All Forum Posts by: Jaysen Medhurst

@Sarkis Gezalyan, where do you have roots or "boots on the ground" to help you? As a new investor you don't want to just pick a place and hope for the best.

@Rhonda Chapman, few things for you to take a look at:

1. I don't see any consideration of CapEx (7.5%), Management (10%), or utilities. Repairs are a little low, I figure 7.5%.
2. How did you determine your financing? 20 years at 5.75% with 15% down? I think you can do better than that.
3. You have $0 budgeted for initial repairs. That's not reasonable. There is ALWAYS something.
4. What if you could get this for ~$85k and put down 25%? If you're ARV is correct, you'd be sitting on some nice equity and be in place to reallocate it through a refi in the future.

Good luck!

Hi, @Sarkis Gezalyan, where are you looking? If it's a hot market, you won't find deals on the MLS. You'll have to try other strategies to land off-market deals.

@Michal Kolenda, tell your lawyer that you can't close until Jan 2. The buyer might buck, but considering he has a bird in the hand, I doubt it. 

@Luis Valdez, you want the LLC all set up before closing. The LLC will own the property, you'll personally guarantee the loan. Make sure you discuss this with your bank

Yes, tenants could potentially sue. An LLC protects you the other way, too. If you're in a car accident, the property in your LLC will be protected from someone suing you personally.

#imnotalawyer

@William Kwong

U.S. Alliance does 90%

Aspire Federal does 90%

Garden Savings does 100%

@Hao Dinh, usually that's something your GC will take care of. If you're managing the construction yourself, it's on you.

Hi @Christina Luton, I'm a bit conservative, but I figure 10% vacancy, 7.5% each for Repairs and CapEx. Any other utilities to include? I see garbage there.

Do you plan to refi after it's rented out? That will be ~$425/month, bringing your CF to $200, which isn't bad. Gives you a cash-on-cash return of ~25-27%.

@Drew Slew, find an experienced contractor / developer to partner on this deal. There are too many ins-and-outs of a deal like this. Run those numbers hard and be very conservative. It's going to take longer than you think, with more red tape. The numbers might just not work. 

To make 16% profit on a $1.5MM sale you'll have to get it all done (including holding costs) for $385K. That's $128/sq foot build price. No way you'll be able to build a house for that cost (including demo) and hit the price point you need to.

@Shyam Panchal. Have you considered offering to sell to the downstairs tenant? Maybe as a lease option?

One of your units is illegal (assume the basement) and you don't want to play with fire there.