All Forum Posts by: Eugene Beard

@Mark Beno I would like to work with you in north atlanta area. I think we could work your system together to help you expand! Please contact me if you are still looking for partners. 

Thanks!

@Maurice Young is this duplex still available?

@Aundrea Newbern You should put into the wording of the contract that the seller agrees to evict one tenant (of either their or your choosing). Your choosing if you want to choose which unit you want to live in. Like if you want to live in the worst unit or the unit making the least amount so you keep most of the higher rent units occupied.  but if you add it to the contract and they agree you stay within the bounds of your finincing.

good luck. Let me know how its goes I like small multifamily properties in Atlanta area myself. 

If I may ask what side of town is it on and what  price did u get it under contract for(doesnt have to be exact if uncomfortable)?

@Mike Snyder  here is the link again. If you have any issues let me know.

https://www.biggerpockets.com/calculators/shared/198301/dfa6541b-ab47-4f11-bd50-cf838bbb86a0

@Chris Jackson

Is this your first home? or primary home? FHA loan is always an option as that is 3.5% down. I went through a program called NACA that will have no downpayment or closing costs but you have to live in the home. It depends on your situation honestly. If your single and renting I would go with NACA possibly or FHA(faster) . If you have your own home and dont have 20%I would see what govt programs (grants) may help pay for part or full of your downpayment(they have those in GA) but you have to have something. Even if you do owner financing you will have to bring money to the table 90% of the time for closing costs or for unforeseen repairs or even before closing for appraisals.I had about 10K when I ought my duplex so I understand about not having 20% down. I glad I went thorugh a program that didnt use all of my money becuase I needed a saftely net because things Happen!.

Your best bet is owner financing with good terms that gives you some time to make the first payments but maybeitsa higher purchasing price. that may benefit you the best. I havent been able to get ownerfiniancing in this market so to that I will say have a backup plan and good luck!

Hey @Chris Jackson 

From the numbers your giving here I made a quick calualtion pdf for you. See below

But you are missing a few things. Specifically the repairs needed to the home and Capital expenditures (which I included in my calcualtions and estimated at 10%). all things considered it looks like a pretty good deal to me. Make sure remeber taxes usually go up from what they have listed in their taxes last year.

Also double check your market rents using rentometer.com to make sure you would have market rents for your bedroom/bath level. Your 3 rental prices seems scattered. usually a triplex has all the same bed/bath at 2/1 or 2/2 so Im thinking you could get all the same rents if u updated the 2 slacking units to the premium one. Just a thought.

If you have any questions let me know.

Happy Hunting!

https://www.biggerpockets.com/calculators/shared/1...

@David Martin

I think thats because I put the hard money loan in for 1 year but thts how much it supposed to be right? Or am I supposed to not put the hard money term in with the interest rate because hard money is considered as cash and the interest rate would only be monthly holding costs?

Hello,

I was looking at a deal doing some analysis including some Hard money calculations with refinancing after a year. I am 80%  sure that I am doing something wrong here. I am using the BRR calculator and the numbers are high that I would need to bring to the table when compared to the Rental calculator rehab calculations.

https://www.biggerpockets.com/calculators/shared/1...

Just in case the link expires here are my numbers below.

Area: B-(possibly C)

Current Market Asking price is 262K

Tax Assessors value(2016): 230K

Property Owner: REO(Bank of America)

Previous owner purchase price and year: 232K 2002

Went into HUD: 2012 108K

Its been in winterization off market since Hud could not sell for 108K.

Offer Price:190K

Rehab price:60-80K(guesstimate)

Hard money loan is for 65% LTV including rehab costs with 3 points that is wrapped into the loan. Im not sure on the length but I guess its 1 year for the loan. (this is where its tarts to get fuzzy for me) The interest rate is 11-15% but is that over the 1 year or every month.(is that even good?) Which is 29700 or 2400 a month in holding costs(?)

Ive also spoken to a refinance loan officer who has told me they would refinance once the repairs were done(less tan a year) and they do 70%LTV.

Does this seem right?  do I add the rehab costs to both the first and 2nd loans or is the terms correct or good? From my calculations it says at 190K offer I still would need 100K to the table when repairs should be including in the hard money loan? What am I missing here?

The following is some side information I want to share so if you have enough info please skip to the link.

Back then it had a hole in the roof and holes drywall in a couple of units, which has been recently fixed.

Other issues include: outdated kitchen(all 4 units), missing carpet in living room areas, rotted doors, needs repainted stucco on exterior walls and new paint interior as well, updated ceiling fans, and ceiling paint, updated Water heater and HVAC, replaced glass windows, repair door frames, overrun landscaping and trash, broken cement driveway

Unknown information: water/plumbing issues, electrical issues as it was winterized when I looked inside the home.

Upgrades I want to add include: Security lighting/system,up-to-date kitchen, update fireplace molding, paint parking areas,update all entryway door and closets, carpets to laminate flooring, examine windows and doors for gaps to reduce heat loss, if need be examine plumbing electrical and heating ducts.

Analysis:Quad plex in same neighborhood with same stucco construction and year  sold 4 months prior for 232K w/ no new updates just clean livable conditions. 2 Quadplexes that are brick construction and older  models but have been updated to 2015 and currently pending contracts for 315K.

What numbers am i missing. Is my term for the hard money throwing off the calculator?Is there enough meat on the bone? Too much for repairs too high for offer price? Any help or advice would be great.

https://www.biggerpockets.com/calculators/shared/1...

 that is so cool! so all your properties are in LA? It says ur in FL though or do you mostly do Out of state investing? If so what type of areas and value do you look for and how do you pick the deals with the differences in each area?

Congratulations @Ethan Lee on leaving the Rat Race! I would love to talk to you about your numbers. AKA How did you do it?!  From what I read you did 10 units in 7 months! thats amazing! I would really like to hear more details on how your doing this!. I am on the same buy and hold path as you are. I was looking to house hack a quad for my first property but I ended up settling for a nice Duplex and still being able to house hack. Now Im looking for my quad. id like to know your numbers  basically how you moved from one to the next so quickly!  How long did you live the frugal lifestyle before having saved up enough to getting the first property?  did you do all conventional on these properties? Sorry if Im too inquisitive Im just very interested!

Thanks,

Eugene B.