First Deal #'s - Posted by Scott

Posted by Fun Bob on September 23, 2004 at 15:32:26:

Thanks. Sounds interesting. We all have heard some horror stories about section 8. Good luck

First Deal #'s - Posted by Scott

Posted by Scott on September 23, 2004 at 14:49:45:

Getting close to pulling the trigger on First deal. The maintenace #'s are an estimate. I have tax and Insurance and water pretty tight. It is a duplex price $82,900. Based on my finance abilities the monthly and annual P&L is below. Gives me a 11.6% CAP and @$375 cash flow which I think is pretty good. Please let me know your thoughts. I think I am estimating correctly. I could bump up maintenace a little more to be conservative. I do know their will be vacancies at some point and that will add to my expenses. Thanks in advance for the info.

Scott

Month Annual
Rent 1,200.00 14,400.00
Water (120.00) (1,440.00)
Taxes (108.33) (1,299.96)
Insurance(50.00) (600.00)
Debt Service(417.95) (5,015.45)
Maintenace(120.00)(1,440.00)
SUM: 383.72 4,604.59
Cap Rate 11.60%

Re: First Deal #'s - Posted by Leighland

Posted by Leighland on September 23, 2004 at 23:00:51:

Hey Scott!
from another new investor, congradulations on getting this far, and good luck with your first deal. There is so much information available, some of it is great, and a lot of it is just opinion and speculation. Getting that first deal done is a huge step that many potential investors dont even take. so, again, congradulations, and good luck.

Re: First Deal #'s - Posted by Scott

Posted by Scott on September 23, 2004 at 15:21:24:

The area is Tampa. This will be section 8 (at least currently) as well which helps in the collections aspect of it. It has windows units which I would like to replace w/ Central HVAC when the moment arises.

Re: First Deal #'s - Posted by fun bob

Posted by fun bob on September 23, 2004 at 15:05:36:

the numbers look a lot my first duplex I owned. It worked out well. I’d like to find a property like the one you have found.

Re: First Deal #'s - Posted by Randy (SD)

Posted by Randy (SD) on September 23, 2004 at 15:02:57:

Are you sure you’ve included all of your expenses? You must include a vacancy allowance, possibly advertising, management, reserve, what about trash, gas and electric?

Using the numbers you provided with a 10% vacancy rate I calculate a gross annual cash flow $3165, with a 10% cap rate the market value is $81,800.

Re: First Deal #'s - Posted by fun bob

Posted by fun bob on September 23, 2004 at 15:02:14:

Looks good to me. Do you have a higher non-homestead tax that may kick in over time? What market are you in, by chance?