All Forum Posts by: Brendan J.

John, if I'm guessing right, you probably used a mortgage calculator that included taxes and insurance resulting in your $581 number. Taxes and insurance are actually included in the 50% rule, and Brandon is correct, this looks to actually be $424 per month.

It's a 10CAP with almost $100 per door? It looks good on paper, but is $400 a market correct rent? How much does it need to get someone renting it tomorrow, etc?

Brandon, although there is cash flow, this deal is very thin.

Honestly, based on $220k it appears that they are asking too much per door. 6.5CAP? That's pretty pricey. Potentially $265 net cashflow is all?

I like the numbers much better at a $188K purchase price. That would get you to $400 in cash flow ($100 per door). If they won't budge off their $220k number, I'd walk. That's just my $0.02, hopefully some others might chime in.

Thanks Brandon, and I forgot to ask, what is the purchase price?

What are the current rents? And the terms of your financing?

No problem Shoor. I wasn't trying to be difficult or short, it's just that estimating rehab costs (and doing it incorrectly) is the quickest way for someone to lose money on a flip. If you can get good estimating rehab costs (the right way) you're not running much of a risk trying to buy low and sell high. I wish you well!

Thanks for posting Mark. How did you find your deal? Wholesaler? REO?

Art, please check out the Ultimate Beginners Guide here on the site, as well as the Podcasts. You'll find some great resources there and they will help outline the various avenues you can take in REI.

We are glad to have you and don't hesitate to reach out with more questions.

Shoor, most would tell you that closing / holding expenses combined are going to be close to 10% of the sales price. In regards to rehab costs, "quickly estimating" is probably not a wise idea. You're probably asking for a $/sf type figure, but these can be WAY off.

Check out J Scott's book on Estimating Rehab Costs (available on the BP site). It will walk you through the fundamentals and give you a much better idea than a $/sf number. Best of luck.

After highschool? Go to college, no question. Start investing in school after you've studied for a couple years and begin saving now. Without a college education, your W2 will never be where it needs to be to help you with financing, saving, etc.

Ben, welcome to BP, We are glad you're here and you'll find a ton of wisdom on wholesaling or REI in general. Be sure to check out the Ultimate Beginners Guide as well as the Podcasts (both have info on wholesaling). I wish you the best!

Ps, if you go back to your profile you'll find an orientation switcher to turn your avatar up-right,