All Forum Posts by: Allen Zhu

Hey everyone,

I'm new to real estate and I’m looking for feedback on a project I’m working on. Here's the deal:

• Purchase Price (PP): $95k
• Renovation Budget (via HML): $60k
• Total All-In Cost: $155k
• ARV (After Repair Value): Around $200k
• Refinance (via DSCR Loan): 7% interest, 30-year fixed

Refinance Details: After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:

• HML: $60,000
• Interest/fees: $3,585
• Other costs: $1,800
• Total to pay back HML: $65,385

After the refi, I will have $84,615 left in cash.

Cash Flow & Expenses:

• Expected Rent Income: $1,700/month
• Property Management (PM): $126/month
• Insurance: $100/month
• Taxes: $126/month
• Mortgage: $1,043.75/month

Total Expenses: $1,395.75/month
So my monthly cash flow is about:
$1,700 - $1,395.75 = $304.25/month in cash flow.

Return on Investment:

• Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).
• Annual Cash Flow: $304.25 * 12 = $3,651
• Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%

I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new. I’m also using a 6% vacancy rate, which brings the net monthly cash flow to about $200 and a CoC return of 13.06%.

Summary:

• I’ve created around $50k in equity (difference between ARV of $200k and total investment of $155k).
• I’ve got about $10k or $18,385 left in the deal (factoring in closing costs).
• The cash flow is healthy, and the CoC return is strong, especially as a first-time investor.

Questions:

• Does anything look off or could I improve the numbers?
• Is my CoC return solid, or do I need to adjust anything based on my market?

Thanks in advance for any feedback!

Hey everyone,

I'm new to real estate and I’m looking for feedback on a project I’m working on. Here's the deal:

• Purchase Price (PP): $95k
• Renovation Budget (via HML): $60k
• Total All-In Cost: $155k
• ARV (After Repair Value): Around $200k
• Refinance (via DSCR Loan): 7% interest, 30-year fixed

Refinance Details: After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:

• HML: $60,000
• Interest/fees: $3,585
• Other costs: $1,800
• Total to pay back HML: $65,385

After the refi, I will have $84,615 left in cash.

Cash Flow & Expenses:

• Expected Rent Income: $1,700/month
• Property Management (PM): $126/month
• Insurance: $100/month
• Taxes: $126/month
• Mortgage: $1,043.75/month

Total Expenses: $1,395.75/month
So my monthly cash flow is about:
$1,700 - $1,395.75 = $304.25/month in cash flow.

Return on Investment:

• Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).
• Annual Cash Flow: $304.25 * 12 = $3,651
• Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%

I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new. I’m also using a 6% vacancy rate, which brings the net monthly cash flow to about $200 and a CoC return of 13.06%.

Summary:

• I’ve created around $50k in equity (difference between ARV of $200k and total investment of $155k).
• I’ve got about $10k or $18,385 left in the deal (factoring in closing costs).
• The cash flow is healthy, and the CoC return is strong, especially as a first-time investor.

Questions:

• Does anything look off or could I improve the numbers?
• Is my CoC return solid, or do I need to adjust anything based on my market?

Thanks in advance for any feedback!

@Chris Seveney looking to refinance out to a dscr loan. For a rental property . Currently looking at this company called 212 loans based out of Texas 

@Alexander Pagano I'm thinking about a company called 212 Loans based out of Texas

Is hard money lender worth it for first time investors? The company I'm looking at changes 10% just wanna get some info! 

Thanks in advance!

Hi , first time real investor i want to invest out of state mainly in detroit , i see 2 companies i would like to work with i was seeing if many people use 2 realtors?

Thanks , 

Allen

Anyone on bigger pockets invest in Tallahassee , FL ? 

Is tallahassee a strong rental market? homes there are quite pricey for the size. 

thanks looking forward to hear from you guys!

I have heard many investors invest in Detroit , Michigan 

Is Detroit really a block by block area meaning zip codes don't dictate in class neighborhoods? 

Is Detroit a good investment? homes don't seem to be in great shape and block by block homes all seems to run down. 

Interested to what you investors think! 

Thanks , 

Allen