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Updated almost 4 years ago on . Most recent reply

User Stats

25
Posts
10
Votes
Jona Santiago
10
Votes |
25
Posts

Pls help this newbie with rehab computation & negotiation

Jona Santiago
Posted

Hi BP family. We were under contract for a property near Corpus Christi (1 SFH and a 3plex); 3736 sqft. There was termite infestation in both homes but the seller won't budge when we ask for repairs so we cancelled the contract. Now, the seller reached out to us offering to pay some of the repair costs.

Purchase price: $210K

Repair costs: $48K ($20K for siding, $4300 for leaking pipes, $9K for termite fumigation, $15K to replace flooring)

ARV: $275-$300K

Monthly Rent: $3550

Property Tax: $4774

Home insurance: $5628

Maintenance/Cap Ex: $5K

Property Management: $4100

     Please let me know how you would handle the renegotiation. Do you think my numbers make sense? We are happy with just a cash flow of $150/unit. I will really appreciate any input and may God bless y'all for your kindness.

           Jona Santiago (Austin, Texas)

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