Help me analyze this deal

[Tanya Maslach]

Hi all,

I'm new to BP and am trying to start investing in more than SFH one-off rentals. I've been buying and holding for SFH's rentals for 15+ years, but my goals now are Cash flow (70%) and Appreciation/Equity (30%) so I can invest faster/grow more in shorter periods of time.

I ran this: View report on BP as a really rough test for investing in this property (3-plex, but also offers an attached 3-plex for consideration).  I don't know if I did it right, because I prefer NOT to get a traditional loan for my next property.... and I don't know how to estimate (or even GET) private lender loans.

My buy box is;
- Something I can use for long term rental AND MTRs.
- Less than $25K in rehab
- Quick rental potential (<3 months rehab).
- Low crime, low foot traffic
- Access to restaurants, grocery and job (hospital, university, denver tech center, denver downtown)
- COC ~5-6%

My preferred method to buy is Sub-To, so I would like sellers (and agents) who are ready and willing to consider this.
(*Ive never done one, and am scared to death for how I would negotiate such a deal, but it's my preference for starting my new investment strategy)

Questions:
1.  What are you thinking about when you see this deal?
Considering the info I shared above.

2. Are there red flags I should be looking out for?

3. How should I screen the agent who might partner with me on this deal? (I.e. "Jane, how bout if I paid your commission, and ____ would you____?")

Thank you!!
Tanya

*This link comes directly from our calculators

[Tanya Maslach]

Thanks for asking @Account Closed !!   

I've never done it, so don't know:
a. How to find info I need (remaining mortgage balance, mortgage payments) to go in with eyes-wide-open and present an excellent solution to the Seller's problem.

b. How to directly speak with Seller (or add the commission of the Seller's agent into my capital outlay to get the deal OR trust that the agent will even bring it to the seller for consideration).
c. Paper work for the deal
d. How to secure private money or a JV deal to make it happen.

And, importantly, fear around my ability to confidently show the Seller that the deal I am proposing is one that CAN help solve their challenge or problem (once I find out what that is!). 

[Tanya Maslach]

Thanks @Account Closed  -- Yes absolutely.  And it's why i'm HERE in BP.  The "learn from someone experienced" part.  I joined believing the community was here to help its members make such decisions, (smartly), and in some cases, partner together to improve the probability of success (and learning for the newbie!).

I'm also learning quite a bit from the Pace Morby community as they are very tactical, less theoretical, and operationally-focused.  They offer so much in all the paperwork, scripting, and more to remove the problems you mention so the "error" part of trial and error is mitigated.

[Tanya Maslach]

Thank you @Account Closed!! . I appreciate this.  Very kind.

I think it's like most of my experiences in corporate.... do your due diligence! ;-)
Whether it's here, or in a job-search, or in a real estate deal.... Due diligence! ;-)

Thank you so much.