All Forum Posts by: Yishi Pan

@Guifre Mora

Thanks for the tip. Would you say that it's still a deal to pursue if the purchase price + rehab cost is > 75%ARV but somewhat close.

Hi BP Community and Investors,

I'm looking at a property to brrrr invest and wanted some advice on proposing an offer. Here are the details as follows:

1. Asking Price: 120k needs TLC

2. Comparable Market Analysis ARV average (most recent sold in past 6 month): 240k

3. Repair cost: 100k - 150k, haven't inspected and might have more surprises work included: interior gut job down to studs and exterior window/doors/siding/roof

4. Holding cost:  Property tax 200/month; insurance 170/month; Utility (Property vacant) 80/month; Other cost 80/month

5. Renovation period 6 - 10 month 

6. Refinance after stabilized with tenant in 12 month

7. Market rent after project complete is $3740/month 

What is the max offer that I should offer to use hard money for this project or is it even possible?

I've also consider to finance through bank with construction loan; wondering how that typically works? I'm from Canada.

Appreciate any feed back, Thanks!

 

@Melanie Dupuis thanks Mel! Do you happen to know the average appraised cap rate and price per door? 

Hi BP Community,

I'm new to real estate investing and would like to connect with real estate agents and investors in Cornwall, Ontario.

I'm interested in buy and hold small and large multifamily.

I'd love to connect and meet new people and learn from you y'all.

Stay safe,

Yishi

Hey BP Community,

Newbie Investor here. 

How to analyze Multifamily using the BP calculator if the previous owner is willing to finance a percentage of it.

Also if it has room to lift and raise rent and increase decrease total cap rate; increase ARV, do I then use the BRRRR calculator?
  

I just handed in my first offer, fingers crossed, hopefully it gets accepted. 

Just wanted to ask the community , because it is long distance investment property, if I do own the home what is the best way to keep track of everything, and also in the future if there is more properties, how do I separate and keep clean books for each and every one of them. Appreciate your feed backs!  

Hey guys,

I'm new to this and might need some help with writing a simple a effective letter to seller regarding an offer that I've made.

I just submitted my very first offer and really want to make a statement that I love the property and really wish to own it. 

How should I phrase my words, please kindly give me some advice, really appreciate it!

@Anthony Dooley

Thanks for the feed back! really appreciate you taking the time to give me some pointers. 

I Agree, most of my big repairs are in pretty good shape, maybe I can lower the repair cost and capex. 

That being said my $11,000 reno budget is mainly for repairs that are cosmetic like flooring; paint; tile and baseboards etc. 

@Fedor Volkov

Thanks for the feed backs! really appreciate you taking the time to answer me questions.

I think 2.2k is a pretty Conservative estimate but not sure if this Pandemic will play into effect. Yes it is a SFH.

Heat source is using electricity, I may consider adding a separate meter for that and let the tenant each pay their own.

Should I aim for more Cash on Cash ROI since it is my property or this would be a buy?

Will there be any other for see monthly expenses that I may not have taking into consideration?

Monthly Income: $2,200.00

Monthly Expenses: $1,815.61

Monthly Cash Flow: $384.39

NOI: $12,238.00

Total Cash Needed: $51,500.00

Cash on Cash ROI: 8.96%
 

Property Information

Purchase Price: $167,500.00

Purchase Closing Costs: $7,000.00

Estimated Repair Costs: $11,000.00

Total Cost of Project: $185,500.00

After Repair Value $200,000.00

Down Payment: $33,500.00

Loan Amount: $134,000.00

Loan Points: $0.00

Loan Fees:

Amortized Over: 25 years

Loan Interest Rate: 3.000%

Monthly P&I: $635.44

Vacancy $66.00 (3%) Repairs $110.00 (5%)
CapEx $176.00 (8%) Electricity $100.00 (5%)
Water & Sewer $100.00 (5%) Insurance $120.00 (5%)
Management $154.00 (7%) P&I $635.44 (29%)
Property Taxes $204.17 (9%) HWT Rental $25.00 (1%)
Heating $125.00 (6%)
Total $1,815.61 (83%)

Debt Coverage Ratio: 1.60

Appreciate your feed backs!