All Forum Posts by: Mario Delegato

I am looking for an investor-friendly GC to handle a large rehab project in St. Louis. I will be scheduling walkthroughs next week. Must be able to begin work in June, and must be licensed and bonded. The property can be found here:

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwjx_7W26sv3AhVGITQIHTEKAcMQFnoECAYQAQ&url=https%3A%2F%2Fwww.zillow.com%2Fhomedetails%2F2818-Saint-Vincent-Ave-Saint-Louis-MO-63104%2F2948324_zpid%2F&usg=AOvVaw3LoiMgQ9k8ahHUIg6sREzv

If interested, or if you know someone who may be, please let me know and we can set up a phone call. Thanks!

@Steve Milford: Thanks for providing your thoughts on our potential deal. The property will not cash flow while we are living in one of the three units. However,if you count the money we save from not paying rent (we are currently renters), then yes, it technically does cash flow. As for the expenses, this estimated number accounts for repairs/maintenance, vacancy, property management, cap expenditures, home insurance, taxes, mortgage insurance, and water. Regarding the rehab, what I meant by "self funded" is the money is coming from our savings, not a lender. So if the rehab takes longer, or we are off on the ARV, we will be out money but not racking up interest or other fees/penalties.

Thanks again for your thoughts! 

Hi BP! 

My girlfriend and I are beginning our RE investment journey with a multifamily house hack. We have a potential deal we would like to get feedback on — all advice/feedback welcome and appreciated :) We are converting a duplex with unfinished basement into a duplex + ADU (with separate meters). Property is located in Portland, Oregon in the Irvington neighborhood. This is a high quality east side neighborhood located 9 mins from downtown Portland.

Here are the numbers: 

Purchase Price: $680,000

Down Payment & Closing ($50,669) + Rehab ($99,950): $150,619

ARV: $850,000 (conservative) $890,000 (comps)

Expenses: $4,946 ($2,723.56 mortgage payment)

Income: $5,800 (conservative)

Cash flow: $853

CoC ROI: 6.8%

5-year Annualized Return: 25.41%

We recognize that the CoC ROI is not strong. Should that deter us from perusing? We are only putting down 5%, which certainly limits our cash flow. We also would like to refinance after rehabbing and renting the ADU to pull out our rehab costs and down payment/closing costs. If we do so, our cash flow will dwindle to about $178 but we will have no money in the property.

A few things to note. The rent is a conservative estimate and increasing rental income by only a few hundred across all three units improves the COC ROI and cash flow quite a bit ($6000 rental income = $1,011 cash flow and 8.06% CoC ROI). There is also a small garage that could be rented for storage or parking. Also, while we understand appreciation is "just the icing on the cake", the Portland market is growing rapidly and has showed strong appreciation. Lastly, the rehab is being potentially self-funded so no additional fees/costs there.

Thanks for reading through all this and thinking about our deal!