All Forum Posts by: Jay Dewberry

Perhaps see if the owner has a local friend/relative/business associate that can show you the property. If, for some reason, you have to make a blind bid, just make sure to have contingencies in your contract that will allow for you and/or your team to inspect the property and review and adjust final bids accordingly. While there, you can take any additional photos needed for end buyer and/or revisit the property with him/her to walk the property. 

What kind of financing terms are you considering? Either way, IMO the market will support (or disprove) purchase price. Depending on recent sales comps and rent comps, you can use these as negotiating tactics to justify a lower price point. Make sure to subtract any and all rehab issues...especially the roof. Get a contractor in there asap to check the integrity of the roof and subtract from purchase price. No sense in walking into an investment with possible deferred maintenance issues that may cost you more in the long run. 

As far as rent increases, again use local rent comps for your market. Even go as far as checking with local property management companies. Many times they will be aware of market rent fluctuations. If it is time for an increase, use small increments (perhaps 10% per year) so as not to shock/anger tenants. 

When it comes to investment properties, it is very normal for a bank to want 20-25% down payment. Now a days, banks want investors to have some skin in the game to show that you are serious about a property. There are ways around this...such as a FHA loan or if it needs rehab work, FHA has a 203k rehab loan. These only require 3.5% down payment, however you may have to live in one of the units for a year to satisfy loan guidelines. Just thoughts though...Good Luck.

Welcome to BP Jiorphia. Take advantage of all that Bigger Pockets has to offer...from the BP Calculators, to the Marketplace for deals, to the webinars, blogs, and forums to learn. Good Luck out there.

Analyze...Analyze...Analyze. No matter what properties you look at, the numbers have to work depending on the exit strategy you have...and you definitely want to have an exit strategy. Using the BP Calculators is a great way to practice running numbers to determine if a particular property is a deal or not. Personally, I think Multi-Family units are a great way to generate cash-flow. You could find a quad-plex, live in one, and have your tenants pay your mortgage to the point you live there for free(House Hacking). Plus your vacancy rate will be lower than that of a SFH. When a SFH is occupied, that's great...but when it's vacant, that's not so great. Where as if a multi-family looses one tenant, you still have other tenants to offset the vacancy rates. Just thoughts...Good Luck.

Hi Tom. I was wondering if you could clarify what you're trying to assess in regards to the ARV? Perhaps you can elaborate. Nevertheless, when it comes to the After Repair Value, it will be determined by recent sales in your market. Like for like properties will be compared in order to determine the likely selling price point that the market will pay for a particular property that has been rehabbed to a move-in/like new status.

Try this thread. Plenty of options here.

https://www.biggerpockets.com/pro

Check the address on the county tax commissioners website. If there was no transfer with the county clerks office, perhaps check with the probate courts to see if there has been any action taken with relatives. If a third party is managing it, they had to get the authority either through wills/trusts(probate court) or legal action (county tax commissioner).

In my opinion, the first steps I would take would be to try and get the property under contract. I would make sure I have my contingencies just in case. I would shop my deal as a wholesale or JV deal on B.P. Marketplace, at local REIA meetings, Craigslist, ect. I would check with hard money lenders to see about there terms on fix/flip to landlord loans (just in case). Many times if the ARV is high enough, it "may" cover close to 100% of the needed funds. Check on other loan programs such as FHA's 203k rehab loan program. Just thoughts. Good Luck.

What "teach" would you be referring to? The 70% ARV model should be considered a max offer price. This does not include deductions for you acquisitions costs, rehab estimates, and profit. What does the owner initially want for the property? Have you had a chance to run comps on the neighborhood and/or get some estimates for rehab? You can also use the BP Fix and Flip Analysis Calculator to help.