All Forum Posts by: Mirza Baig
Mirza Baig has started 3 posts and replied 7 times.
Post: Method to Convert a Fouplex into an 8Plex
- Posts 7
- Votes 1
Hello everyone. I really need some guidance for a creative opportunity. I found a great fourplex that's cashflowing just enough to make a few hundred bucks a month (after loan payment) just the way it is right now and it's 100% occupied.That's okay but the lot itself is big enough for me build another fourplex structure (making it an 8 unit property) behind it and I think I can make some serious cashflow after that. What do you guys think is the best way for me to approach this? My intent is to find a purchase/construction loan/mortgage with a low down payment that allows me to do this.
I'll most definitely take that into account. Thank you.
What are the costs one should take into account before making an offer (closings, rehab, loan, holding)? For example:
- Rehab/Repair Cost
- Title Fees
- Loan Interest
- Points
- Doc Fees
- Taxes
- Holding
- Bills
- Insurance
- Commissions
What are some of the hidden costs you've endured that you wished you would have taken into account before purchasing?
Post: Fort Worth, TX Deal Analyzing Help
- Posts 7
- Votes 1
Yes, absolutely. I've been studying and actually doing comps intensely lately and I think I've really started to nail it down. I've also been getting real good at analyzing deal and loan structures better to get to the real costs of things. Still working on nailing down getting better leads, analyzing rehab costs more thoroughly and figuring out the best long term business plan for me.
Post: Fort Worth, TX Deal Analyzing Help
- Posts 7
- Votes 1
Got it. These are the exacts things I am wanting to learn before I lock myself into something. I'm going to go back to the books and get my real costs down better. After putting all the real numbers together, this deal no longer seems like the ideal slam dunk for the first one. Thank your both of you guys for your input.
Post: Fort Worth, TX Deal Analyzing Help
- Posts 7
- Votes 1
Originally posted by @Michael Hamby:
Hi Mirza! What formula are you using to buy houses at? Consider your purchase price, holding costs, hard money costs, closing costs, DOM, ARV, and then plug how much you want to make on this. Are you using $225,000 as your ARV? Using the 70% rule this would mean your offer would be $122,500 -$132,500 per your rehab budget. However, maybe you are comfortable with making less on this so then you would just have to ask yourself what your risk tolerance.
Thanks for your response Michael. I'm vigorously learning how analyze better so I'll most definitely relook into all of the factors your mentioned and more. Originally, I was using the 70% - Rehab Costs but I am okay with making less on my first couple of deals. I'm more interested in getting the process nailed down rather than making big profits at this time so my risk tolerance is low (low risk = low reward). To me, this looked like the right deal for that but I'm still not sure. Here are the hard money loan terms I received. I was thinking it might too much of a down payment for this deal.
Post: Fort Worth, TX Deal Analyzing Help
- Posts 7
- Votes 1
https://homeland.nwaoftexas.co...
Hey everyone, I'm actively looking at deals right now and I need help analyzing this one right here. I believe it's a good deal for a flip but I wanted to ask the BP community on their thoughts. This would be first investment so I'm really looking for something clean, simple and educational. I would a hard money money for this. What do you guys think?
Rahab Estimate: $25-$35k
Deal Fee: $6k
Other Fees: $1k
1604 Cienegas Cir,
Fort Worth, TX 76112