All Forum Posts by: Amaju E.

@Erik W. 

I was able to speak with the wholesaler yesterday and had him circle back with the seller and got the price reduced by 4k to help with the understated amount of rehab that was needed. The final numbers are now 32k purchase + 2k assignment fee + an estimated 12-15k in repairs to get the place rent ready. 

I like how you broke everything down and were able to analyze the prop quickly! I am not looking for a home run with this deal especially since it will be my first deal, so i think with the $4k off the originally price the numbers could work for me as long as i able able to control the rehab budget.  

@Erik Whiting

Hi Erik,

Thanks for your reply. Through conversation with the wholesaler, he mentioned he had 16 other properties in the area. I asked why he wasn’t keeping this one for himself and his explanation was that he only keeps multi family units and not single family.

The current rent in the area after checking rentometer and speaking with a local prop manager comes in around $850 -1k. The ARV is also around 55k.

My strategy with this prop is to buy and hold, then refi aft the renovation is complete and rented.. let me know if there is anything else I should be considering. Thanks!

@Scott T Brady

Hi Scott,

Thanks for the reply, my plan is to buy and hold, then eventually refi to get my cash out once rehab is complete & rented. I will look into a few lenders to see what they think, so thanks for the suggestion..

I just wanted to make sure I am not overlooking anything major since this will be my first property and also out of state with renovations needed.. the contractor says 10k but I am giving myself a 12k buffer.

I also did some research online and also spoke to a local realtor in the area so the 55k ARV is a fair estimate of the value once the rehab is complete. Lmk if I should consider anything else, thanks!

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Hello, 

I found this prop on craigslist and called on the ad. Turns out the prop is with a wholesaler who had It under contract for 35k with a 3k assignment fee. I had the prop assigned to me and completed an inspection. In reviewing the report, the property is structurally sound but will be a lot more renovations completed and not a light rehab like the wholesaler initially mentioned. The wholesaler had estimated needing 5k -6k in repairs for new interior paint, carpet, plus fixing the bathroom and kitchen. 

 I had a contractor walk the prop and he give a 21k quote, but I also have two other quotes for 10k and 8.5k in estimated repairs. If I give myself a buffer of 12k in repairs, is this still a good deal? I am an out of state investor and this would be my first property. I am trying to decide whether I should still move forward with this deal and would appreciate any feedback. Thanks in advance. 

@Mike McCarthy

Thanks for the advice. You are right, i shouldn't sweat the 5k and will wait for the inspection to come back and make sure the property is structurally sound and no major repairs needed. My agent has coordinated an inspector to come out to the property tomorrow. 

@Karl B.

Okay sounds good, thanks. I am having an inspector come out to the property tomorrow. 

@Account Closed

Ended up not moving forward with the prop.

@Account Closed

The expected cash on cash is 12%

The cash flow is roughly $250

The monthly rent is $1200. After repairs the prop could rent for $2k.

I doubt ill be able to add a bedroom. 

My long term play is to hold for at least 3-5 years

I ran the numbers as best i could and used rentometer to get a sense on what the prop could rent for after repairs. The current rent at $1200 is lower that what rentometer estimates in the area, which is $2k combined for both units

@Joe Villeneuve

The initial offer was based on the 1% rule plus taking into account the work that will need to be done. 

I am planning to finance the property. The estimated mortgage will be around 584 and the estimated rent now is $1,200.

@Joe Villeneuve

I had based the original offer on the estimate cost of repair. 

I accepted the offer bc my agent had advised to tie the property up first and since we know work is needed, once the inspection is ordered, i can come back and offer a lower number based on the repairs needed. What are your thoughts on this?

After the mortgage payment, there will be an estimated $600 or so before other prop expenses. 

I will be financing the prop. 

Please let me know your thoughts.

Thanks!