All Forum Posts by: Josue Guerrero

@Rex T. 

Oh yeah, on paper most deals sound pretty darn great! They only start looking worse and worse when you start getting indepth looks at the home, and actual estimates for repairs and other miscellaneous expenses that you did not see coming! 

I should mention though that the asking price for the home is $239,000. The tax value of the home is about $236,000. I would only plan on purchasing the home for $191,200 at the absolute most which is about 80% of its value. That also means that if I were to even offer, I'd offer a bit lower than that since I'm sure they'd love to negotiate to work the price up a bit. Do you believe that 191,200 is still not a good enough mark-down for a 4-Plex with an ARV of about 240,000?

@Ryan Dossey 

Yeah, most definitely! You're right anything else that may be wrong with the home, (and there probably is a bunch that the pictures aren't telling me about), is going to shoot up that repair cost! 

The only thing stopping me from reworking the numbers in the analysis right now is that I'm not sure what else is going to be necessary. I'd have to get an actual firsthand look at the property in order to figure out, and budget much more accurately.

@Logan Allec 

Ah yes, you're absolutely right! I went back and made the necessary corrections! Thanks for bringing that up.

       https://www.biggerpockets.com/calculators/shared/208862/4c66867c-645d-4e10-91a1-9e260a9c99ea    

@Elizabeth Colegrove

Ah, that makes perfect sense. I've been to California once or twice and I remember the housing market being fairly expensive (At least when you compare it to NC) If I'm remembering correctly, I saw a house on the outskirts of San Diego that was worth about triple what the same home would have been worth where I'm at! That being said, I've never been to Hanford so I wouldn't know if the prices there are more similar to San Diego or to where I'm at! 

Perhaps I should get in touch with the local police department and ask about any information on the neighborhood? 

Hi @Logan Allec

I based the math off of using a conventional loan to purchase the property. I would not be owner-occupying one of the units if I did it this way. I would instead rent out all 4 units. 

My end game goal for this multi-family would be to buy and hold it and use the monthly cash-flow to fund other investments. Also, if I can get it re-appraised after all the repair work is taken care of and it ends up being worth the $240,000 that I estimated, I would take out a HELOC on the equity that I have to use towards a down payment for another investment property

Hey @Ryan Dossey 

My repair estimates are based off of the pictures of the home. I guesstimated about 5k for maybe some minor paint jobs or cosmetic repairs. Of course, this number more than likely will be higher if I take a closer look at the property with an inspector/contractor. Once I can get a better view of the home and a better estimate of repair work, I'll update my numbers!

Hi @Elizabeth Colegrove

I'm not too sure how to figure out if the neighborhood is A, B, C or D. How would I go about finding that information out? Honestly, I'm not 100% sure if it would appeal to college kids, although it is close to the college within driving distance, it may be tough to walk to and from the school. That being said, I would not necessarily mind renting to college students. With proper screening and hefty security deposits, it should minimize my risk of things going sour, but then again, anything can happen! The building itself is 30 years old. I haven't gone to visit it in person so I can't say for sure if any major repair work is needed. I do plan on bringing someone along if it warrants a further look. 

Whoa, I just now realized that I accidently included a $198 per month misc fee. This was originally used to calculate PMI when I had originally done the analysis as an FHA insured 3.5% down payment loan. I corrected it and it actually brings the cash flow per month up to $1000+

Here is the updated link

       https://www.biggerpockets.com/calculators/shared/208862/1c428597-7622-474a-b384-c4c87815ce46    

So I found this brick 4-plex in Raleigh today. It is about 5 or 6 minutes away from a major university (NC State) and also a couple of minutes away from downtown.  

Judging from the photos of the interior it seems to be in pretty good condition and would only require minor cosmetic work on it, of course I would make sure to visit it with an inspector/contractor to make sure it's actually as good as it looks.

They are asking 239,000 dollars for it, but I would only offer at most $191,200 for it. Judging from a few slightly similar comps, it should have an After Repair Value of $240,000, maybe a little bit more. Should also mention that it's been on homes.com and realtor.com for 130+ days.

This is the link to the deal analysis that I performed on it. Please feel free to correct anything I may have neglected! Is it a good deal and worth a closer look into it? 

 https://www.biggerpockets.com/calculators/shared/208862/0468f20b-bfbe-429e-b5be-719018f26607

As an investor who is starting out, what would be the pros and cons of having a real estate license. In other words, what benefits would having a license offer an investor? What are some of the detriments of having one? Is it even worth it, if you have no plans on working for a brokerage firm?