All Forum Posts by: Zachary Sit
Zachary Sit has started 5 posts and replied 27 times.
Post: [Calc Review] Help me analyze this deal - Did I Do This Right?
- Sunnyvale, CA
- Posts 27
- Votes 12
@Brent Coombs Ah, I see. This triplex may not be the cash flow machine it once appeared to be. How did you come to an ARV of $140+?
Post: hard money for high income earners
- Sunnyvale, CA
- Posts 27
- Votes 12
@David Weintraub Thank you for the info!
Post: [Calc Review] Help me analyze this deal - Did I Do This Right?
- Sunnyvale, CA
- Posts 27
- Votes 12
@John Leavelle Thanks for taking the time to write such a detailed reply.
I appreciate you noting the error of the HML vs the refi'ed amount. At the time I didnt realize that the refi'ed loan would be the ARV. Thanks for pointing that out!
2. Thats a good point, the area I'm looking into has a harsh winter and I wasn't sure how rehabbing + placing a tenant would take.
3. As far as the refinance of 1 month, I believe that you can refinance with a commercial loan without any seasoning of the loan? In your experience, has that worked for you?
4. No I did not, thank you for bringing that up.
7. Yes, based on the comments above, this is something I definitely missed.
9. Rents are competitive based on the unit being a triplex. I checked the rentometer rates VS what was posted on craigslist.
Thank you very much again! I'll definitely be keeping all these tips in mind for the next analysis I run.
Is there a rule of thumb for estimating rehab costs? I know there's a lot of room for variance, but can you estimated based on percentage?
Post: [Calc Review] Help me analyze this deal - Did I Do This Right?
- Sunnyvale, CA
- Posts 27
- Votes 12
Originally posted by @Brent Coombs:
@Zachary Sit, as a stand-alone deal, the numbers look good for a decent return. But, it's not a BRRRR deal! ie. Based on the $100k ARV, your $30k will be left in the deal for the foreseeable future! ie. How can you Repeat the deal with your same $30k, later?
ie. If you can get a deal like this for less than $100k all-in, you should be looking for ones that already show sold comps (ARV) of $140k+! Good luck...
@Brent Coombs Thank you for the input. The issue of the $30k being left in the deal came up in a another post. Could you please share how I would get that $30k out of this deal to leverage into another deal?
Post: [Calc Review] Help me analyze this deal - Did I Do This Right?
- Sunnyvale, CA
- Posts 27
- Votes 12
Originally posted by @Robert Foley:
So the forced appreciation looks poor, which means what???
Either you are just in a terrible/terrific market where 100k homes can get 2k rent or something isn’t quite right.
Are you sure you can get 2k in rent?
Are you just being conservative with you ARV ( good for you!)
Any way seems like a terrific BRRRR and a lousy flip!
@Robert Foley, According to rentometer and a craiglist search of comparable rents in the area, 2k in rent is possible since it is triplex. In the area, 2k in rent for an SFR would be a dream. In the case of the ARV, it definitely is a conservative number but not the end of the world since it is a buy and hold.
Thank you for the input!
Post: hard money for high income earners
- Sunnyvale, CA
- Posts 27
- Votes 12
I'm looking at a hard money loan as my main source of financing. If I do so, is acquiring a hard money loan similar to getting a pre-approval for a conventional loan? (I understand that hard money lenders have significantly less restrictions) But what I'm specifically asking, when you go look for a property and get a real estate agent, do you bring your hard money "pre-approval" along? Or once you find a property you go to your hard money guy and then he funds?
Post: [Calc Review] Help me analyze this deal - Did I Do This Right?
- Sunnyvale, CA
- Posts 27
- Votes 12
Originally posted by @Ken Breeze:
Hey, @Zachary Sit
On first glance it looks like you're flipping this one with hard money.
How many units? On Robert Kiyosaki's Cashflow game we would always ask when it was someone's turn to pick a card: "Small deal or big deal?" We learned quickly that the work on a small deal was the same compared to the big deasl but with much greater returns.
If the market rents and future demographics pan out, why not buy and hold for cashflow, refi for a higher equity position and/or exit for appreciation in a few years? Use the BRRRR calculator to compare strategies. Use more OPM to gain more CoC and ROI.
Your numbers look okay, even though a few assumptions are hard to judge from our side, in terms of your DIY input and time to get it done. I just felt like I should nudge you to consider doing various calculations to compare if a deal might be ripe for your entry to passive oncome.
Thank you for the input! Yes, this triplex would be financed via hard money, BRRRR'ed and will be utilized for a buy and hold for passive income. As of right now, all the properties that I'm looking for will need work. (Listen to enough of the BP podcasts and the smell of cat pee starts to sound like a good thing) Adjusting the ARV is a bit tricky since this is deal 1 and I wasn't sure.
Thanks for the tip of running the deal again to see if it's truly ripe. Cheers Ken!
Post: [Calc Review] Help me analyze this deal - Did I Do This Right?
- Sunnyvale, CA
- Posts 27
- Votes 12
Hello BiggerPockets Friends!
I just went PRO this week and decided to take advantage of all the great BRRR tools provided. I ran this report under the context of getting a hard money loan and following the BRRR strategy. If you guys could help critique and call out anything that you saw that didnt make sense, it would really help my process on fine tuning the numbers. Thank you!
*This link comes directly from our calculators, based on information input by the member who posted.
Post: Cities in America with the WORST Landlord Tenant policies
- Sunnyvale, CA
- Posts 27
- Votes 12
Originally posted by @Brian Garlington:
Richmond, Ca in the San Francisco Bay Area has ALL of y'all beat. I provided a link because I know you won't believe it....but if landlord takes a rental off the market....I.E. sells their own rental property, and if it's at least a 2 bedroom place, they now get to PAY THE TENANT up to $16,100.00 as a relocation fee! I heard about this from a coworker last week....her and her boyfriend had only been living in their rental in Richmond for 18 months.....about a month ago the owner told them that she is selling the property so they will need to find another place......last week my coworker came into work VERY happy because she said the owner surprised them with a check for $14,000! She said this was a relocation fee! My co-worker said her and her boyfriend knew absolutely nothing about this, but apparently some landlords have tried to hide the news from their tenants....and been FINED if it's found out they didn't pay the tenant a relocation fee.
Needless to say NONE of my rentals here in the Bay Area are in Richmond.
San Francisco can be pretty bad as well. There are blacklist laws that protect a tenant in the case of an eviction (painful process). Article Here. Unfortunately due to the strict tenant rights laws, there are "Professional Tenants" that know the laws very well and essentially live rent free as they manipulate and swim through the legal system.
Post: New Investor Looking For A Market To Get Started In
- Sunnyvale, CA
- Posts 27
- Votes 12
@Michael Fucillo I'm just starting out as well. Did all the homework in search of an American city that made sense and I landed on Ohio. I read the Bigger Pockets "Ultimate Beginners Guide" and even as a practicing realtor, I found it to be super helpful. How's your search in NJ going?