All Forum Posts by: Yia Her

Philip - nice to hear your story. It's never too late to jump into the game. I'm digging the attitude and mindset! I do agree with Bill Manassero about leverage and not dumping 100% of cash into a deal. You can get to where you want if you can leverage your money and and be smart about it. It's a long game and patience is the key. Anyway - I'm investing like everyone else, fix and flip, buy and hold, capital raising, so forth. I'll send you a deal to evaluate to see if it's something that will fit your needs. Good luck and we can chat if you'd like. Yia

It seems hard to tell how much you'll make but if you have the numbers and know how many nights you need to airbnb then that's target/metric you'll have to trust and go with. Worst thing you can do is have this idea and goal but you never end up doing it. One of those "what ifs". If you're trying to get $700 month income, that seems way to low. I think you can rent to a regular tenant for $700 a month and pay less in Insurnace and so forth. Otherwise - it sounds like you have a figure you need to meet and the best way is to just do it. The other thing is, are you bound to stay with airbnb on your property if it doesn't make money? Can you resort back to traditional rents?

You have a unknown here which is the lot split. It can cost time and money to split a lot, but first you'll need to determine if the lot can even be split. I think you answered your own question here about being able to take out your capital since you said that ARV $130K is almost certainly too high. Typically for SFR dwelling, most valuation are done with regular appraisal using most recent sales comps. Rarely do I see an appraiser used income approach for SFR dwelling. Typically done with multi unit of 5 or more. On the other hand, looks like your buying this property almost at current market value so trying to add value from an income standpoint is almost impossible. Most lenders will look at this deal and value it base on current market comparable and you'll find yourself leaving some cash into the deal. In any case - I would re-evaluate the ARV to make sure you have it correct and go base off of that. Otherwise Seth is on point about buying at a great deal to structure good BRRRRs. Good luck

Sorry to get back to you guys late on your responses and feedback.  Utilities are incorrect and is now corrected.  Cap Ex should have been allocated in here but will be minimal since the repairs are including HVAC, Plumbing and water tie in to public system.  @Patrick Liska I don't anticipate income the first year, most likely will show a loss on the return but definitely year two will be good.  @David Da Silva the rent was avg using the 2 beds at $750 and 3 beds at $825 - $850 monthly.  Thanks for the responses.   

Never rush into a deal that doesn't make sense.  This one definitely doesn't make sense.  The best part of your research was to come here and give the scenario so that BP experts can help chime in.  I would revisit your "end goal" and your "why" in Real Estate Investing.  This will give you clear picture and you will help you stay on path to becoming successful.  Good luck 

I would definitely seek someone who will lend at least $55k + $80k = $135k (you come in with 30%) of that. Should give you enough leverage but you may find yourself better off with partnership with someone who has money and split the deal. Splitting the deal maybe great idea since you have another party (investor) who may see things you didn't. They also may bring value to you and more importantly - if they do the deal it means you have something. Or you may need to find private money from friends family so forth.

@Virginia Jones  I love your story and love your spreadsheet.  Is that something you are willing to share.  I have other versions but your's broken down very simple and easy to read.  Thanks and good luck.   

Most lenders doing a cash out refi would do a LTV of about 65% for commercial units. You'll need to connect with a commercial lender to check their requirements before plunging into this. They'll typically use NOI and rent agreements season about 3 months (some will require about 6 months of steady income) before they can refi your cash back out to you.

Depending on the scope of work needed, you may want to go with a HML that will fund the purchase deal and also rehab all together so that you can do the rehab right of the bat and then refi out with a conventional commercial lender when your units are fully rented.

Good luck - $55K for 11 units sounds like a dream here in CA.  

@Jason Bott  would you email me the insurance info as well.  Would like to get more info on that.  I'm here in CA.  Thanks.   

I have started DM this year in March.  First mailers brought in 9 calls, 2 potentials and 1 in the deal right now.  It did take a while for us to work with the seller(s) but patience and rapport is key here.  Personally DM works for investors because you're really trying to buy a property that is deeply discounted and for that matter, you'll definitely need to reach someone who maybe on the older side who still use the old fashion mails and read them.  On the other hand, if you're thinking about targeting millennials creatively, you'll need to asses the following: How many of them own homes? Are the homes they own distress or in need of "love"?  Will they take an offer 50% 60% or 65% of market value?  But I do believe that other creative ways to market to select individuals using skip tracing, drive 4 dollars, door knocking are all still effective.  Its how you do it that matters.  I think your goal in DM has to be specific for this work.  I would love to hear about other ways to market to them.