancy fund: $100.00
Taxes: $115
Property Manager: $120.00 (10%)
Total Expenses: $1080.59
It rented last in 2015 for $1350.00, and the lease comps support this. So assuming I could rent for $1350, it would cash flow at about $270/mo, giving me a 65% ROI.
What do you guys think? It seems like it would be a good deal if I could get it. Two things, though. It needs a fridge, and updated stainless appliances would help. I could do that for less than $2000, and may could use that for leverage for a lower selling price.
Secondly, I'm green on financing. Could someone explain to me whether/why I'd be better off doing a conventional mortgage like above, or a line of credit? I'd like to avoid PMI if at all possible. I'm just ignorant on the various ways to finance.
Thanks.
Reposted from the bottom of the last page
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