All Forum Posts by: Benjamin Mccracken

@Rodney Brown It’s all good! I’m pretty new as well so it’s nice to use what I’ve learned thus far to help out!

You want to stick to an area as best as possible before moving into a new area. 3.8 miles can make the difference between a very rough neighborhood to a luxury neighborhood. Slowly change last sold date, slowly increase / decrease SQFT, age, number of BD / BR. Adjust your subject based off of the comps you find. If its smaller, then likely yours will go for a bit more and vice versa. Only once you've exhausted all of those methods should you expand farther out. Obviously once you leave the area you'll have to take in account the different schools, crime etc. 

Check out the 70% rule under tools. That's there to help you out and protect you. There's a good number for every single deal out there. The question is whether or not you can purchase home for that price or not. So, for your example you wouldn't be able to purchase this home for more than 58,500 according to the 70% rule. Of course there are always other variables so it's not an end all be all but it will definitely help you out in conjunction with the other calculators and your personal research and knowledge. 

5% down on a home that's 450k is already going to be difficult to break even or even cash flow on a property. Using the 1% rule of rent being 1% or the home price is going to go down the further the higher the price of the home ends up being. Also I think your pre and post acquisition numbers are skewed. You're putting down 5% ($22,500) plus your points and holding fees, bringing you to $44,500 cash down. Then fixing and Refinancing only $332,500? Requiring you to fork over $148,000. Both of your loans are 5%? Looks like you're attempting to use hard money on your acquisition since your refinancing after 6 months. 5% is extremely low for a hard money loan. You're looking at 8-12% sometimes more. Most hard money lenders wont loan more than 75% or your ARV (after repair value) so you would only be able to get that loan for $356,250. So you would have to come out of pocket a lot of money. All in all if these numbers were accurate this would be a bad deal. Hope this helps a bit.

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*This link comes directly from our calculators, based on information input by the member who posted.

Hey fellow BPers. This deal probably wouldn't run the entire 50k repair cost but I'm being conservative as it still would be a heavy rehab. This deal would utilize hard money assuming they loan 75% or the ARV and the rest being cash out of my pocket. It's an older home built in the 20's so even though most of the capex will be new, I kept it at 10%. Soooo yeah pick it apart! Thanks in advance!

Stoked, this will be my first bigger pockets meet up! See you there!

@Steve Hall Thanks for the advice Steve, I'm reading and listening every single day! I'm very aware that I'm nowhere close to where I need to be in order to successfully commit to purchase a property yet. I'm just following @Brandon Turner advice and trying to analyze one property a day so it becomes second nature eventually. 

@Nic S. Thanks I appreciate the advice! I'm not even close to actually looking for an investment property yet, I'm just trying to learn the systems.