All Forum Posts by: Daniel Barron
Daniel Barron has started 1 posts and replied 2 times.
Thanks for all the responses sorry it took so long to respond, but after doing a lot of research I finally started the process to buy my first investment property
The property I am looking at is in Westmoreland County its a fixer upper with four apartment units, 2 two bedroom apartments and 2 1 bedroom apartments and i'm able to acquire it at $5,000 after paying closing costs and taxes owed on it i'm projecting to be around $10,000 and expecting to have $75,000 in repairs it needs new siding, a new roof, and the inside needs to be redone the estimate is worst case scenario I might be able to get away with less. I plan to do all the repairs on my own because I have experience in most of the things that need to be done and it won't cost as much. Since I only have about 10k of my own to invest I lined up private lenders for the rest of the money needed paying them 15% Interest on the loan based on my research the ARV of the property will be between $110,000 - $130,000. My plan is to get it in livable condition and take out a 110,000 morgatge and and use the 80% I can get back on a home equity loan to pay back my investors with interest. Leaving me with only an $800 mortgage payment/month.
My exit strategy for the property is to fix it up and rent it out. After researching on Zillow and Craigslist I found that apartments typically rent out for $400 - $500/Month and since I have four the monthly revenue will be $1600 - $2000
The total cost/month is going to be $200 for taxes and $800 for the mortgage giving me a profit of $800 - $1000/ month
I thinking this is a solid investment because it follows the %1 rule if i have $85000 %1 means I need to rent it out for $850/month which i can do even if there is only 2 units rented.
Just wanted to throw my first plan up on here to see if anyone can see anything i overlooked or if they have any suggestions.
Any replay is much appreciated thanks!!
Hi, my names Dan just wanted to take a minute and introduce myself on the forum. I'm 22 graduated with an associates degree in business, hoping to get some advice and learn a thing or two to build a business in real estate any help is greatly appreciated