All Forum Posts by: Kerry Smith

@Jonathan Avila is right, it all depends on what they are looking for. I would say that generally most buy & hold investors are expecting some level of rehabilitation to take place. The same goes for flippers. Often times the more repair needed, the more to be made!

I agree with you @Brian Gibbons

We could definitely use the bump in capital to fuel future investments. I will keep you guys updated. We are submitting out offer today.

Hey gang, considering this 3/2 in Sanford, NC. Looking to do an advanced cosmetic/partial mechanical rehab on it.

Here are the details:

• Beds: 3 Bed
• Baths: 2 Full Bath
• House Size: 1,634 Sq Ft
• Property Type: Single Family Home
• Year Built: 1964
• List Price: $39,500

Plan going in -
#1 - Buy & Hold
#2 - Resell for profit
#3 - Lease option

FARV (Fast Sell After Repair Value) $110,000

Going to offer $25,000, looking to get it for $30,000

Estimating $40,000 in repairs (roof, siding, HVAC etc)

Total project cost $70,000

Down payment $21,000 (30%)

Expected Rents $900 (Based on numbers from Zilpsy, Rentometer, Zillow and test Craigslist ads)

Breakdown of monthly expenses -

Total operating expenses: $380.00

Mortgage expenses: $278.22

Repairs: $90.00

CapEx: $90.00

Insurance: $60.00

Management: $90.00

Monthly P&I: $278.22

Property Taxes: $50.00

Total Monthly Income:$900.00

x50% for Expenses:

$450.00

Monthly Payment/Interest Payment:

$278.22

Total Monthly Cashflow using 50% Rule:

$171.78

Looks like almost a 9% Cap Rate, and 12% ROI. I'd like the Cap Rate to be higher, but the rents are low in our neck of the woods. Please tell me what you think, all feedback welcome!

Thank you!

@Robert Melvin

Hi Robert!

I interviewed three property managers for a rental of mine in Sanford, I used the Bigger Pockets questionnaire to grill each of them lightly. Unfortunately, none of them had extensive experience working with investors, but there was one in particular that did well. Here is her info:

Cathi Dickerson
REMAX Southern Properties

[REMOVED]

I am planning on using her for properties located in the Fayetteville area, but I am not certain how far south (Raeford/Hope Mills area) she covers. Give her a call, maybe she will fit your needs. Note - I do not currently have any properties under her.

How about yourself? How long have you been an investor in Fayetteville? Military?

I will send you a colleague request!

Good luck!

Hey gang, I am trying to log in to my AP247 account, and the site is not coming up. I've tried multiple computers, dumping cookies, resetting router etc.

Is anyone else having trouble with it?

I need to start looking in to a software package myself. Thanks for the suggestions!

@Cory Melick Welcome to the site, and to REI! That's great you and your wife and working at this together. I agree that it is important for you BOTH to agree on every property you acquire, otherwise it is not much a business partnership is it? Patience is critical here for you. If you are starting to feel antsy, take a step back, take a good long look at your Criteria (SFR/MFR, Location, Size, Cash Flow etc). Your Criteria will tell you when you've found a a deal! The numbers do not lie! If you want 18%+ returns, then THAT is your Criteria, do not waiver from that and settle for something that does not suit your needs. Please post your numbers on the deal analysis forum so we can take a look! Good luck!