All Forum Posts by: Jairo Castaneda-Gomez

@James M. Yeah, reality has hit me a few times HARD on this deal. I understand the the owner occupant loan I’ve applied for so, no worries there. The fact that there are cash offers on such a deal is #s 1-2, the benefit they have in how fast they can close compared to me is #3, and I’ll get a big #4 today when I get the actual news that a cash offer was accepted over mine. (Hopefully not!!! But I’m just being realistic here)

BUT!!!! 

Through this I’ve gotten comfortable with the Rental Calculator, I’ve found ways to get public information, information from management companies on better more accurate numbers for utilities (mine were over, but I left it that way), created relationships with a broker/agents/other investors who now know me as a numbers guy, and those same people seem willing to continue to work with me reach my goal of owning my first investment property (whether or not i house hack it).

I’m pretty pumped about that. 

For now, just wish me luck and I’ll keep you guys posted on the outcome by the end of the day here! 

@Rodney Robinson

Thanks man! I will definitely be doing that. I will say that with how many properties I’ve analyzed already that rental calculator is just getting easier and easier to use. 

@Wayne Brooks 

I wouldn't be able to afford the extra costs having to give up my rates on my FHA loan would add. Can't risk it.

@Wayne Brooks What I don’t know just yet is what kind of lease the tenants have at the moment. I’m sure they’re on a month to moth, but I’ll find out hopefully tomorrow so I can make the necessary  decisions. This could end up being a deal breaker too.. (hopefully not!) I’ll have to wait and see. 

@Daniel Kong 

Yeah, the tenants will stay for a few months (or a bit longer), but it is officially my first purchase and when they move out I’ll be moving in. 

And yeah, it has the best numbers I’ve seen so far! I don’t think it would be a bad start for myself. 

@Justin R. 

Your post is much appreciated! Its my first offer, but damn have I been doing homework! It feel great to be at the point where I’m making an offer on an analyzed property I feel will be a deal. 

I do have a question for you though. If I go in making offers and more than one gets accepted.. what would happen then? How do you choose the best of the bunch and turn down the rest? 

*UPDATE*

Not that it was surprising, but there are two cash offers and another qualified offer aside from my own. Im gonna have to give this some thought.. The things is that I haven't seen a property with numbers this good at all. I've analyzed a good number of multifamily properties and they all come in way short.

At $238k PURCHASE PRICE + $6238 closing costs with 5% down at a 3.375 rate w/o changing anything else I'm showing $134.56MONTHLY CASHFLOW at 8.88%CASH ON CASH ROI.

That might be my highest offer.

@Brian Leigh Thanks man! I appreciate that! and i will do!

@Wayne Brooks 

Annual insurance expense provided was $670, but all will be verified to be sure the numbers aren't misleading during the 17 day contingency period. 

The 4%'s could definitely be low along with the 7% for management. I'll find out as I go for sure. What numbers would you use to analyze a property like this one?

@Daniel Kong 

I’m using the BiggerPockets Calculator. Maybe it’s 19% after fixed utilities? I’ll have to test that.