All Forum Posts by: Apsu Hamilton

 I looked at comps and used PPSF. I was conservative and made sure my ppsf was under all of my comps as well. And I adjusted for neighborhood amenities. Pricing in real estate comes down to the market, what a willing buyer will pay for a property and what a seller will list it as.

thanks for the feedback. the inflation of materials probably turned a $100k rehab into $135k

buying a property and rehabbing it for $10,000 doesn't really add any value also that's pretty much the cost of a good paint job in today's market. I agree with your point, about rehabbing it for a renter, but the nicer the property usually the more rent you can collect. I think you're also forgetting about the potential exterior rehab portion.

Looking to get some feedback on me and my partners BRRRR Deal. Were under contract on a duplex for $160,000 and the estimated rehab is $135,000. Were using a Hard Money lender. Rehab Timeline is about 1-2 months. ARV is around 420k on the low end I believe. Each unit is 3 beds 1 bath and about 2800 total sq ft. We plan to rent each unit for $1800/m and then refinance down the line. Thoughts?

It depends on the lender, but for traditional lenders yes

Also Flipper Force is a really good resource to use to analyze deals

Hey Melissa I'm a local agent and also an investor. For a BRRRR Strategy you typically want to look at these things: You already own the property so that knocks out the B. Youll want contracts to walk the property to give you an estimate of how much it will cost to renovate to be similar to the rental comps you received. You will also need to figure out where the money to renovate the property will come from. I usually like to add an additional 10-20% onto whatever number the contractor gives me because there are always unexpected expenses and you want to be prepared. Once you've renovated the home you'll want to do a cashout refinance on the property (lenders will typically get the renovated property appraised and give you up to 80% of the appraised value in a check and put a new mortgage on the home). a lender will also usually charge closing costs/points to refinance the property. Not sure how much you bought the property for or how you paid for it but you'll want to pay off any renovation costs, permitting costs, financing costs, and holding costs. when calculating your cash flow make sure you account for vacancies, taxes, maintenance, insurance, the NEW MORTGAGE, and other optional costs like utilities or property management. Youll want at least 20% equity in the home and $200 cash flow. Depending on how long the renovations may take and the ARV you may want to look at flipping it. But I can tell you the local market here is starting to move to a buyer's market which makes flips riskier.

Your local Agent,

Apsu Hamilton

Exp Realty