All Forum Posts by: William Moya

@Jonathan Stone thanks so much for your advice, I agree 100%. And will take your advice to heart.

On to the next deal, I appreciate you.

@Peter Nikic I agree I actually passed on it, my partner seemed like he wanted to proceed but I advised him not to and that I would rather look for a better deal. Specially since he is a good friend and I've know him for a long time.He was appreciative at the end of the day.

I advised him that for that amount money we can spread the risk on multiple deals.

Thanks for your help, I really appreciate it.

@Victor S. Hi, yes I had 4 estimate from contractors ,roofers painters, etc. And yes I have done about 50 rehabs some quite extensive buy only on SFR.

The estimates ranged from $200k to $300k but in order to get the property to current market rents we would have to put in quite a bit of money.

@Justin Hoggatt thanks for you feedback. The rehab is pretty extensive. Needs a new roof the AC units may have to be replaced, the building is infested with mice and rats so we might have to fix the air ducts the repairs that were done have to be redone. Some of the bathrooms are okay but the kitchens have to be redone, some of the windows are broken. Etc. I believe I might be able to get it done for $200k, but I an afraid I may run into surprises as its always the case. Lol.

Since many of the posts mentioned I was too low on my numbers I decided to pass on it and look for a better deal.

This has been a great mini seminar with ton of nuggets.

Thanks to everyone.

@Neil Schoepp Hi and thanks for the info. I will pass on this deal and look for another one that makes more financial sense especially since my investor is a good friend of mine and I definitely do not want to lose his money.  On to the next one. I greatly appreciate your help!

@erikw Thanks for the info,  So, on average should I estimate about 30% on average for all expenses? if there is not debt on the property as a rule of thumb? 

I greatly appreciate it your input.

Hi @evanpolaski, Thanks for bringing that up yes the taxes are about $5600 per vear and the insurance about $3500 per year and I did overlook the commissions on the lease up, thanks! 

Hi @stevenbrown I am estimating as they did not provide the expenses with the exception of a utility bill, I can see the taxes and i got an estimate of the insurance, they are not being forthcoming on the bills as the property is really run down. The current rents are in the range of $595 to $650 and the market rents are in the range of $825 to $850 each.

Hi @davidavery thanks for reaching out. in response to your questions:

Are you re wiring, new plumbing, new roofs? New roof, electrical looks good, we might need to do some plumbing.

New paint, new kitchen, bathroom, and floor coverings? Yes to all of these.

New windows, sheetrock, trim and doors.

New appliances?  Yes

Will it double your rent?

Are you keeping this long term? ( biggest question). My partner wants to get his principle out, so , I will either sale or feri to get his principle and profit and I will hold long term.

Unfortunately, the property cannot be separated as they are all on one parcel and my partner wants to be one only one on the deal. But I like your thought process.

Thanks!

Hi @jasonwalling this number is the estimated the number my partner and I will profit. He will be putting in the purchase price $525,000 plus the rehab $200,000 and $250,000. Once we bring the rent to market rents and its fully rehabbed we will sell or I will Refinance and pay him his profit and principle. Estimated time frame is 12 months for this project.