I am looking inot buying duplxes in my area for 115-150k.
I am trying to figure out what kind of positive cash flow they will create with zero down and the current monthly rental rates.
Example:
120k with 0 down
2800 a year in property tax
1800 in gross monthly rent
180 a month for proerty manager
How do I figure mortgage ins.?
Home ins?
and what else should I calculate?
Thanks
Looks like you are missing the mortgage payment 
120k with 0 down.
ummm nevermind
I understood what you were saying my point is that I have taken the monthtly mortgage into account. I think that that goes without saying and I am looking how to figure the insurance aand etc.
I posted “120k” because I figured you would undertand that I have taken into account the calculation of the mortgage. I am looking for costs that investors use to calculate profit for example using one month with no rental income.
Know are you gonna help me or make what you consider smart comments?
stoop, chill.
You’re not going to get anywhere with an attitude like that. If little comments like that get your panties in a bunch, you’re not going to get very far.
First of all, what I think you’re looking for is a cash flow analysis of some kind. I think some call it a proforma. It’s basically an income and expense sheet.
How do you factor home owners insurance? Well you call your insurance company and ask how much an investment property policy is. Divide that by 12. If they don’t write such policies, you can ask about their underwriting policies, or just move on to another insurance company.
The mortgage insurance I believe is usually 1% of the loan - divide that by 12 (months) and you pay this until you are at 80% LTV - loan to value.
However, getting bank financing for a 1st time investment with NO CASH on the table will present multiple challenges for you/your company.
From your post, I would advise you to SLOW DOWN. Take out a few books and read them. Don’t take out guru books. You want nuts and bolts type books. Bronchik is good. Also, you can scroll up to the top left side of this site and read articles that are pretty informative.
Also, dude, you’re going to need to understand that cash flow analysis are usually, almost always wrong. Something is always missed and/or at the very least, underestimated. Things you thought were 10%, 5% and 3% of you monthly income are actually, 14%, 9%, and 8%, respectively.
Bottom line is, if you need to take out a loan, pay for prop management and have high taxes (2800) is a pretty high man - that all EATS AWAY YOUR “PROFIT” PROJECTIONS!
Unless you have some good operating funds - CASH AVAILABLE, you could easily find yourself in threat of foreclosure or at the very least, your back against the wall, having to sell to a fellow investor who can pay cash - and leave you with jacksh*t.
Slow down…good luck bro.
I am in the process of buying a house. I am paying 95k and it will appraise for over 125k. (it was appraised, my broker is on vacation so I don’t know the exact amount). I am going to live there for 2 years than take out a Heloc for between 15-25k whatever 80% of the value of my house is. I will try to get the duplex in two years with no money down. I will use the Heloc on my house in case I get into trouble.I have read about 6 books so far. I learn better by asking direct questions than by reading. I just want my first investment property to be a good investment. I am more than likely not going to use a property manager as it will eat most of my profit.
Thanks.