All Forum Posts by: DJ Porter

I really appreciate all of the comments. Very helpful, thanks.

I ran into a MFP for sale on the MLS. 78 units total. The list price is $4,900,000. But there is an assumable loan of $2,740,000 at 3.96%. I'm not sure how much longer the term is. This may sound crazy; If I bought the place would I be paying the total $4.9M or just the $2.74M? If I have to pay the whole amount then why offer the assumable loan?

From the article… "3) For those investors find other emerging markets outside SFH real estate or some hobbies because your going to have to just wait it out, like a bear hibernating in the winter." Any suggestion on these emerging markets, specifically in Seattle / Tacoma area? In just starting in REI. I could sell my own residence…buy a 4-plex to occupy and rent the rest. I'm getting the impression that's not great to do from this article.

I really appreciate all of the comments.

I've been searching for a while now and I've been finding widely varying rates from lenders. I want to get some flips funded but the rates, costs and fees are all over the place. What is typical? So I know which ones are way too far in left field and I should avoid.

Originally posted by @Ramon Jenkins:

congrats on taking action @DJ Porter and @Carson M.

Thank you.

Looking forward to getting this to go thru. Still need to find the cash.

Originally posted by @Josh Jacobsen:

DJ Porter Where in Gig Harbor is the house at?

It's on 91st Ave Ct NW. Purdy, if you're familiar.

Originally posted by @DJ Porter:

I will make an offer in the next 5 days.

So, I did it. My partner and I put in an offer on a home in Gig Harbor, WA.

It's a 1,648 sf 3 beds 2 bath rambler 2 Car, with a 704 sf 1 bed 1 bath ADU, all on ¾ of an acre.

We put an offer in at $184K. The comps in the area are selling between $134sf and $143sf, putting this property in the range of $312K - $336K ARV. The area coms are 37 DOM. Plus, there is newer home on a smaller lot with an ADU and 2 car garage that sold for $475K. Not shooting for that but nice to know.

It needs a lot of upgrading. My partner is a contractor that does construction for a large hedge firm in Seattle/Tacoma area. He estimates $55K in work needs to be done.

The comps aren't all remodeled and in the condition that we plan on bringing this property to. So we've got a good chance of selling at that higher range.

Using a rehab spread sheet from 123flip.com I came up with these numbers...

PURCHASE COSTS:
Purchase Price	($184,000.00)
Inspection(s)	$0.00 (partner is an inspector too)
Appraisal(s)	$0.00
Survey(s)	($275.00)
Lender Fees/Costs	($2,000.00)
Closing Costs	($1,000.00)
Other	$0.00
Total:	-$187,275.00
REHAB COSTS:
Total:	-$55,000.00
HOLDING COSTS:
Mortgage Payments	($1,840.00)
Property Taxes	($600.00)
Insurance	($300.00)
Utilities	($600.00)
Lawn Care	($150.00)
Other	$0.00
Total:	-$3,490.00
SELLING COSTS
Selling Price	$324,990.00
Purchase Commission	($11,040.00)
Selling Commission	($19,499.40)
Buyer Home Warranty	($500.00)
Buyer Termite Letter	($50.00)
Buyer's Closing Costs	($9,749.70)
Seller's Closing Costs	($200.00)
Total:	$283,950.90
PROFIT:	$38,185.90
Percentage of ARV:	74.61%

We haven't done an itemized repair list yet, the $55k is only an estimate. (he tends to estimate high (good for us)).

I split the sale price of $312K - $336K down the middle.

I know the 74.61% ARV is not ideal but what do you think?

We have a scenario where the purchase price would be financed, but not the rehab. So we need the rehab and/or down payment. It would obviously be best if we could do it all with one loan, because of additional fees and closing costs. I'm not sure if its possible.

Is this good enough to get someone to help finance?

Thoughts, advice, anything is greatly appreciated.

Disclosure:

My wife is a seasoned Realtor.

I am working on my licensing now, have been an assistant for 2 years.

Partner is an inspector and a licensed contractor.

I will make an offer in the next 5 days.

I'm digging into the dangerous buildings idea. Thanks.