All Forum Posts by: Isaac El

Found a house through cold calling, found the house by driving for dollars and very distressed.  Turns out the owner of the house passed away (has no wife) and has two adult children.  The one I was able to find contact information from says "My brother owns the property and convinced my father to give it to him, I don't own any part of it" However doesn't each child own 50% of the property? Can I buy her share?  

I have been trying to BRRRR locally and the prices are very high, so I have been seriously looking out of state. Particularly Cleveland, OH. My question is whats the best way to find comps so you know how much house is worth after you renovate? What tips do you have for out of state BRRRR? is it even worth it to do out of state duplexes or only larger properties?

@Stephanie P.  Im on board with you, so with this one BRFR (Buy Rehab Flip Repeat) ;) 

Thank you for all the awesome feedback!

ok update, I used the bigger pockets mortgage calculator (I didn't even know there was a mortgage calculator here! still becoming familiar with the site) 

I used the following numbers:

$575,000 loan 

Taxes $5,200

Insurance $2,400

Interest Rate 5% 

Loan Term 30 Years

Monthly mortgage payment comes  to $3,720.05

So this deal isnt really worth it as a BRRRR - will keep it fix and flip, but now that I learned numbers and with all your help, for my next one I will be looking at a 3 or 4 fam. Cost per door comes out less, and looks like BRRRR will work out better.

@Jerry Padilla  Hi Jerry, no I will not be living there, only an investment property.

@Stephanie P. got it - I will use google, what I have been working on is an excel sheet where I pull eveyrthing together, and tried to calculate the mortgage there, but something is off, so I will use google going forward. What is your opinion, to BRRRR this or fix and flip?

@Stephanie P. ok so its becoming obvious I am calculating my mortgage payment the wrong way.  Can you show me the math you used to get a $2,977/monthly payment? 

@John Teachout  Hi John, I really appreciate that, so $1,711.64/mont being interest only, $3,943.82 could be right including principle

A simple interest calculation is PxR/T (the principle of 70% of $700,000.00 is .7 x $700,000 = $490,000 x .0435=$20,825 per year. Divide that by 365 days to get your daily rate of $57.05479 and multiply that by 30 days (month) to get $1,711.64. That's the interest only. To amortize the loan you'll need to know the payback period.

@Mikael Persson Hi Mikael, it could be that I am making an error, and I really don't know - thats why I am turning to bigger pockets, I made my own mortgage calculator in excel and I am using that.  Can I email it to you to take a look at it? I am getting a payment for $3,943.82 at 4.25%

@Alex S. got it, thank you