All Forum Posts by: Paul Bowers

Are you buying this property or trying to wholesale it?  Have you walked through the property to get an ACCURATE cost to rehab?  Are you paying cash or financing?  There's dozens of other questions that need to be answered before you move to the steps you're asking about.

What is the detail on your total monthly expenses?

Couple things, first your link doesn't work.  Second, and more importantly, you haven't provided any information to help you analyze the deal.  What are the rents, what work needs to be done on the property, how are you paying for it, what are the taxes, are you managing it or is someone else, what are the vacancy rates in that area, etc, etc, etc....

I like Renovation Realities and First Time Flippers.  A little more realistic vision of what it's like to do rehab on your own.

Thaddeus Duffy who are you using to handle this for you?

@Omar Cantu, you say besides the truck you have virtually no bills.  If that's the case you should be able to save up the required down payment in about a year.  Getting rid of the truck would certainly help but if you have as much disposable income as you think the down payment shouldn't be too tough to come up with.

Wouldn't have made more sense to sign the contract at the beginning of the loan not the end?

One word of caution is turnaround time.  You have to figure on losing some time and money when the students move out to repaint/update the apartment before you could rent it to aiBnB customers.  If I'm not mistaken, my next door neighbors daughter was forced to just rent her apartment for a full 12 months even if she planned on going home for the summer.  That may work better than the airBnB and they just move back in come fall so no turnover repairs.

@Charlie MacPherson but he's also living rent free,

Does it make sense to break the valuation into to segments? For example, what is the house worth on a one acre plot? From there treat the farm as a commercial property valuation. Use NOI and Cap rate to determine a value for that. At that point look at the combination of the two and see if it makes any sense. You'll probably not be able to be at 100% of the combination but it may give you a solid starting point.