All Forum Posts by: George Smith

Thanks for your insight John. It’s appreciated. 

I ran the numbers in all different combinations..except that one. Haha. Thanks for taking the time. George

Anyone know how the Surplus calculation ($37,300 in this case) is computed under "Downpayment"?

$45,000 PURCHASE PRICE

Purchase Closing Costs	$2,300.00
Estimated Repairs	$55,000.00
Total Project Cost	$102,300.00
After Repair Value	$130,000.00

Acquisition

Down Payment	$0 ($37300 surplus)
Loan Amount	$82,300.00
Loan Points/Fees	$0.00
Loan Interest Rate	9.000%
Monthly Interest	$617.25
Total Cash Needed At Purchase	$20,000.00

Thanks,

George

Im looking at 2 family which will be bought as follows:

20k Cash

84,300 Private Money Loan

I have a bank that will refinance at 80% LTV (130K ARV = 104K mortgage).

I understand that the TOTAL Cash Invested shows 0.00 but I'm assuming thats only on the Refinance. The acquisition shows 30,000 cash needed at purchase which should be covered buy the private money loan.

Im obviously trying to get my money back back out but im a bit confused on:

-How much cash i am putting up? 30k? I only wanted to use 20K of my own with a private loan.

-Where is the amount that Im profiting which will now be the downpayment? It says that total cash invested is 0.00 and my Cash on Cash ROI shows Inf. after refinance but Im confused on how much money im putting in vs. how much profit I pushed into it.

-I added the initial purchase price, closing cost, and rehab and then subtracted my 20K downpayment and entered that amount for the loan amount on the initial purchase. Was that done correctly?

https://www.biggerpockets.com/calculators/shared/2...

I appreciate your time,

George

I apologize...I meant on the calculator. 

The BRRRR calculator asks for rehab costs but it then under "Purchase Loan Details", it asks for "down payment of purchase price". Where can you actually finance the rehab price with the purchase price with a down payment of 20% for all costs?

These current #'s dont meet my qualifications at this point but im trying to figure out how to add the rehab costs for the aquisition(private money) loan.

$50,000PURCHASE PRICE

Purchase Closing Costs	$2,000.00
Estimated Repairs	$55,000.00
Total Project Cost	$107,000.00
After Repair Value	$135,000.00

Acquisition

Down Payment	$10,000.00
Loan Amount	$40,800.00
Loan Points/Fees	$800.00
Loan Interest Rate	10.000%
Monthly Interest	$340.00
Total Cash Needed At Purchase	$67,000.00

Refinance

Loan Amount	$115,000.00
Loan Fees	$7,000.00
Amortized Over	25 years
Loan Interest Rate	6.000%
Monthly P&I	$740.95
Total Cash Invested	$0.00

Financial Info

1.73%2% RULE

$94,200.00TOTAL INITIAL EQUITY

2.25GROSS RENT MULTIPLIER

2.28 / 1.05DEBT COVERAGE RATIO

Thank you for this list. I appreciate your time.

Revere pewter if you’re not panting everything white.

Providing a lawn mower to a tenant who tells his 15 years old kid to mow the lawn and then happens to cut off a few a toes is too much of a risk to me personally. Also, if it’s not running, you’ll be getting the phone call. I require tenants in single family homes to provide their own. In multi units, it’s included in the rent and a service takes care of it. But we all have different risk tolerances.

The unemployment rate is a farce. I believe that you have to start either labor participation rate.