All Forum Posts by: Anthony Villasenor
Anthony Villasenor has started 1 posts and replied 6 times.
Post: Do these numbers make sense? Is this worth my time?
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Originally posted by @Cassi Justiz:
I can't tell you if it's worthwhile or not, but I can give you a bit of info.
- Most lenders will not allow a HELOC on a property that needs substantial work. If you plan to use a loan for the rehab portion, it would likely need to be a personal loan and not tied to this specific house.
-6 months is pretty standard for seasoning for a cash out refinance. Some lenders require as long as a year. Commercial lenders will have different policies but it's always good to plan on a 6 month seasoning period.
How confident are you in your rehab numbers and ARV? If you can legitimately get $400/month with only leaving $5k in the deal, that is solid. But that seems like a really low price on a 70k ARV property that only needs 20k of work.
I'm confident in my rehab #'s 18-20k. My friend is a contractor and I'm handy so we are saving 90% of the labor. As far as rehab $ it would be coming from a hard money lender. Looking at recently sold properties in the area for the same Bed, bath and sqft I've seen 75k for originalcookie cutter & up to 100k for really well upgraded homes. I said 65K ARV to expect the worst since this is my first investment home. Im sure it has the potential to be a 70-80k house if done right but I'm just NOT sure. The only thing I'm 100% certain with is the rehab costs. All the other numbers scare me no matter how many forums I've been on and videos I've watched. I'm willing to share all the information for the property I don't know how much is allowed on here without asking for a "mentor".
Numbers :
From wholesaler $23,000 just got this offer accepted today. Haven't submitted EMD.
+ closing costs
About $25k total
+ Rehab 20k (hard $ lender)
ARV 65k rounding low JUST incase
Rental rate in the area for the size. Renovated homes go for $850-$1000.
I'm trying to do the BRRR method here. If I'm getting stuck in a box and not seeing the big picture please let me know. The other gentlemen Joe is telling me to sell. Wouldn't that put me under?
45k in. 65k Appraisal to sell …..after agent commissions, selling concessions, closing fees and taxes I’d be under 45k.
Post: Do these numbers make sense? Is this worth my time?
- Posts 6
- Votes 0
Originally posted by @Cassi Justiz:
I can't tell you if it's worthwhile or not, but I can give you a bit of info.
- Most lenders will not allow a HELOC on a property that needs substantial work. If you plan to use a loan for the rehab portion, it would likely need to be a personal loan and not tied to this specific house.
-6 months is pretty standard for seasoning for a cash out refinance. Some lenders require as long as a year. Commercial lenders will have different policies but it's always good to plan on a 6 month seasoning period.
How confident are you in your rehab numbers and ARV? If you can legitimately get $400/month with only leaving $5k in the deal, that is solid. But that seems like a really low price on a 70k ARV property that only needs 20k of work.
Post: Do these numbers make sense? Is this worth my time?
- Posts 6
- Votes 0
Originally posted by @Joe Villeneuve:
What is the actual cash flow you predict...I don't care about what the ROI % is...that tells me nothing of importance.
$400/ month $4800 a year
Post: Do these numbers make sense? Is this worth my time?
- Posts 6
- Votes 0
$400/month after all expenses $4,800/year
Post: Luxury condos. How dumb are they?
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Like Robert Kiyosaki said, vacation homes are the number one worst investment. If you have the capital and you want it all while seeing the red flags you listed (which are 1 to many) then clearly you’re not here for advice. My thought is you WANT this and
DREAM of this and are financially set to do it…. So why not do it if you know what you’re getting into and it will make you happy.
Post: Do these numbers make sense? Is this worth my time?
- Posts 6
- Votes 0
Hi, I have a situation where I'm sure all of you have been at some point. I am currently looking at purchasing a fixer upper for BRRR. The property is being offered by a wholesaler at 27k I offered 24k and they said yes. I have the cash to purchase the property + closing costs BUT do not have the money on hand for the remodel portion. The property ARV based on comps is 65k-70k and monthly rental income about $850- $925. I need anywhere from 18k-20k to fix it up. After doing the math using the calculator I should sit at about 9.5-10% ROI.
I am not sure how to get the loan (HELOC) for the repairs since the lenders I've talked to suck. Another problem is the lender is saying that I need to wait 6 months to refinance?!? That means I'll be paying an interest only loan for 6 months before refi. Can anyone point me in the right direction? Or give me tips. Tell me if this is not worth my time. I'd like to get my 70% back with the refi which would be maybe $45,500 leaving me with about 5k of my own $ in the property after paying closing costs & appraisal.
Ask me ?s if I missed anything please, newbie here trying to soak up as much as possible!