All Forum Posts by: Jay Dewberry

I ran your numbers this way with a  20% downpay:

Purchase Price: $120,000.00
Purchase Closing Costs: $2,000.00
Estimated Repairs: $5,000.00
Total Project Cost: $127,000.00
After Repair Value: $130,000.00

Down Payment: $24,000.00
Loan Amount: $96,000.00
Loan Points: $0.00
Loan Fees:
Amortized Over: 30 years
Loan Interest Rate: 5.000%
Monthly P&I: $515.35

Total Cash Needed
By Borrower: $31,000.00

Monthly Income:$1,400.00
Monthly Expenses:$1,349.35
Monthly Cashflow:$50.65
Vacancy: $70.00
Repairs: $140.00
CapEx: $140.00
HOA: $19.00
Insurance: $75.00
Management: $140.00
P&I: $515.35
Property Taxes: $250.00

Based on these numbers, it looks as though you would break even for the most part. So it would depend on your long term goals and the market. Perhaps play with some numbers.

Hmmm...I suppose that it would depend on how much you wanted to refi out overall. Your purchase price would be the actual current owed plus the 50K for the ex. However if any repairs are needed, would it be easier to refi out the needed funds? So purchase price would lets say $150K (original + exwife) plus repairs (say $10K) would make your purchase price $160K. ARV $216K. Didn't see taxes though. Closing costs $0. Repair $0(as you will have cash). Loan amount...same as purchase price. HOA has its own section. 10% for repairs&main, cap ex, and PropMan(unless self managing). But I think the issue may be the new loan rate. Anything over 4% I think may hurt cashflow. But perhaps play with some numbers to see...Just thoughts as I'm no expert.

Oh...perhaps the ex can hold a $25K note for a few years and give her $25K as a down payment.

Sounds like a solid deal, however it sounds as though the owner and/or PM didn't do a thorough enough background and/or criminal check or are not enforcing cleanliness clauses/inspections. My concern would be after you've put 15k in repairs in, tenants will just make things worst. 

Firstly, congrats. Make sure to run the numbers and have that inspection contingency in the contract. I wouldn't want you get the place and find out some hidden repairs needed that would cost you in the long run. Good Luck.

What's market price for the property? Perhaps you can get them to budge using the needed repairs and comps as a justification. Also make sure to plan for the balloon in 3 years. It will come around before you know it.

I would tend to agree with @Matthew Cole on this one. But that would depend on your long term goals. However you're getting around $60/door which is still positive cashflow. Try checking recent sales of triplexes in the area for ARV numbers. However a better way would be to have an agent run a CMA (Comparative Market Analysis) for your area. If all goes well, perhaps there's some good equity in the property.

How many units on your MFH? Also, will you be managing the property yourself? May want to factor that in as well. What's the ARV compared to the purchase price plus anticipated repairs? Down Payment? Perhaps the financing terms can be stretched out to allow for higher monthly cashflow per door. Just thoughts.

Hi Alexis. Perhaps check the FilePlace. There should be a few there. Also, if you wanted one from an investor friendly attorney, try Halperin Lyman. They will be able to assist you as well.

I would have to agree with @Chris Anderson. This house may be better as a flip instead of a rental. You may be able to still put 15K+ in your pocket at the end of the day. I would suggest taking a look at some Hard Money Loan videos to really see the breakdown of fees/terms you're up against. Perhaps call a HML or schedule to drop by and sit down with them to get a feel for what you'll need. Make sure to allow more than 3-6 months just in case.

Youtube the keywords (listsource absentee owners). There are several tutorials for this. Just make sure to sort by street and put the street name in. As far as Skip Tracing, since we live in a digital world now, many times we leave a digital footprint of our activities/whereabouts. Skip tracing is the act of locating a person by means of his/her personal or business activity. It could vary from relatives info, historical addresses, social media activity, past phone/email addresses, ect. There are companies that offer this service.