All Forum Posts by: Arden Ballard

Correct, and that's why I was so excited about it! I have a "negative" ROI, but no cashflow. I feel like I can massage this a bit further; not ready to give up on it yet.

Thanks @Greg Scott!

Yes, I zeroed those out as well. 

* 793 @ 152,000

@Greg Scott I'm using Zillow Mortgage App's Payment Calculator on iOS. Just re-ran it and got $782 P&I again.

@Greg Scott @Joe Scaparra I agreed with you initially. the numbers didn't make any sense. but even with the 50% rule with expected rent (1700/2 =850 - expected P&I <793> = $57) 

Taxes about $100/mo. insurance same. I figured 5% for vacancy and repairs, 10% CapEx, 8% PM.

My rate from my bank is 4.75 fixed with 80% LTV on the ARV. Buying cash up front.

The neighborhood on the other side of the repair shop is quaint and pleasant, with well kept yards and long-term tenants. An older, more rooted population. Those streets are actually patrolled by the hospital security team! This street certainly isn't "bad", but unkept. 

Sounds like I need to move/invest in Atlanta! Hard pill to swallow considering I'm a Saints fan :)  Best of luck @Michelle Mercer

I need to sign up for "pro" so I can share the numbers, but I'll give a cliffs notes version here until I do. 

I'm bummed. I planned my afternoon around seeing this property, saw the value numbers-wise, but my wife brought up a potentially fatal flaw with the deal. 

Here it is:

 2/1 Duplex (with a potential garage-turned-efficiency in the back) Shotgun style home 1/4 mile from the largest hospital in the area. I've always wanted to own RE here. I work for the hospital, and I know I could count on tons of tenants being available. 

HUD property, asking 89,000. It needs 60k in work. I had my guys look it over, and sales comps would put me about 190k arv, and renting at 850/side. I'd pay cash up front and refi with my private bank on the back end (~155k at 4.75%. They do 80% LTV)

So I said "let's offer 80k"

Then I saw that, while I'd get more than my investment back on refi, the property cash flows about $23 bucks a month. ouch. 

So THEN I saw that the asking price has dipped a few times, and the bank has owned it for a while... so I started playing with the numbers. 

I'm excited again. this MAY work... 

Meanwhile, my wife (the logical person in this business) still is like "no way" shouldn't do it. 

I've already showed her the pics of the property and the surrounding area. She knows it well too. 

She looks at me and says, Arden, if this house was two blocks over, it'd be a no-brainer. but this house sits across the street from a sleezy auto repair shop. it's down the street from another auto repair shop. No nurse in their right mind would want to come home from a shift and walk past those properties. 

So even my idea of offering 30k for the property was shot down. darn. 

I'm posting all this to 1) decompress and 2) see if you would have walked away too? At what point would you look back at this deal and say "let's do it"?

Look up Heather Brooks at 5th District Bank. 5D is local to the NOLA area and is a portfolio lender. I have my original mortgage with them which gave me my "in" for investment loans, but their offerings are worth trying to get in. Great people. 

Good luck! 

I'll be attending the northshore REIA luncheon tomorrow! I'm in your boat as well, @Mason Mccullough

Hope to run into you one day

@Andrew Angerer I need some deals! My wife and I just started. We inherited a SFH and own it free and clear; renters should be moving in soon. Between that and cash, we're looking to heloc and burrr some multi family homes. When I first started my education on BP and reading books, I did NOT think it'd be this hard to find a deal where the numbers worked. But onwards and upwards!

I'm going to a property and a REIA luncheon on Tuesday, and I'm hoping to find a good PM and agent.