All Forum Posts by: Nick Mullen

(ARV x 0.7) – Repairs = Maximum Purchase Price

Me and partner are looking at an off-market townhouse that needs 150k of work and has an ARV $1,100,000.

(1,100,000 x .7) - 150,000 = 620,000

620k would be the max purchase price then

It rents for 6.5k/month, property taxes are 10k/year---a decent 1%er

I ran the numbers thru the rental property calculator with putting 20% down and get conservatively 10% CoC

We believe the property to be a good deal. He brings a construction background to the table and property management. I bring property management to the table and investors. He found the deal. Also, it is a bit time sensitive and the owner will bring this to the market in about a months time...

Is it possible to combine 3 strategies here and do a 3% FHA, BRRRR, AND a construction loan? If so, and we DID do all that stuff, It seems a bit tricky for me to wrap my head around it...does anyone have any advice on how to boil this thing down into simpler terms?

My hope is that I can capture some equity here without using ANY of my own money

Thanks in advance for any help:) 

...and sorry for the poor formatting, it's getting late

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320k...property taxes are 2400/month and how are 240/Month

here that link with pictures etc.

https://www.corporatehousingbyowner.com/properties

Fully Furnished, steps to the courthouse metro. Low HOA fees, low property taxes, and there is a renter in place already. Great turnkey rental. Here is a link to my CHBO rental site. The condo has a six month minimum for renters. The current renter is in place until next spring.

Thanks for the responses all. @Mike Warder It is in the Bedford Park townhouses on Near Washington blvd and 50. I have known the seller for a few years as his bartender and it never went to market.

@Brian Garrett  I waffled back and forth, but decided to keep the property as I put too much time into the place and its turnkey at this point. The property is very close to my residence and its easy to manage.

Thanks @Grant Rothenburger

Hey All,I just completed my first remodel on a 2B/1.5Ba in Arlington VA! Here's the bullet points:

Purchase Price: 370K

10% downpayment

Seller financing at 2% ammort over 30 years, ballooning in 2. I get traditional financing after that

I Invested 75K into the rehab, which turned the unit into a 3B/2.5Ba

ARV is +-475K

It is renting at $2900/month

I think I got a great deal on the purchase of the property, and and hopeful to find the next deal soon. Perhaps this will eventually be a BRRRR property. I'm not quite sure yet. I welcome any questions comments feedback or the like.

Thanks! I'm so happy BP is here

Cheers, 

Nick

I'm trying to pull out 20%, not 80%

I can at least pull 70k out, yes? And by doing so I acquire a cash flowing rental for next to nothing. Have I got this all wrong?

I'm putting in the 80k cash. (70k for repairs, 10k for downpayment), and then pulling it back out for the refinance. 

So in my analysis, I acquire a cash flowing rental property for next to nothing

The HOA is 350/month. So the monthly cash flow is still 650!