All Forum Posts by: Account Closed

Thanks for the answers everyone. I saw the property today and...disaster. Way overpriced and way too much work for a house hack for now. 

Yes @Shawn Mcenteer we initially tend to owner occupy one unit, but after about 1-2 years we'll move on and continue to rent both units. That being said, the BP calculator and situation in question is if we were renting out both. 

@Jonathan Greene ARV, repair, and rent numbers are based on comps in the area. It's in Waldwick, NJ near the commuter train station.

This is where I'm kind of lost. The calc. doesn't allow me to finance the rehab, which the HML will cover 100% through draws.

Additionally, the max loan the HML will do is 70% LT ARV. So, this is where I'm thinking the numbers don't work because then that means $575k ARV then 70% is $402k. Then subtract $75k for the rehab fi. and I'm left with $327k for the house purchase, not the $450k I put in the calculator...

Either way, it looks like it doesn't work. Most duplexes in this area are in this price range though. 

So, there is a duplex for sale near me that is listed for $485k. 100 years old and need of updating and rehab. I'm estimating about $75k in repairs (which will be financed through the HML). I'd use a HML and then cash out refi. I'm initially looking to house hack but these rent roll numbers are assuming once I move out and keep the property. I feel like something is off with the numbers using the Bigger Pockets Calc.

Can someone give me advice on this deal? Thanks so much. 

Jesse 

@Account Closed I'll be DM'ing you about the meetup. Looking to network with others in the area. 

Family members seem to think HML is incredibly risky and to avoid. Is there something I'm missing, or is this a good option?

Both @Bruce Woodruff and @Jonathan Greene made real, hard points I was expecting to hear. 

So, if an equity partner is good for someone with something to bring to the table, would a Hard Money Lender be the way to go for someone with less that's eager to get their feet running? Because, HML's seem more concerned about the property and deal compared to the person (me).

Do you think finding a solid deal on a site like Zillow is sufficient or do most equity partners only consider off market? 

First meetup for me. Intrigued to meet others in the area (virtually).