All Forum Posts by: Joseph M'Mwirichia

Nice work!

Hey Andres! I too have looked at that 20 unit multiple times, pencils out good but am not convinced about the location. 

Based on these are numbers, the deal is razor thin. You are at 64K all in, leaving only 10K. Even with the 'extra 9K' buffer you are starting with <20k spread.

A few things, what if your appraised value is off 10%, your market softens either increasing hold time or squeezes your sale price 5%, those rehab maybes become definite and eat up some of that 9k, how does this deal look now?

I think one goes into a deal thinking the worst case scenario is that they profit 10-15k, but never that being the best case scenario. This would be a pass for me.

That's awesome and speaks to the true value of platforms such as these. As for the data, as a fellow scientist, I concur 💯

BE GREAT!

Welcome Gabriela! You are in the right place. Also here's a local forum, you can select Omaha in the sub forum to dial it even further and start connecting some local players. BE GREAT!

https://www.biggerpockets.com/...

Welcome Vanessa and congrats on your getting your rental ready. You are in DALLAS, will not be difficult at all finding a local REI meet up or group and start connecting.

Also, check out this Dallas specific forum. Lots of active peeps waiting on you to connect 😉

https://www.biggerpockets.com/...

Most HML have 5 key criteria, how much of the purchase price they will lend to (LTV), how much of the rehab budget, how much of the total cost of the project (purchase + rehab; LTC), maximum limit to after repair value (%ARV), threshold of actual loan amount (eg. $50,000-5M)

In this scenario, your only concern is the LTV since the rehab money will come from somewhere else. With the purchase price that low, this particular HML will not work. Find one with a lower lending limit.

As for the question of down payment dropping the actual loan balance below lending limits, that shouldn't matter but is a dependent the HML. They all do things differently.

Insurance, or property insurance is not PMI. PMI will be determined by the lender depending on what FHA loan program you use.

Maybe...run through all your numbers, insurance, taxes, maintenance, capital expenses(which the hvac would fall under), management, debt service...and what your desired monthly cashflow target is. Do you still like the deal? At what price? BE GREAT!

Kudos Theodore...this helped me grasp all that goes into mixed use value add.