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Updated about 9 years ago,

User Stats

12
Posts
2
Votes
Adam Leech
  • Finance
  • Windsor Mill, MD
2
Votes |
12
Posts

Pigtown, how would you go about it?

Adam Leech
  • Finance
  • Windsor Mill, MD
Posted

Hey guys,

I'm fairly new to REI (one property rented to family, looking for another) and I want to get the hang of the analysis. I come from the financial field (used to trade stocks) so enjoy number crunching.

I went by the place today, the listing said it was move in ready at first. Here's what I'm looking at:

O = Original loan amount

P = Principal paid per month - 58,900/360 = 163.60

N = number of years owned - 12 years. Sept. 2003 - Sept. 2015

X = Estimate of loan owed still

O-(P*N*12)=X

X = $35,340 amount estimated still owed on the loan.

  • 50k (at least) to get it in shape.
  • ARV around 120k-170k (wide range because of area). 130k is what the city appraised.

Investors want to buy at 75% ARV - which is 90k. Assuming the loan is what's above, the property can be picked up for 28k or close (banks go for 80% on principle remaining in short sales). After fees, we're looking at $7,728 if wholesaling.

How do my numbers look? Feedback is extremely welcome. I'm more interested in learning from this than making money on it - how and why it would/wouldn't work.

Link the mock up : https://docs.google.com/document/d/15Hqobkb4pPSEeF...

A buy and hold investor might be interested in the area. It's in Pigtown very close to Fells. Right behind the stadium and very close to the casino. This rented for $1500 before with room to improve (investor 2 doors down rents for $2100 with not much difference in house).

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