All Forum Posts by: Dennis Soto

Hello @Gerardo R Gonzalez. An FHA loan can definitely help you get started, but as @Snehann Kapnadak said only if you are willing to live on the property for a year as it is an FHA requirement. After a year you can probably refinance to  conventional loan.

Personal experience, a contractor, or an experienced Realtor are really the only way to estimate rehab cost and ARV. However, knowing how much work the property requires can give you a general number to gauge whether or not the property is worth bringing a contractor in for an estimate. The last thing you want to do is waste their time on properties your not interested in buying. My general rule of thumb (not very accurate) is I calculate $10,000 for each major project (new electrical, new plumbing, new flooring, etc...). This figure will be affected by many variables (area, finishes, sqft, etc) but its just an ballpark figure and I adjust it accordingly. If the property cash flows well based on my rough estimate, then I take the next steps to determine closer estimates.

This may not work for everyone, but with limited experience, it works for me. Do I miss out on potential deals? I'm sure I do; but experience comes from doing.

@Vickiana Ortega I generally do most of my own work (depending on the project), but I'll keep you in mind if I come across anyone.

@Vickiana Ortega

@Vickiana Ortega is the handyman for a position within your company or just for some sporadic work? What type of project(s) do you need done?

@Jon Reed I feel like I already knew the answer to the question but was hoping for a way to do it on my own. Thank you for the reiteration. 

@Vickiana Ortega I am a new investor in your area and have been on the forums about two weeks now. I currently have two properties (one in Plainfield and another in Middlesex) and I'm currently working on acquiring my 3rd property. I'm probably not someone with a lot of answers, but i'm willing to help where I can. I've heard RE Investor meet-ups are a good way to learn and network. As @Jonathan Greene stated his company host a Zoom meet-up that tonight will be my first experience.
@Vickiana Ortega keep me posted if you learn of any local meet-ups and I will do the same. 

A few years back I made a couple of good real estate investments that have given me the flexibility to access cash and build my portfolio with some other investments. I've been reading, researching, and listening to podcast, trying to get as informed as possible. I've been running the numbers on properties, but always hit a wall in the same area.

The last thing I want is to waste a contractor or a realtors time so I am looking for an efficient way to vet these properties to only call upon the contractor and/or realtor for actual possibilities.

Question: Is there a way to estimate the Rehab cost and what the ARV will be without a contractor walking the property or a realtor running comps? I know I won't be able to estimate a true figure but what can I do to get a ballpark number.

@Fred Cannon I don't know if I'll be able to accomplish that as my interest rate is already at 4.75%. Definetly something I'll keep in mind though. Thanks for the tip.

@Justin B. That makes a lot of sense. Without running the numbers I already know it would take me well over 10 years to cash flow what I would make by selling. I'm going to run those numbers anyway just to see the difference. In addition, I'm running the numbers to see how much I can HELOC and still cash flow and maybe go that route instead. Thanks for you insight.

@Michael S. Thank you for that explanation. That sounds like the more attractive option than the Refi. A HELOC would give me the opportunity to continue cash flowing while I find the deal that will fit the numbers to continue or better my cash flow rate as @Theresa Harris explained. With the Refi I would be losing potential cash flow until I find the deal.

@Brian Gerlach that sounds like a very good option. How long does the process take to withdrawal the funds? In other words, if I found a good deal I needed to move fast on, how long would it take to get the funds?