All Forum Posts by: Brian Stieler

Hey Peter, great idea. I'll try stopping by this afternoon. 👍

Welcome Monique H. Great to hear you're making a commitment to REI. What helped me get out of the books were meetup groups. I went to as many as I could find. It was the networking from those groups that got my foot in the door. Let us know if you have any questions.

Hey Randy. Thanks for the info. I've sent you a colleague request.

I recently listened to the latest BP podcast with Grand Cardone. He spoke a lot about the $800-$1200 rental market and how much demand there is for it. Personally, I wouldn't see +$150/m as being a deal breaker, but perhaps your target market does.

Also, my property manager calls this upcoming time of year the "renter black hole". Could you try taking new photos, add new marketing channels, or better emphasize the benefits of your property in the listing?

Good luck

Hey @Bryan Sandera

Myself and a couple other investors I know work with Lifecycle Property Managment. I've been very happy with their services, and they keep my properties in great shape. Let me know if you have any questions. I'm happy to chat about my experience.

http://lifecyclepm.com/about/

@Sebastian Marroquin Thank you very much for the detailed response. I took plenty of action items from it. This is probably the 14th lead that I've tried estimating, and every time I learn some new thing to account for. It really does seem like the best way to learn how this is done correctly and profitably. 

@John Leavelle I have checked the history, and it last sold in 2003 for $48k. I'm going to try offering $10k and see what happens. I'll keep you updated.

@Andrew Johnson Great question. I've chatted with this particular seller a couple of times, and have seen some of his other houses. From what I can gather he took on several projects at once and didn't have the time or money to rehab them. This one has been sitting idle for 6 years as he focused on his other houses. 

We have not done an official electrical or plumbing inspection. It looks like new wiring was run through the house, and I would imagine some work would need to be done to get that completed. Plumbing is just an unknown at this time.

Thank you for the reply @John Leavelle

Great catches:

Holding costs from HELOC = 6% or $275/m

Closing costs = $1500 for initial cash purchase + $6,500 refi closing costs

This property is in a B neighborhood and is the smallest on the block. 

I arrived at $235 cash flow by using my analysis spreadsheet:

Darren Budahn I would have to agree with you at $12k. I'm going to see what kind of magic I can do to get a low purchase price, but I don't believe he's that motivated to sell. Good catch on the water heater. I'll put that at $1500, but will keep $30k as the full cost of rehab.

I've found a seller looking to unload a flip project they didn't get around to finishing. I'm looking at it as a BRRRR project, however I've included some estimates that would leave some of my money in it. Would you mind checking my numbers for me? Let me know if there's anything else you'd like to see.

2bd, 1ba, SFH, ~850sqft, 

• Asking price $35,000
• Potential monthly rent: ~$1100
• Mgmt 10%, Vac 8%, Maint 10%, Resv 5% = $235/m cashflow

Total Rehab estimate: ~$30,000

Property is currently gutted. No kitchen, no bathroom, some open-faced walls.

• Kitchen $10,000 (Tile floor, Appliances, Cabinetry, Sink, plumbing)
• Bathroom $5,000 (Tile floor, Drywall, Doors, Shower, Toilet, Cabinetry, plumbing)
• Carpet in two bedrooms (~400sqft) $750
• Finish walls $1000
• Furnace $5000
• Water heater $3500
• Remove chimney $3000
• Powerwash Exterior $500
• Potential Termite repair ??

What should be my highest and best cash offer price?

if Cash-out Refi at 70% ARV = $42k - $30k Rehab

• Offer with 0% of my money in ($0) = $12k
• Offer with 10% of my money in ($6k) = $18k

Cash-out Refi at 80% ARV = $48k - $30k Rehab

• Offer with 0% of my money in ($0) = $18k
• Offer with 10% of my money in ($6k) = $24k

Any thoughts? Need more info?