All Forum Posts by: Hardik Patel

@David Hollenberger.. after accounting for Cap ex, maintance n vacancy of total 20% of Rent.. deals seems to make sense with Cap Rate at about 8%. However, I concern about ROI. How mush Down Pay In the Deal. Assuming 20%. Deal would make more sense if you would refinance after rehab for 70% LTV for 160k. For ROI. Otherwise.. ROI is not good to buy the prop.

Thanks @Amanda G. That’s good idea. I will try that to see if I get any help that way.

@Linda Forrest.. I agree with all people saying. If you could calculate insurance, tax, maintance (5-10% rent), cap ex (10% rent), vacancy (5% rent) n other expances if any like (lawn, snow removal, trash, utility (if common)). You would not have positive cash-Flow for the property. And if any, it would be so low to spend this much money n risk on. Your money could drive more ROI in stock investment (which could be 8% a year on avg) than this specific deal if you calculate all of this number correctly.

What are some of the big no no or criteria to avoid or look for as caution (for costly maintance, rehab or management) in properties. Like I am avoiding condo prop for big mgmt fees and costly insurance. Also, I avoid flat roof, multi units with common HVAC, prop in flood zone, crime area, etc. as they are either too costly to fix that don’t worth investment of time n money or just can’t be fixed, period. Anything that comes mind to flip switch off for further analyzing that property or filter out before even begain to analyze? Thank you all in advance.

Hi All BiggerPocket Members, I am new to real estate investing. I got really exited to invest in real estate as buy n hold (specifically BRRRR) after reading several bigger pocket books n listening podcast. I have look couple property with real estate agent. One thing I have difficulty is estimating potential rehab cost estimation (as well as any big property issue that I should know of). I am planning bring local handyman with next time to examine property with me to get proper estimates. Was wondering how much should I pay? I am also considering to go to Home Depot or Lows to get familiar with costs of material by myself and also get contacts of various contractors or handymans from my area so that I can just quick give them a call later and find out potential cost by discribing situations. Also, wanted to know how you guys handle situation like this. Is there any other techniques that is more better vs another to examine repair/rehab cost while analyzing property. Hope to get lot of stories n ideas from you guys. Thanks you. It’s always fun to read stories n idea on this forum.