All Forum Posts by: Byron Kearns

hi @Byron Kearns,

Before getting finding your target price, sounds like you may have more due diligence regarding repairs (age/ condition HVAC, plumbing, basement/foundation, windows, garage, exterior foundation, interior condition in general, selling price of house/condition in that area).  Certainly can find these during inspection and have a backout clause if it’s too much but it’s good to have an general idea up front.

Regarding a buy/hold, the biggest X factor is determining a rent range in that area; if it’s $200 less than you thought, it may go from positive cash flow to negative.  Talk to some 3 or 4 PM’s about the zip code or general area and get their thoughts.  Check main rental sites: Zillow Rentals (for house rentals, not apartments), Realtor.com, possibly craigslist. Make sure the numbers work with everything built in (private/traditional money rate; hedge for vacancy/repairs/etc; 

Hope this helps!

Why are you buying this property? Is it under valued and you are going to do a BRRRR? How much work, if any, will be needed to make it rentable? If renting, how much can you get in rent?

 You want to put the information and numbers into a ONE page presentation - not fancy - just facts - and then show it to every friend, family member, dentist, doctor and businessman that will talk to you. Show them how much THEY will make. Determine if you want to borrow their money and for how long and at what interest rate or determine if you want to Joint Venture and split the profits, they put up the money, you do all of the work.