All Forum Posts by: Darren Budahn

Look at an amortization schedule and you can have a decent approximation.

Sorry to hear about your situation. The house looks very nice. What is your break even number on the deal? Regardless, based on what you said, I would sell and get out of the property. It doesn’t sound like it would make a good rental. Your going to have to pay closing costs to refinance plus you aren’t going to cash flow on a monthly basis. Unfortunately this one didn’t work out but I would cut my losses and move on. Maybe see if original buyer is still interested??

The short answer on whether or not you should be your own GC is “it depends”. I think for most people it’s a mistake unless you really have a lot of time to devote to it. If it’s a small rehab you can try and manage it yourself, but if it’s a major rehab, I would look at finding a GC. Find a deal with enough of a spread that you can afford the GC. Most likely your time is better spent elsewhere.

I don’t see how this will work unless these houses need very little work. If you buy for 25k, I assume the houses need at least 5k worth of work, then you add in holding costs, closing costs, insurance, taxes, commissions, and I don’t see any much of a spread there. In addition, the more important point may be that where are these houses with a 40k ARV locates? If they are in an inner city, your potential owner occupant buyers are almost non existent. Therefore you would be looking to sell to an investor who isn’t going to want to pay retail. Your strategy could work using the BRRRR method if you buy at enough of a discount and have a lender willing to finance 40k houses. It’s a good way of building a rental portfolio but I don’t think it’s flipping in that price range makes sense. Good luck to you

Get an attorney and start evicting immediately

Try Waterstone Bank

I'd look for a local bank. I got 30 year amortization, with 10 year term, 5 year rate lock, at 4.5%. 80% LTV on a 400k commercial loan.

Don't use cheap paint. You will regret it. Get a contractor's account at Sherwin Williams

See what's common for your area. If it's a small multi family just build it into your rent like every other landlord. If it's a large apartment building then it's a whole different story. It may make sense to try and pass it off to tenants.

Try and find a partner who may be able to provide the funds. Or post the deal here on the BP Marketplace. If the deal is that good, the money should find you.