All Forum Posts by: Vincent Grossi

It sounds like a pretty stellar deal. How are you financing the purchase and repair? That will tell you both your after-repair cash flow, your holding costs during the renovation, and whether you need to use that new ARV to refinance out at the end and get your capital back.

It might be worth running through the BRRRR calculator here if you haven't already.

Quote from @Craig England:

Have you talked with a lender and gotten any kind of preapproval?  I'm not too familiar with that area but I know the mls is pretty sparse! Good ones go really fast!   I'll keep my eyes out now that I know what you are looking for.  I can also help get you numbers on the insurance side as you start to look at deals.  Hit me up if I can be of assistance!  

I've talked to my lender and they've found me a 10% down investment property loan, which started me seriously looking because I can actually come up with that 10% via a HELOC.  I originally thought I was going to have to wait for some mortgage paydown and more appreciation to hit that 20% down number.  I do not know what kind of rates they offer on that.

Quote from @Craig England:

@Vincent Grossi 

Generally those all look pretty good!  Similar to what James said those are decent budget numbers but may actually be able to do better on vacancy and property management.  What part of town are you wanting to buy in?  Older properties I would definitely want some more reserves saved for cap ex and maintenance.  The few single family properties that "cash flow" sometimes are the older ones that are going to need continual money put back into the cap ex.  I'd definitely check age of roof, appliances, hvac, etc so you have a good idea on rehab/cap ex heading into it.  Are you planning to rehab or something more turnkey? 

Congrats on taking action and moving to the next step!  I look forward to seeing your progress!  

I'd really like to buy on the west side of town, there were some fourplexes in the Holland Park area I lived in a few years ago that I really liked, but I haven't seen any for sale and I doubt they'd be in my price range if they were.  Seems like most of the multifamily properties around town are going to be at least 20-30 years old if not older.  I'm not too terribly focused on specific location, considering there's only 25 multifamily listings for the whole town on the MLS currently, and some of those are SFH listed as multifamily because they have tenants already in place.

Quote from @Seth Young:

Are you buying in cash or financing? Rates are increasing rapidly. @Vincent Grossi

Definitely going to be financing unless I can find a money partner to provide the cash. I've been checking the MLS religiously but I'm not seeing much in the way of deals right now. I understand rates are rising but I don't want to fudge my numbers just to get something under contract and wind up with a bad deal.

To parrot something I heard on the BiggerPockets podcast, the best thing to do right now is find your fire.  Figure out which activity in real estate investing excites you most.  For me, I'm pursuing small multifamily investing because I want my risk of covering the mortgage spread out over multiple tenants, I want to be a service-oriented landlord who is pleasant to deal with, and I believe there will be less competition in the small multifamily space versus single family and large multifamily.

That being said, as a college student, it's never too early to start looking for your first house hack. Were I in your shoes, I'd start prepping to buy a small multifamily using low down payment, owner-occupied financing. You can also start using the BiggerPockets calculators to analyze deals on the MLS so you can get in the habit and can quickly identify a good deal or not.

Hello everyone!

I've been orbiting around real estate investing for a few years and I'm finally in a place to use my primary residence home equity to buy my first long-term rental.

I intend to invest in Colorado Springs (where I live) and I'm currently analyzing small multifamily deals.  I am looking to know what you guys are budgeting in your analysis for your variable expenses; maintenance, vacancy, capex, and property management.

I'm currently analyzing at 8% vacancy, 5% capex, 5% maintenance, and 10% property management.  Do these numbers sound good or are they too low?