How to Make ANY Rental Property Cash Flow Before You Buy It
Published: 2025-08-27
Status:
Analyzed
Published: 2025-08-27
Status:
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The 2-bedroom upstairs apartment, currently at $800/month, could be increased to $900/month.
"I feel like it could easily be brought up to 900."
Pending
The 1-bedroom upstairs apartment, currently at $600/month, could be increased to $750-$850/month.
"I think definitely a one-bedroom could be increased to probably 750 to 850."
Pending
Basic renovation costs for the two outdated units are estimated at $10,000.
"So, that is just like the basic renovation of these two others. So, we're going to use 10,000."
Pending
The After Repair Value (ARV) of the triplex will remain around $275,000 even after $10,000 in renovations.
"I I honestly don't think that adding the 10 grand will increase the value that much. I think you'll be able to increase the rents. So, I would say it'd probably stay at 275"
Pending
The property's appreciation rate is expected to be 3% annually.
"I used um bright investor and they said like the annual growth for appreciation like the last 5 years averaged about 3% for this... this market. So I like that. I like using 3% personally."
Pending
Overall rent growth for the property is expected to be 2% annually.
"I would say probably we could put 2% for this."
Pending
Repairs, maintenance, vacancy, and capex are each estimated to be 8% of rental income.
"For a property like this that's older, I'm going to do 888 across the board."
Pending
Property management fees will be accounted for at 10% of rental income.
"I do, but I always account for it 10%."
Pending
Annual costs for lawn care and snow plowing are estimated at $3,000.
"That would probably be about 3,000 per year for both of them."
Pending
Ashley intends to make an initial seller financing offer of $200,000 for the triplex.
"I think I would start out at the 200 and just let them know like I'm open to negotiate."
Pending
Ashley plans to make a combined offer of $350,000 for the triplex and an additional duplex.
"I will buy both of them for you know 350"
Pending
The current $800/month 2-bedroom unit in the triplex could be increased to $900/month.
"I feel like it could easily be brought up to 900. Rents are going for a two-bedroom between $900 to $1,000 in this market."
Pending
The current $600/month 1-bedroom unit in the triplex could be increased to $750-$850/month.
"definitely a one-bedroom could be increased to probably 750 to 850."
Pending
Investing $10,000 in renovations for the triplex will not significantly increase its After Repair Value (ARV) beyond the asking price of $275,000, but will increase rents.
"I honestly don't think that adding the 10 grand will increase the value that much. I think you'll be able to increase the rents. So, I would say it'd probably stay at 275"
Pending
Rent growth in this market for the next 5 years is predicted to be steady and stagnant, not seeing drastic increases like in the past 5 years.
"But I don't see that drastic increase happening the next 5 years or so. But like I think it'll be more steady and stagnant."
Pending
Ashley believes she could secure seller financing for the triplex at a 3% interest rate over 30 years.
"Maybe it's only a 3% interest rate. The last seller financing I did was a year ago, and I did that for 30-year fixed at 3%."
Pending
Ashley predicts she can increase total rents for the triplex by $250/month over the next couple of years.
"I know I could probably boost rents over the next couple of years and that would get us so we already know we could do 250 in a rent increase"
Pending
Ashley plans to make an initial offer of $200,000 for the triplex.
"I think I would start out at the 200 and just let them know like I'm open to negotiate."
Pending
Ashley plans to make a package offer for both the triplex and an additional duplex for $350,000.
"I'm also going to do is there's that duplex he wants to sell right away too. So and presenting this as a package deal like okay I will buy both of them for you know 350 and not even say how much is allocated to each one."
Pending
Ashley will not offer more than $225,000 for the triplex.
"I don't think I can offer more than the 225 for this."
Pending