Place is in pretty good condition. Doesn't really need any work. I put $2000 as a just in case. I put the ARV as I believe when I refinance it, it will be valued at that price by the bank.
Place is in pretty good condition. Doesn't really need any work. I put $2000 as a just in case. I put the ARV as I believe when I refinance it, it will be valued at that price by the bank.
@Bill Dengler a few questions, $2,000 on a 3-Plex as the project repair cost is for what? Unless you're getting this property far below it's appraised value, there is zero chance the bank appraiser is going to value the project $140,000 higher with $2,000 of work completed. What did you use to get your ARV? Did the comps have the same type of finishes your property has? Did you buy this off market and deeply below market and that's factored in to that mysterious $140,000 increase in value?
@Ray Johnson - the property has been updated, kitchens and baths. The 3 plex next to this one sold for 312,000 and nothing was updated. I am assuming this one is undervalued. Hard to figure out as there are very few multi families in this area. They are mostly SFH. I put $2000 repair as a buffer just in case. I don't believe anything needs to be done.
@Ray Johnson - I have the cash to layout for the property to get it quickly. Then I want to refinance it to get my money back out so I can use it again.
@Bill Dengler same reaction as everyone else. ARV is a bit optimistic. Have your agent produce some comps for you. Run your numbers again with a more modest ARV (350k or so) and see if the deal stands on its own.
@Sen A.@Ray Johnson@Caleb Heimsoth - thank you for taking the time to reply to my post. To be honest I have been educating myself on all of this since the beginning of the year. I know I am going thru analysis paralysis, because of the numbers. I am constantly doubting myself if I am using the calculator correctly. I need to break the paralysis.
318K and only 3000 in rent . Nope, I’d keep looking . Also Your expenses are not really accurate because your not being conservative by using 5% . Marginal deal at best