Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 7 years ago,

User Stats

6
Posts
0
Votes
Andrew UMphrey
Pro Member
  • Investor
  • Pottsville, PA
0
Votes |
6
Posts

Our first offer - Any suggestions?

Andrew UMphrey
Pro Member
  • Investor
  • Pottsville, PA
Posted

My wife and I just made our first offer on a bank-owned property.  We were dragging our feet after viewing the property twice (once with agent, second time with contractor and agent).  Got a message today that another offer was coming in on the property so we quickly put in our best offer.  From what we can tell, once this property is all fixed up it will be a cashflow monster for the price.  Details:

Property Type: Multi-family (3 units + separate garage)

Offer: $25,000 cash (can't find a mortgage for that low)

Estimated Rehab: $30,000 (2 units cosmetic, appliances, and flooring - $15,000, 3rd unit - major repair - $15,000)

Total income: $2,000 (Garage = $250, 1st Unit - 3 story, 2BR/1Bath = $675, 2nd Unit - 2BR/1Bath=$500, 3rd Unit - 2BR/1Bath = $575)

After Repair Value: Range between $65,000-$75,000

I was hoping to only put 25% down on the property and do a mortgage/loan but can't find a mortgage for that low of an amount. I currently have $20K readily available to use for purchase/rehab and a few options to come up with the rest. When I run the following numbers I am coming up with over $825 in monthly cashflow (accounting for 15% vacancy, 10% capex, 10% repairs, 10% ins, 8% management) and 17-18% Cash on Cash ROI.

What do you think?  Are there things that I may be forgetting to look at or think about??  Thanks for any and all advice!

  • Andrew UMphrey
  • Loading replies...