Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
Hey folks,
A triplex came on the MLS today piqued my interest, so I decided to analyze it. Then I thought... maybe I should record my thoughts out loud to share with the BiggerPockets audience. Maybe that'll help folks?
So... I did :)
Enjoy! (And if you like the video, be sure to click to go to the actual YouTube page and give it a "Thumbs Up" on the YouTube player!)
(click the gear on the bottom right corner to change the video quality settings to HD)
What do you think? Would you buy it? What price would make it "awesome" to you?
Thanks for putting this online. I'm a real newbie. I think the parts that I am still unsure about are the costs. I haven't looked at any properties but it sounds like you have to know what the costs for insurances, water, etc. in the area are. Are there any rules of thumb for costs if you are looking online at different markets and are unfamiliar with those markets? Thanks.
Very good tutorial on how to run an initial business case on a property.
In the section of the video where he is discussing the 50% Rule (11:55 - 12:45) I don't understand where the real value of $105 cashflow/month differs from the theoretical 50% cashflow/month of $310 if the included variable expenses only total 30%?
Do the fixed expenses (water, garbage, insurance, flood insurance, property taxes, landscaping account for this difference?
By adding the closing costs and the initial repairs into the COC ROI (Cash on Cash) equation, you get results that are only indicative of the first year of owning the rental. Wouldn't it be better to analyze the COC returns by not including the closing costs and initial repairs or at least taking the $5000 in repairs and $2500 in closing costs and spreading it out over several years??? This would give more accurate numbers for determining your COC return rate.
I made an auto-populating spreadsheet that I derived from the four-square worksheet, and I'm happy to share it with the BiggerPockets community. I also wrote a program to automatically populate the spreadsheet with MLS listings from my agent. I'm leaving this here in case someone wants to adapt my version of the spreadsheet (supports multiple properties, one per row), as well as an automated, programmatic way of populating the spreadsheet given a paragonrels.com or fnimls.com link from an agent/broker. Enjoy!
The program now supports given only a list of MLS numbers and a System ID. If your region's MLS doesn't use Paragon's undocumented API, the code won't work without significant modifications to the get_properties() function. I am planning to have this code running on a website using Flask soon so I can access it while mobile, but it will still need to use the Paragon API which not every region uses.
@Brandon Turner Hi and thanks for much for the video/lesson. It has been very helpful with my operations that I can't begin thank you enough. Thanks and have a Wonderful Day.
What you didn't talk about is potential value adds. Laundry. That's easy to throw in a spreadsheet. But what about possibility of a big lot giving the potential to add bedrooms/units to property, or even subdivide and build a new single to sell. I am currently intrigued by a 3-unit wholesale property I would want to BRRRR in Pawtucket, RI. Those numbers are not great. But it has a large lot, which I could subdivide and other sell for $40 or build a $150k single family and sell it for $225k. How do you throw that into a proforma?
Amazing! My gf and I live in Florida and just went to our first set of open houses yesterday---I've learned so much by just listening to your podcasts and happy to see that you share valuable info like this for me to assess deals! I look forward to learning more.
Recently found this site last month and learned a lot from the available 'free' stuff.. Watched a webinar last month and went PRO, thanks Brandon! Closing on my next THREE properties (one duplex, two MFR) this week!
Question on the new 'rental calculator', am I missing the place where you can put in the ARV or Appraised value, etc to see the equity screen? For example, a renter wouldn't let an inspector in due to Covid so the previous buyer pulled out and I was able to get the property quite a bit lower than list and the previous offer (b/c I didn't insist on an inspection on that side as it's only been occupied since 11/19). I am able to figure out everything except for 'equity'.
The calculator you offer now(2020) is not the same as the one in the video. For instance, I can't input the exact numbers I'm working with in my current situation. Instead of percentages, you should be able to enter exact figures....It seems the older one such as the one in this tutorial is better. Am I missing something?