Heritage Park (Clairemont)

[brianlp518]

Thanks for the input. Haven’t owned any rental properties before, but looking to get into it. Any areas that I should be looking at for this >30% cashflow?

[sdduuuude]

Don’t forget to subtract the interest you would otherwise be earning on the 20% down.

[sdduuuude]

Don’t forget to subtract the interest you would otherwise be earning on the 20% down.

[sdduuuude]

Don’t forget to subtract the interest you would otherwise be earning on the 20% down.

[sdduuuude]

Don’t forget to subtract the interest you would otherwise be earning on the 20% down.

[sdduuuude]

Don’t forget to subtract the interest you would otherwise be earning on the 20% down.

[brianlp518]

[quote=sdduuuude]Don’t forget to subtract the interest you would otherwise be earning on the 20% down.[/quote]$34,000 (down payment + closing) * 5% APY pre-tax (very gracious) / (year/12 months) = $142 a month

The way that I see it: (most likely very jaded and inexperienced)
Initially, I’m guessing pulling in >10% APY on an investment would equal the cash flow of a property like this (not considering improvement, vacancy and incentive costs). After rents increase in 5-10 years, the cash flow on this would greatly outweigh any investment options.

Questions:
1) For those that are more experienced, is there anything that I’m overlooking?

2) According to SDEngineer:
[quote=SDEngineer]I believe most of the time for investors to consider it a good “opportunity” you need to have at least a 30% cashflow in the unit (to cover the expected higher maintenance associated with rentals as well as vacancy times, any rent incentives (especially in todays market), etc). Still, I think there’s a lot of places that are getting close to that mark. These might be some of them.[/quote]an investor would look for a cash flow of >30%. My numbers above show a cash flow of $275/$927=29.6%. What values should that 30% be based upon (e.g. mortgage, HOA, property tax, vancancy rate, etc.)? Considering an $1100 rent (the high end of what I found on Craigslist), the cash flow would be $425/$927=$46%.

3) Are there any better areas/properties that would give a cash flow of >30%?

[brianlp518]

[quote=sdduuuude]Don’t forget to subtract the interest you would otherwise be earning on the 20% down.[/quote]$34,000 (down payment + closing) * 5% APY pre-tax (very gracious) / (year/12 months) = $142 a month

The way that I see it: (most likely very jaded and inexperienced)
Initially, I’m guessing pulling in >10% APY on an investment would equal the cash flow of a property like this (not considering improvement, vacancy and incentive costs). After rents increase in 5-10 years, the cash flow on this would greatly outweigh any investment options.

Questions:
1) For those that are more experienced, is there anything that I’m overlooking?

2) According to SDEngineer:
[quote=SDEngineer]I believe most of the time for investors to consider it a good “opportunity” you need to have at least a 30% cashflow in the unit (to cover the expected higher maintenance associated with rentals as well as vacancy times, any rent incentives (especially in todays market), etc). Still, I think there’s a lot of places that are getting close to that mark. These might be some of them.[/quote]an investor would look for a cash flow of >30%. My numbers above show a cash flow of $275/$927=29.6%. What values should that 30% be based upon (e.g. mortgage, HOA, property tax, vancancy rate, etc.)? Considering an $1100 rent (the high end of what I found on Craigslist), the cash flow would be $425/$927=$46%.

3) Are there any better areas/properties that would give a cash flow of >30%?

[brianlp518]

[quote=sdduuuude]Don’t forget to subtract the interest you would otherwise be earning on the 20% down.[/quote]$34,000 (down payment + closing) * 5% APY pre-tax (very gracious) / (year/12 months) = $142 a month

The way that I see it: (most likely very jaded and inexperienced)
Initially, I’m guessing pulling in >10% APY on an investment would equal the cash flow of a property like this (not considering improvement, vacancy and incentive costs). After rents increase in 5-10 years, the cash flow on this would greatly outweigh any investment options.

Questions:
1) For those that are more experienced, is there anything that I’m overlooking?

2) According to SDEngineer:
[quote=SDEngineer]I believe most of the time for investors to consider it a good “opportunity” you need to have at least a 30% cashflow in the unit (to cover the expected higher maintenance associated with rentals as well as vacancy times, any rent incentives (especially in todays market), etc). Still, I think there’s a lot of places that are getting close to that mark. These might be some of them.[/quote]an investor would look for a cash flow of >30%. My numbers above show a cash flow of $275/$927=29.6%. What values should that 30% be based upon (e.g. mortgage, HOA, property tax, vancancy rate, etc.)? Considering an $1100 rent (the high end of what I found on Craigslist), the cash flow would be $425/$927=$46%.

3) Are there any better areas/properties that would give a cash flow of >30%?

[brianlp518]

[quote=sdduuuude]Don’t forget to subtract the interest you would otherwise be earning on the 20% down.[/quote]$34,000 (down payment + closing) * 5% APY pre-tax (very gracious) / (year/12 months) = $142 a month

The way that I see it: (most likely very jaded and inexperienced)
Initially, I’m guessing pulling in >10% APY on an investment would equal the cash flow of a property like this (not considering improvement, vacancy and incentive costs). After rents increase in 5-10 years, the cash flow on this would greatly outweigh any investment options.

Questions:
1) For those that are more experienced, is there anything that I’m overlooking?

2) According to SDEngineer:
[quote=SDEngineer]I believe most of the time for investors to consider it a good “opportunity” you need to have at least a 30% cashflow in the unit (to cover the expected higher maintenance associated with rentals as well as vacancy times, any rent incentives (especially in todays market), etc). Still, I think there’s a lot of places that are getting close to that mark. These might be some of them.[/quote]an investor would look for a cash flow of >30%. My numbers above show a cash flow of $275/$927=29.6%. What values should that 30% be based upon (e.g. mortgage, HOA, property tax, vancancy rate, etc.)? Considering an $1100 rent (the high end of what I found on Craigslist), the cash flow would be $425/$927=$46%.

3) Are there any better areas/properties that would give a cash flow of >30%?

[brianlp518]

[quote=sdduuuude]Don’t forget to subtract the interest you would otherwise be earning on the 20% down.[/quote]$34,000 (down payment + closing) * 5% APY pre-tax (very gracious) / (year/12 months) = $142 a month

The way that I see it: (most likely very jaded and inexperienced)
Initially, I’m guessing pulling in >10% APY on an investment would equal the cash flow of a property like this (not considering improvement, vacancy and incentive costs). After rents increase in 5-10 years, the cash flow on this would greatly outweigh any investment options.

Questions:
1) For those that are more experienced, is there anything that I’m overlooking?

2) According to SDEngineer:
[quote=SDEngineer]I believe most of the time for investors to consider it a good “opportunity” you need to have at least a 30% cashflow in the unit (to cover the expected higher maintenance associated with rentals as well as vacancy times, any rent incentives (especially in todays market), etc). Still, I think there’s a lot of places that are getting close to that mark. These might be some of them.[/quote]an investor would look for a cash flow of >30%. My numbers above show a cash flow of $275/$927=29.6%. What values should that 30% be based upon (e.g. mortgage, HOA, property tax, vancancy rate, etc.)? Considering an $1100 rent (the high end of what I found on Craigslist), the cash flow would be $425/$927=$46%.

3) Are there any better areas/properties that would give a cash flow of >30%?

[jamsvet]

Run that same scenario about cash flow when you have to replace a dishwasher or refer, toilet, etc.. How about when it’s vacant for one month, two? How about when your tenant leaves and you have to re carpet. Don’t forget when the HOA says “Special Assessment” In the real world, none of these places will make any money.

[jamsvet]

Run that same scenario about cash flow when you have to replace a dishwasher or refer, toilet, etc.. How about when it’s vacant for one month, two? How about when your tenant leaves and you have to re carpet. Don’t forget when the HOA says “Special Assessment” In the real world, none of these places will make any money.

[jamsvet]

Run that same scenario about cash flow when you have to replace a dishwasher or refer, toilet, etc.. How about when it’s vacant for one month, two? How about when your tenant leaves and you have to re carpet. Don’t forget when the HOA says “Special Assessment” In the real world, none of these places will make any money.

[jamsvet]

Run that same scenario about cash flow when you have to replace a dishwasher or refer, toilet, etc.. How about when it’s vacant for one month, two? How about when your tenant leaves and you have to re carpet. Don’t forget when the HOA says “Special Assessment” In the real world, none of these places will make any money.

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