All Forum Posts by: Alexandra Sales

Hi all! 

In need of advice regarding floor joists for a 1930 built home. We just finished inspection and were told there is old termite damage to floor joists and a wood column in the basement. I attached pictures below. Any idea how much this would cost to fix? Companies we have called said they cannot come make an estimate because we are not the owners of the property. Thanks in advance! 

Thank you all for your input and advice! I really appreciate it! I'll have to review my numbers and assess everything again. 

So just to clarify for future reference-- you use the 1% rule on the refi loan amount or the full ARV? @Mike Sola @Jaysen Medhurst

I'd love your input and help on this BRRRR analysis. I've used to BP calculator several times, but am still not sure if I am doing it correctly.

2 bed/ 2 ba (however extra "den" can be converted into another bedroom)

Asking Price: $169,000 .... From previous posts/advice states offer price should be: (ARV x 70%) - Rehab

Rehab: $40,000 (I am estimating on a small property 1,056 sq ft - needs to be fully gutted) 

From analysis: Offer $114,000 (?? seems very low from asking)

20% down

ARV (compared to comps) $220,000

Refinance in 6 months, 30 year amort. 

4.5% Interest (estimated since it is an investment property) 

Rent: $1400 - All utilities paid by tenant 

I am more confused on the purchase price/offer price. Offering 67% of asking price seems very low? The home will need to be gutted, tear down walls/add walls/cosmetic touches etc. 

The first loan will be $92,000 (with 20% down of $114K) and refinance loan will be $154,000 (70% of $220K)? If that is correct, I will receive $62,000 back? If all numbers done correctly. 

Please let me know if I am not understanding this correctly. I appreciate it! 

Thank you @Aaron K.! I appreciate your advice!

Hi All! 

Would love your opinion on a few scenarios... 

1) If you live in an expensive metropolitan city and properties are just too much to purchase, is it a good idea to invest in a property in a more affordable city (buy & hold - rent out), but rent where you live ? (Also knowing you will only be in the expensive city for a few years max)

2) If you have money for a small down payment for an investment but not much after as reserves - would you just keep educating yourself while saving more for reserves? Or look for a property that costs less (less down payment) just so you get started somewhere? 

I appreciate all of your help!!