I am trying to do my second deal and having trouble pulling the trigger. I'm doing this with my brother, who is going to put up 60-80% of the upfront capital. I will/am doing all the leg work, research, deal finding, viewings, management after closing, finding tenants, etc. We have looked at a few recently, and I put a low-ball offer on one. The sellers came back two weeks later asking if my offer was still open. I'm on the fence on that one.
This recent one has got me in a pickle:
Three family, all units rented under market value. Could get $1350-$1500 for each, currently at ($1200, $800 & $1200). Inside is in great condition, needs very minor updating. Exterior is terrible. Needs new siding, rebuild of two front porches, new roof, and replace/repair most exterior trim.
Thinking of using Patch of Land, they offered 10% with 2.5 points for a loan on 80% of purchase price and 100% of reno costs over a 12 month term. These numbers seem high, but if the reno estimate and post reno value is accurate, it seems like we could refi and pay off the loan easily. Seems to me like a pretty risky one, but with lots of potential, so I am paralyzed!
Any thoughts would be super helpful!
Sorry, asking is $389K...
You didn’t mention what it would be worth after you rehabbed it
Hi Caleb, that's part of why I am so paralyzed on this one. I am having a hard time finding good comps. Thinking I can refi for 370-390, but that's just an estimate based on what I know about the area. It seems like without a good handle on the post rehab value, I am taking a big risk. May have to pass on this one...
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