All Forum Posts by: Aaron Montague

@Kyle Robarts

To echo @Steven Foster Wilson's point, get on the phone!  I make ~30 lender calls a month to see where they are on rates for new purchases and refinancing.

My range last month on new purchases was 4.5% with 2 points down to 2.875% with 3 points. I called 32 lenders and spoke to 17 of them for those numbers.

Hey @Scott Heinze

Each city or town will have a specific fire code that you need to look up.  There are several standards out there or the municipality may have its own.  Call the fire department or the town manager and ask your question(s) directly to them. They are almost always happy to help out, especially if you reach out proactively rather than begging for an exemption after you put up something.

Nice work @Moises R Cosme!

What did your rehab actually do to the house?  I'm guessing a fair portion of that was in the kitchen.

485k would be my top.  So I probably wouldn't even offer given the asking price of 975.

@Don Petrash

What ended up happening with this place?

Rutland is like most markets out there.  Tenants are a mixed bag and you should screen them well. My Rutland tenants were a 90/10 lesson.  The single inherited tenant I had was the most annoying by far.  She was 10% of my doors and 90% of my headaches :)  But she paid each month eventually. 

The multis in Rutland are OLD.  Be fully prepared to do a large amount of work on them.  I usually allocated $300+ per month for Cap Ex and I used it all.  

The ROI in the market are awesome, especially on 3 and 4 unit buildings. Rents are high, prices are low, and Home Depot will be your 2nd home. If you can add things like coin-op laundry, you can make a sizable amount of extra money there. Don't do anything in cash however, someone will eventually break in, destroy your machines, and steal the $50 in quarters.

@Don Petrash

My Google Fu failed me, I couldn't find the place. Your link tells me "I need to be logged in to do that," so it didn't work for me.

This place starts off well, 1% rule and all.  I can't get to any more information.  Could you post a PDF link here?

@Keleisha Carter

Short answer: buy it for 30k cash, fix it, then flip it.

This deal is terrible as laid out.  You are going to lose BIG money if you buy at the numbers you presented. Hard money is going to chew up your cash reserves.

The MLS is neither a good nor a bad place to find leads, it is simply another source among many. Don't discount it or rely on it too heavily.

How to make this deal not suck:

Rework your numbers for more accuracy. Property management should be at least 10%.

Cap Ex + Repairs needs to be at least $200/month except for the smallest of brand new single family homes.  Everything breaks eventually, start saving now.

If this place really needs 35k in repairs, I'd offer 30k cash and let it sit. There is a back of the napkin formula in flipping that is essentially (purchase + repairs) < 70% of ARV. You could probably buy at 38-45k and still make some money on a flip if your ARV number is accurate.

@Parker Chrisman

Generally you don't make that kind of guess as it doesn't make much sense.  Drive by the property and see what you can see.  Can you peek into the windows? What does the roof look like? If you ask the neighbors, what do they tell you about the place?

@Nicole Heasley Beitenman

Your numbers look accurate on the operating expenses side.  The only thing I question is the total amount you expect to pay for two loans.  You only have $3000 listed under closing costs for the first loan.  I'd expect at least 5k for EACH loan in closing costs.  Can you really get 2 loans for only 3k in fees/appraisals/etc?