All Forum Posts by: Jeremy Holcomb

Not sure what happened to them. Let me see if I can repost them.

32 units that need major renovation. The asking and repair price is over my rule of 65%. However, these are two bedroom units and I would section 8 them under market rent to fill them quickly. In the loan portion I included cost of renovation and purchase price due to I would borrow the renovation money as part of my loan. The cash flow alone seems to make it a great deal. What do you think? Also, do you think a HML would lend with it being over 65% value due to the return rate and cash flow.

I would call at least 3 separate contractors for each item to be done unless using a General Contractor then 3 quotes should be enough.

Marion County Section 8 rent is $1389/mo.

You should at least price to fair market rent. However, you are still above the 70% rule and makes this a house to pass on unless you get price dropped by at least $40K or get rehab costs lower. 

@Justin Goodin also have you had contractors give you estimates before even considering what rehab costs may be. I always put a clause in the contract that my contractors must come in and make sure I haven’t missed anything. 

Personally, Those numbers don't make this a worthwhile investment for the BRRRR strategy. I would think for Indy that is overpriced. That is way over the 70% rule as well in case you run into overruns on cost.