All Forum Posts by: Donnell Durden

So Im currently listening to episode #211 and Brandon keeps saying "Do your own numbers"

I'm a newb but I like to think I'm kinda smart so below I list all the number I can think to "do" in order to

calculate a deal. help me out if I miss anything.

Cost of home

Available cash to put down

Amount borrowed

Mortgage payment

Mortgage interest (the cost of the loan)

Insurance

Taxes

Cap ex (monthly % saved for big ticket items)

After repair value (arv)

Appraisal amount?

Near by homes costs?

Rental income

Misc income

To my understanding you simply add all of these numbers together against each other.

If you can manage to get the property at or below 70% of its value and the expenses are lower than the income then you are in good shape.

That coupled with how much of your own cash is involved to know how much you'll need to extend yourself.

What am I missing here? This seems too easy 

Dope on a rope

I believe he would start by getting his property appraised. The bank would look at that along with his financials to determine the amount he can refi and the terms of repayment. Also are his taxes delinquent? That would also be factored into the prices and most likely would need to be resolved prior to narrowing against the homes equity D

Bryan Hancock hit the nail on the head. I feel like every move must be intentional

Hey Bp My sister is the over of a 2 family. And just went through a bit of a nightmare. I need you guys to help me go back with the words of info and encouragement. 1. Upstairs downstairs 2 bedrooms each 2. Failed section 8 inspection 3. Fixed gutter and whatever else 4. Passed inspection 5. 2 tenants waiting (2 walk throughout each) 6. Leases signed Friday 7. Sunday - downstairs tenant complains about prior discussed on street parking. Driveway reserved for other unit 8. Sunday - downstairs tenants complains about stove being dirty 9. Sunday - upstairs tenants find mouse droppings under the stove (handyman handles it) 10. Downstairs tenant tells section 8 worker they want out. He tells them they are at the mercy of the 2 day old lease 11. Monday- Downstairs tenant claims to fall 12. Monday - emergency inspection (3rd in total) 13. Fails inspection (the same one that was just passed days earlier) 14. Section 8 deems the apartment unfit and tenants must go So now she loses this income. What are her options? Does she have to return the deposits? I need some good new to bring back to my sister. Thanks Guys.

Jeremy Pakalka thanks a lot. I was beginning to notice her ignore them once she couldn't find them listed. Would you be able to share tips on ways to find the owner and get in touch with them?

Hey Bp So I sent my info over to a mortgage broker and he said I'm a good candidate. A few hours later I get a call from an agent who says she recommended by one of the people who led me to the mortgage broker. She took me to see a house. It needs a full rehab so it may not fit what I'm looking for as I am trying to finance my first deal with a 203k loan. Whenever I'm in the my hometown (where I intend to invest in my first property) I go driving for dollars. I send her homes that are in semi war zones and multi family. She seems only interested in checking out the ones that are listed. In general if I send my agent a vacant property that's doesn't seem like it's for sale an I wasting my time? Should I be trying to find out who owns the property and asking if they are willing to sell? Do buyers agents do that or is that generally up to me, the would be investor? If that is my job shoot me over some tips. One thing I did catch on to was checking the local assessor website. But after that I don't really know what to do with the info. This it my first time having an agent in not all the way sure what their job includes. D

This seems pretty simple. She's in a win win win situation. When he say "pull out" he mean refinance the current loan. If your mother has equity in the current home then she can go to the bank and loan against that equity to get the 20% down payment on the new house. Her mortgage may go up a big because of the lost equity but she can make up the difference with the rental. She currently pays $800 and makes no income / cash flow Her mortgage may go up to $1100 if that But she will now be making $300 in passive income. Essentially being paid to live in a bigger place.

I feel like if you can buy at a price that you don't lose money in a worst case scenario and really vet your tenants and are confident you can rent the place out.. Go for it. At those prices your risk is pretty low.

Aaron Mazzrillo it's called real estate 😉