All Forum Posts by: Andrew Angerer

Originally posted by @Amanda G.:

Thanks for sharing! I have also used BP's calculator as a base, and then added my own twists. In my case, a COC calc for SFR, and also with or without property management. Thanks again.

Yes, their calculators are a great start, sounds like yours help too, I am mostly working on small multi families at the moment. 

Hey everyone, I am a huge excel/google sheets nerd and I have made a few spreadsheets for myself, partially to help teach myself how certain rules and variables of REI work, partially to streamline looking at deals.

I have recently built one, for the purpose of deciding on what could be a good offer price for a multifamily unit. I borrow the wisdom from the book ABC's of Real estate investing  by Ken McElroy (Rich dad). Specifically in chapter 7 he explains that after verifying ACTUAL income and expenses, that to find how much the property is actually worth, divide the NOI by the CAP rate and this will give you the number you should offer.

I understand that bigger pockets has many helpful calculators, but I thought that there wasn't one that quite fit what I was looking for, especially if you do not know the ARV.  Plus, this is a super simple calculator to use to funnel out bad properties.

I am looking for feedback as to what you all think! If you like it, feel free to use it.

https://docs.google.com/spreadsheets/d/1CAIJQ1bBFa...

Thanks everyone for the feedback, I personally love vinyl flooring so that is going to be a standard for me as well.

Hey man, sorry I never replied. I would say that the best way to get good tenants is to get referrals on the person, see what other people have said.  Never, never rent to family or friends!

Sometimes, doing the right thing for good Karma is what life is all about. You'll get a good deal soon!

@Saul L. Now that's creative!! Plus it's a win win so even more points to you. I heard of a situation where a large pine tree had to be cut, instead of spending $2k on it, the owners donated it to the city to be their Christmas tree. Not only was it free to remove, the tree ended up being a tax write-off. There are always creative ways to real estate issues.

@Dennis M. Especially NJ, the taxes alone would destroy any cash flow. Plus I can only imagine all the extra "fees" the state may have. The Midwest is the cheapest market to enter, I would never touch the coasts.

Hey everyone, I belong to a local REI facebook group which recently had a discussion about carpet, do you buy cheap carpet and replace every time a tenant leaves? Or do you buy quality and hope for the best when you clean it?

The conversation became about much more than carpet of course, discussing paint, drywall etc etc.

My question to you all is, do you prefer quality or do you buy cheap and replace? Id love to hear what you all think, I am more in the replace category.

Good to be skeptical, don't get locked into an area you can't get out of. 

Aaron K explains it well, I prefer examples. Lets say you find a distressed SFH for 50k plus 30k of rehab needs. You would need to get a loan of 80k and put in 20% or 16k. You would get this loan from hard money lenders, which have higher interest rates than most other loans. After completion of repairs, you let the property season" and put a good tenant in it for a year. After the seasoning period, you get a new appraisal to find that the property is now worth 100k. Banks like to see good properties with a history of good cash flow, with the new appraisal, it will be easy to get a 30year mortgage for 100k that has a much lower interest rate than your hard money lender. With that mortgage back, you can now pay back your hard money lender loan and all the money you put into the down payment is back in your hands.

This strategy allows for "infinite" ROI because now, you have no money in the property but it is automatically giving you cashflow; assuming the higher mortgage payments do not eat into your income too much.

This is a very basic example and does not cover all the bases, but does give some insight into the power of BRRRR investing. Let me know if you have anymore questions, I'd love to answer.