Updated about 2 years ago on . Most recent reply
[Calc Review] Help me analyze this deal
*This link comes directly from our calculators, based on information input by the member who posted.
Hello BP!
I am a new out of state investor looking at getting into my first BRRRR. I came across this property in Iowa. It's a duplex unit and the other side has already been remodeled by another investor and is currently listed for sale at $159,000. The side I am looking at is listed at $29,900. The report I generated is based off them accepting a $25K offer. I'd like to keep purchase price and rehab under 100K all together so I am planning a rehab of around 70K. I am hoping for some advice on things I may be missing from my thought process.
I've already spoken to my local credit union here in SoCal and would be putting 15% down on the initial purchase price of the home. I know that I would also need to qualify for a construction loan to rehab the property. I'm not sure if I should just see about qualifying for a much larger loan up front that would cover purchase price and rehab costs or if I would need to qualify the two loans separately.
I am open to any advice or constructive criticism. With the proof of the other side being completely renovated, it seems like that would be the best comp to have as a reference for what is possible with the unit I am looking at, and it looks to me like it should be a good investment. But having a set of more experienced eyes on it would be appreciated.
Hopefully this all makes sense and I'm not just rambling on and on. Lol
Thank you again!
Side note: I have spoken to an agent that is also an Investor in the same area and he seems like it would be a good choice to go through him. But I've also wondered if approaching the listing agent and having her represent me as well as the seller might be helpful in getting them to accept a lower offer? Just a thought I've had.