All Forum Posts by: Mark Bookhagen

There is a train of that that investors don't speculate. If you're happy with your numbers without the appreciation, do the deal. If not, keep looking.

If you can pay cash now and then re-fi later, that will help your offer stand above the rest as well. That's a good option.

You'd have to calc your downside risk if things go wrong. You don't want it to be unreasonable so as to scare them away.

Legal and accounting expenses seem super high, everything else looks reasonable. There is no "right answer" though. It is all estimates. It is better to err on the side of caution.

You should already have a survey from when you bought the property. Find that...

@Joel Griffiths I definitely wouldn't do that and delete any ad that has that in there (craigslist, etc)., You're asking for trouble. Note: they are both separately and fully responsible for 100% of the rent. The rent is one number, not one number divided into two parts.

@Zhou Ni Then it may make more sense to buy a move in ready and occupied property.

It depends if you signed something with your agent yet. And ethically, if your agent had anything to do with bringing the buyer.

I usually use 10% for vacancy. And you're right about the full rehab maintenance being lower. Maybe up to to 6 or 7 percent... I would rather estimate too high on expenses and then be pleasantly surprised if the costs are lower.

80/20 LTV at least. Assuming no repairs needed, you should have enough for:

Closing Costs ~$7k = 40k-7k=33k

33k/20%= $165k purchase price

But the bank may require 6 months of reserves, which means your 33k number that you could put down would need to be decreased.

This assumes credit is good, and DTI is good.