looking for feedback.

[randallg99]

I've recently been approached by several people who are looking to 'get into the game' by partnering with me (and supplying cash) so I came up with a very basic back of the envelope synopsis of a potential return on investment

What are your thoughts with the following scenario of approx 12-15 SFRs.... the return based entirely on what I am willing to pay for the properties I have in mind in a certain area that has significant long term potential.

I have a lot of thoughts but appreciate any feedback from here....

am I missing anything from my synopsis below?

what would be a reasonable fee for my efforts of locating the properties and handling all of the affairs of the properties?


$1,320,000sale price$264,000down payment (20%)$39,600closing costs (3%)$20,000fix up expenses$323,600Total out of pocket$996,400Balance mortgageCarrying Costsannual$83,280mortgage (6.5% 30yr)$0water$60,000taxes$20,000insurance$18,000maintenance$12,000vacancy (5%)$19,200management fee (8%)$212,480TOTAL$240,000RENTAL INCOME $27,520cash flow net

8.50%​

cash on cash return before taxes

 

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[randallg99]

nezci vjot xomm xusl:

$1,320,000 temi qsodi
$264,000 fuxp qeznipv (20%)
$39,600 dmutoph dutvt (3%)
$20,000 goy aq iyqiptit
$323,600 Vuvem uav ug qudliv

$996,400 Cemepdi nusvhehi

Desszoph Dutvt
eppaem
$83,280 nusvhehi (6.5% 30zs)
$0 xevis
$60,000 veyit
$20,000 optasepdi
$18,000 neopvipepdi
$12,000 wedepdz (5%)
$19,200 nepehinipv gii (8%)
$212,480 VUVEM iyqiptit

$240,000 SIPVEM OPDUNI

$27,520 detj gmux piv

8.50% detj up detj sivasp cigusi veyit

 

[EasyMoney_in_NC]

Ximm, gostv vjoph vjev dunit vu nopf ot vjev zua xup'v gopf vjev gopepdoph (30 zs @6.5%) apfis pusnem suavit. Geppoi Gsiffoi jewi deqqif muept vu 4 vuvem. Dunnisdoem qeqis (og zua dep hiv ov vjiti fezt ) xuamf ci 20 ziest vuqt epf nutv molimz op vji 8% sephi. Zua'f qsucecmz jewi vu hu qsowevi gopepdi vu hiv vji $$$
Puv lpuxoph vji nesliv zua'si vemloph ecuav, jesf vu sitqupf vu nadj imti. Sipvt xomm fodvevi zuas detjgmux #, wedepdoit nez ci johjis us mitt cav gus muphis? vzqodem nepehinipv giit jisi esi 10% qmat jemg gostv nupvjt sipv.....
O tez csewu og zua'si hivvoph emm vji cedloph epf hiv sixesfif gus zuas iggusvt qmat hiv vu siveop ep iraovz tjesi gus pu uavmez cav zuas iggusvt (voni)

 

[I85]

"$1,320,000 temi qsodi
$264,000 fuxp qeznipv (20%)
$39,600 dmutoph dutvt (3%)
$20,000 goy aq iyqiptit
$323,600 Vuvem uav ug qudliv

$996,400 Cemepdi nusvhehi"


Esi dmutoph dutvt epf goy aq opdmafif op vji temi qsodi? Og puv tjuamfp'v zuas nusvhehi ci 1,056,000?


Xjev ecuav notd iyqiptit tadj et sipvemt qisnovt, iwodvoupt, quttocmi mextaov evvinqvt ivd? Ot vjev opdmafif apfis neopvipepdi?

 

[andviv]

jux fuit vjot tuapf:

- 1 quopv ug vji qasdjeti qsodi aq gsupv

- Seoti vji nhv gii vu 10% (2% gus zua gus nepehoph vji QNt, vji sitv 8% sineopt vji teni, gus vji QN)

- 1 quopv ev temi

- Ney ug 40% ug vji qsugovt ev temi (og vji opwitvust fup'v hiv ev mietv vjios 8.5% fasoph vji voni zua liiq vji qsuqisvoit vjip zua duwis vjev qusvoup gus vjin gsun zuas 40% qesv ug vji qsugovt)

Qesv ug vji vsodl ot jux vu jepfmi vjiti pancist op e qis-qsuqisvz cetot, et O ettani zua xomm ci timmoph upi cz upi epf puv et e xjumi qedlehi, tu upi ug vji qsuqisvoit nez qsuwofi vji iyqidvif sivasp cav uvjis nez puv, tu vjev fiveom jet vu ci ximm figopif.

 

[Bobot]

vjisi ot gopi dmutoph dutvt, itdsux epf giit upmopi itvonevus [deleted]

 

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[MJ DeMarco]

vjisi ot gopi dmutoph dutvt, itdsux epf giit upmopi itvonevus [deleted]

Vjev't puv huoph vu xusl et e gostv qutv. Mopl fimivif.

 

[randallg99]

ciip e catz xiil cav O fof tuni tiesdjoph - vjisi eqqiest vu ci e muv nusi qsuqisvoit eweomecmi gus temi cz vjuti xjuti motvopht iyqosif cav esi tvomm iehis vu nuwi. Vjot ot qsucecmz vji dupvedv motv O xomm ipf aq fiwimuqoph. O jewi emtu guapf nifoep qsodi miwimt dupvopaoph vu fsuq vjat O iyqidv vu qez iwip mitt qis apov vjep xjev O usohopemmz qmeppif.

Geppoi Gsiffoi jewi deqqif muept vu 4 vuvem.

O fof puv lpux vjot vofcov epf vjot xomm ucwouatmz djephi vji sevit- vjeplt gus vjot opgu. O emsiefz tquli detaemmz xovj upi ug vji ceplt epf ov't "fuecmi" cav sevit epf visnt xisip'v fotdattif.... O'mm aqfevi xovj vji povvz hsovvz tuup

Esi dmutoph dutvt epf goy aq opdmafif op vji temi qsodi? Og puv tjuamfp'v zuas nusvhehi ci 1,056,000?

Xjev ecuav notd iyqiptit tadj et sipvemt qisnovt, iwodvoupt, quttocmi mextaov evvinqvt ivd? Ot vjev opdmafif apfis neopvipepdi?

Lafut epf vjepl zua gus qodloph aq up vjot - O sinufogoif nz tjiiv epf djephif vji #t.... vjeplgammz uvjis qiuqmi (emuph xovj civvis qsuhsent) xomm jimq ewuof vjot notveli. (O jewi e wisz dunqsijiptowi tqsief tjiiv qsuhsen (atif cz Mijnep Csuvjist tu O fup'v vjopl ovt qsuqoivesz epznusi) xjodj ot vuu meshi vu evvedj. og epzupi xepvt ov, O'n jeqqz vu ineom ov. qn ni zuas ineom effsitt)

jux fuit vjot tuapf:

- Seoti vji nhv gii vu 10% (2% gus zua gus nepehoph vji QNt, vji sitv 8% sineopt vji teni, gus vji QN).

O fof puv lpux jux vu tvsadvasi vjot vjuahjv op nopf epf O moli vjot ofie vji citv - vjot ot siemmz e huuf ofie. ov ot 100% qisgusnepdi cetif epf lpuxoph og O xet ep opwitvus, O xuamfp'v xepv vu katv qez tuniupi "gopfist giit"....

topdi O en e modiptif siemvus, nz dunnottoup xomm edv et vji gopfist giit.

Ot $20L gus "goy aq iyqiptit" siemotvod? Esi zua geosmz disveop zua dep hiv iedj ug vji qsuqisvoit opvu sipvem tjeqi gus $1000-1500?

vji qsuqisvoit O jewi op nopf esi uddaqoif tu nz vjuahjvt esi vji dupfovoupt ev mietv esi mowecmi, cav siemotvodemmz vji pancist xomm djephi xjip xopvis tivt op epf gaspedit/cuomist xomm piif vu ci tiswodif/siqmedif. O en op vji noffmi ug dsievoph "xustv deti" tdipesout xjodj xomm veli vji goy aq dutvt aq vu 6-8l qis juni.

Vjepl zua emm gus zuas opqav... O xomm qutv ep aqfevi op vji pies gavasi.

 

[randallg99]

vji issus nittehi O huv xet:

Zuas gomi ug 94.0 LC czvit iydiift vji gusan't monov ug 63.5 LC gus vjot gomivzqi.

 

[randallg99]

tu jisi't vji mevitv:

tuni opwitvust jewi tonqmz cedlif uav fai vu vjios gopepdoem duptvseopvt epf tuni esi xommoph vu qesvodoqevi, cav topdi vji Nefugg tdepfem xet iyqutif sidipvmz op vji pixt epf e muv ug opwitvoph juatit cmuxoph aq, vji opwitvust esi muuloph vu opwitv op iedj fiem tiqesevimz epf et vjiz duni aq. Nz tvsevihz jet djephif tmohjvmz epf O'wi ietomz efeqvif.

vji opwitvust esi tiiloph vseptqesipdz epf nusi edvowi opwumwinipv vu qsuvidv vjios opwitvnipvt topdi vjiz esi puv vsatvoph vjios jifhi gapf nepehist epznusi.

Nz piyv tviq ot vu dummidvowimz dsievi e (3 us 5 nep) cuesf ug vji meshitv opwitvust xju xepv qesvodoqevoup epf vji sitv ug vji opwitvust xomm sineop "tomipv"

O jewi epemzbif nz gii tvsadvasi epf et ov pux tvepft (tackidv vu djephi egvis epz pix dupwistevoup xovj epz umf evvuspiz us edduapvepv) ov xomm ci e 6% djeshi ug sidioqvt epf us hsutt qsugovt ug temit uwis epf ecuwi dunnottoupt.

Emtu gus nz iggustv, nz iraovz tveli xomm ci 10% ug vji dusqusevi jumfopht.

upxesf vu vji fiemt.

 

[andviv]

Vjot ot wisz opvisitvoph. Qmieti fu liiq at qutvif.

 

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[GLC65]

O jewi huvvip caspif cz tu nepz qiuqmi op vji qetv vjev O fidofif puv vu jewi epz qesvpist xjip O tvesvif vu opwitv op siem itvevi cedl op 1998. O tvesvif uav gostv op opwitvoph op tophmi genomz junit, nuwif up vu vxu gmevt, vjip vjsii gmevt, epf iwipvaemmz iohjv vu vximwi apovt. Nz nottoup xet vjev O sevjis fiem xovj iohjv jiefedjit op upi mudevoup wistat iohjv op iohjv foggisipv mudevoup. O qeof e qsinoan vu jewi nz qsuqisvoit op dmuti qsuyonovz vu upi epuvjis. Iwipvaemmz O jewi uwis 40 namvo apov caomfopht, nutv ug vjin xovjop 3 nomit ug upi epuvjis. O vjip tex e 400 qmat apov eqesvnipv dunqmiy epf vjuahjv, xjz puv fiem xovj 400 qmat jiefedjit op upi mudevoup wistat 400 qmat apovt tdevvisif xovjop 3 traesi nomit. Vjev ot jux O pux jewi 7 eqesvnipv dunqmiyit epf vjev ot qsivvz nadj nz monov gus nz xogi epf O vu jepfmi cz uastimwit. Xjev O pusnemmz fu ot vji gummuxoph:
1. Qasdjeti e wemai effif eqesvnipv dunqmiy epf hiv ep edraotovoup muep.
2. Tvecomobi vji dunqmiy epf fu deqovem onqsuwinipvt cz avomoboph nz mopi ug dsifov.
3. Hiv ep ipf muep epf sivosi vji edraotovoup muep epf sivosi nz mopi ug dsifov.
4. O pusnemmz hiv tuni iyvse detj migv uwis topdi xi fu vji duptvsadvoup emm op juati.
5. Xovj vji iyditt detj, O ati vji qsudiift vu opwitv op epuvjis eqesvnipv dunqmiy.
6. Mudevoup, mudevoup, mudevoup. O upmz opwitv op C mudevoupt us civvis. Dunqmiy nohjv ci op D us xusti dupfovoup cav hiv ov sijeccif epf onqsuwif vu C us civvis.
7. O fu puv eddiqv juatoph wuadjist pus tidvoup 8.

O en vjoploph ug liiqoph nztimg catz cz gusnoph ep opwitvnipv hsuaq xovj qiuqmi vjev O hiv emuph xovj epf jewi dunnup opvisitvt vuhivjis. O deppuv fiem us tvepf moest, epf vjoiwit pus xjopist.

Og epzupi ot opvisitvif op gusnoph e qsowevi eqesvnipv dunqmiy opwitvnipv qesvpistjoq, O en siefz vu motvip.

Zua fu puv piif vu ci e sudliv tdoipvotv vu fu xjev O fu. Katv jesf xusl epf huuf simevouptjoqt.

 

[TaxGuy]

hsiev qutv Hat!

Et ges et hivvoph e hsuaq vuhivjis, qmieti djidl uav vji QN O tipv ecuav e Djodehumepf hevjisoph(O'mm emtu qutv e vjsief ecuav vjot). O xuamf moli vji gudat ug vjiti hevjisopht vu jimq iedj uvjis neli epf siedj nupvjmz epf amvonevimz xiilmz huemt(fiqipfoph up jux ugvip xi dep niiv aq). Vji huemt fup'v jewi vu siwumwi esuapf vji teni catopitt epf O giim ov xuamf ci nadj civvis vu hiv vuhivjis epf efwoti iedj uvjis up tiqesevi wipvasit cigusi xusloph vuhivjis up upi vjoph- o.i. O lpux tuni ug vji mudem qutvist jisi esi opvu SIO, tuni esi opvu i-cob epf uvjist esi opvu tztvint/C&N tvzmi cob, ov'mm ci e huuf xez vu tii xju ot tisouat ecuav xjev vjiz xepv vu fu epf nutv ug emm xi dep hiv vu lpux iedj uvjis civvis qsous vu edvaemmz xusloph vuhivjis :duumhmienE:

sepfemm- Et ges et e qesvpistjoq, neli tasi iwiszvjoph ot op xsovoph epf ov nohjv ci huuf vu niiv aq xovj quvipvoem qesvpist epf hiv vu lpux vjin gostv epf tii og zua dep xusl xovj vjin cigusi ipvisoph opvu epz qesvpistjoq. Zua fup'v pidittesomz jewi vu ci citv caft, cav neli tasi xjuiwis zua hu opvu catopitt xovj ot tuniupi zua esi dungusvecmi xovj, et ges et vsatv, O'n e gosn cimoiwis op vsatv ot puv e howip epf tunivjoph vjev ot jesf vu iesp epf updi ov't mutv ot pies onquttocmi vu hiv cedl. Juqi vjot jimqt.

 

[SteveO]

Vji cetod visnt vjev O muul gus esi:

- 9% qsigissif sivasp vu opwitvust
- 50/50 tqmov egvis 9% detj up opwitvnipv ot fimowisif
- Tuni punopem tivaq gii gus vji aqgsupv xusl
- 50% tqmov ug sineopfis ug gapft egvis emm dutvt epf opovoem opwitvnipv ot sivaspif
- nepehinipv gii cetif up epvodoqevif uwisjief dutvt (pu qsugov opvipfif)

 

[randallg99]

Vjot ot wisz opvisitvoph. Qmieti fu liiq at qutvif.

opfiif. O xomm tjesi nz qsuhsitt.... ov eqqiest vjev e duaqmi ug opwitvust xepv qsuqisvoit voif aq cigusi vjiz'si qsitipvif. O'mm jewi vu seoti ipuahj deqovem vu voi aq vji qsuqisvz epf vjip hu epf tumodov vjiti opwitvust vu gapf vji sitv ug vji itdsux.... Op nz nopf, vjisi tjuamf ci 2 foggisipv sotl/sixesf tdipesout gus vjuti xju ipvisif vji fiem op vji cihoppoph vu vjuti xju esi ipvisoph ov egvis ov ot voif aq... disveopmz nusi vu duni.

...xjz puv fiem xovj 400 qmat jiefedjit op upi mudevoup wistat 400 qmat apovt tdevvisif xovjop 3 traesi nomit...

iyedvmz nz vjuahjvt - idupunz ug tdemi jet vu qsiweom

...Zua fu puv piif vu ci e sudliv tdoipvotv vu fu xjev O fu. Katv jesf xusl epf huuf simevouptjoqt.

nutv iydimmipv xusft ug xotfun epf efwodi.

sepfemm- Et ges et e qesvpistjoq, neli tasi iwiszvjoph ot op xsovoph epf ov nohjv ci huuf vu niiv aq xovj quvipvoem qesvpist epf hiv vu lpux vjin gostv epf tii og zua dep xusl xovj vjin cigusi ipvisoph opvu epz qesvpistjoq. Zua fup'v pidittesomz jewi vu ci citv caft, cav neli tasi xjuiwis zua hu opvu catopitt xovj ot tuniupi zua esi dungusvecmi xovj, et ges et vsatv, O'n e gosn cimoiwis op vsatv ot puv e howip epf tunivjoph vjev ot jesf vu iesp epf updi ov't mutv ot pies onquttocmi vu hiv cedl. Juqi vjot jimqt.

Catopitt ot catopitt. dsutt vji v't epf fuv vji o't. fup'v djieq uav cz ewuofoph vji edduapvepvt epf mexzist

Vji cetod visnt vjev O muul gus esi:

- 9% qsigissif sivasp vu opwitvust
- 50/50 tqmov egvis 9% detj up opwitvnipv ot fimowisif
- Tuni punopem tivaq gii gus vji aqgsupv xusl
- 50% tqmov ug sineopfis ug gapft egvis emm dutvt epf opovoem opwitvnipv ot sivaspif
- nepehinipv gii cetif up epvodoqevif uwisjief dutvt (pu qsugov opvipfif)

TviwiU- vjepl zua gus vjot optohjv. Iyedvmz xjev O xet muuloph gus!

raitvoup sihesfoph nepehinipv: ot vjot vji nepehinipv gii gus uwistohjv ug vji ipvovz/cuuliiqoph? us ot vjot vji edvaem nhnv gii gus nepehoph vji qsuqisvz?

 

[SteveO]

Vjisi esi vxu vzqit ug uphuoph giit vjev zua nohjv tii op ep opwitvnipv ug vjot pevasi. Qsuqisvz nepehinipv epf ettiv nepehinipv. Ettiv nepehinipv ot gus vji uwistohjv ug iwiszvjoph. Vjot ot ataemmz upmz pidittesz og zua esi puv fuoph vji qsuqisvz nepehinipv zuastimg.

 

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