All Forum Posts by: Daniela Craig

Hey BP fam, I’m working on get my first deal and this is what I’ve run into. Is 65% x arv - repairs, a good estimate to value a a multifamily rental property ? 

I got a call from a motivated seller/ seasoned landlord he has multiple properties with 100% equity. He asked for an offer right off the bat. He said go check out the property and give him a price. So i go check out the property next day . The property was a 4plex and built in the 1920s, and I didn't go inside but just from the outside it was a rough property so i gave him a range on what my offer would be depending on repairs. I estimated a full gut to be safe. I did the (65%x arv - repairs) formula and he was pissed. He said I need to learn how to value properties better or I’m not going to get a deal from anyone.

So I’m just wondering if Im takIng the rIght approach on preparing my offer price. is 65% too low , am I over budgeting in repairs, or was my offer fair? 

I'm not flipping or wholesaling. Just trying to get a rental property using the BRRR strategy.

Hey BP fam, I’m working on get my first deal and this is what I’ve run into. Is 65% x arv - repairs, a good estimate to value a a multifamily rental property ? 

I got a call from a motivated seller/ seasoned landlord he has multiple properties with 100% equity. He asked for an offer right off the bat. He said go check out the property and give him a price. So i go check out the property next day . The property was a 4plex and built in the 1920s, and I didn't go inside but just from the outside it was a rough property so i gave him a range on what my offer would be depending on repairs. I estimated a full gut to be safe. I did the (65%x arv - repairs) formula and he was pissed. He said I need to learn how to value properties better or I’m not going to get a deal from anyone.

So I’m just wondering if Im takIng the rIght approach on preparing my offer price. is 65% too low , am I over budgeting in repairs, or was my offer fair? 

I'm not flipping or wholesaling. Just trying to get a rental property using the BRRR strategy.

Hey BP fam, I’m working on get my first deal and this is what I’ve run into. Is 65% x arv - repairs, a good estimate to value a a multifamily rental property ? I got a call from a motivated seller/ seasoned landlord he has multiple properties with 100% equity. He asked for an offer right off the bat. He said go check out the property and give him a price. So i go check out the property next day . The property was a 4plex and built in the 1920s, and I didnt go inside but just from the outside it was a rough property so i gave him a range on what my offer would be depending on repairs. I estimated a full gut to be safe. I did the (65%x arv - repairs) formula and he was pissed. He said I need to learn how to value properties better or I’m not going to get a deal from anyone. So I’m just wondering if Im takIng the rIght approach on preparing my offer price. is 65% too low , am I over budgeting in repairs, or was my offer fair? I’m not flipping or wholesaling. Just trying to get a rental property using the BRRR strategy.

@Ciro Affronti Thank You

Hey thanks Ryan the comps approved of the deal and i just scheduled my inspection!

Thanks Rod, I appreciate it !

Hi Everyone, 

I just joined BP about a month ago and started researching REI around the same time. I'm 21 years old and so far BP, some books and youtube have been my main resources for information. I've decided to place my focus on Rental properties and now I'm at my first Deal, and i need some help.

Im Purchasing a 4 bed 2 bath 1376 sqft SFH in the heart of Tempe,AZ less than 2 miles away from Arizona State(college town) for 195K. The median Sales price in Tempe is 242k and I'm getting the house at a 20% discount. So i feel like I'm getting a deal but on realtor.com & Zillow it says the home is worth 171k.

I haven't got the appraisal or inspection done yet as the offer was just accepted today. But i ran the comps and the pricing is fair but the zestimate & Realtor estimate on the house is psyching me out and I'm nervous about the deal. I feel like i shouldn't be worried about the estimate because my main priority is cash flow. Im getting a 25% cash on cash ROI. So my question is... is it still a deal even though they say the house is worth 171k? Also do you have any tips or advice as i go through this 10 day inspection process?

Thanks

Daniela