All Forum Posts by: Abulele Woldulele

Hi guys,

somewhere I read that a good rule of thumb for changing brick foundation to concrete foundation is $500/linear feet.

Does this mean the perimeter of the building in feet multiplied by $500? In that case, does it mean that foundation work doesn't depend on how tall your building is (number of floors/ stories)? like if there 3 stories, vs 1 floor unit? How do I interpret this estimation technique?

Can you share your estimation technique if you had to roughly gauge changing brick foundation to concrete foundation. A certain margin of error +/-10K is fine.

Much appreciated,

A

Thanks @David Carte I see your point.

Thanks @David Carte Investopedia says otherwise: http://www.investopedia.com/terms/o/one-percent-rule.asp

Hi guys,

I have 3 questions about the 1% rule for rental properties. Is the 1% computed on the asking price or is it calculated on asking price minus down payment?

Consider the following scenario:

Asking price = selling price = 100,000

Down payment = 20% = 20,000

Base = 80,000

1% of 100,000 would be 1000

1% of 80,000 would be 800

My second question:

Is there a similar rule for residential properties?

Last question:

How do you account say $20,000 of fixing up the property to make it rentable?

I'm considering to buy an old house built in 1920s - victorian. I plan to live in it. It has brick foundation and at some point the brick was topped/covered with concrete (process called "saddling")

Now in order to properly quote the offer, I need to understand how much work needs to be done on the foundation. Basically changing the brick foundation to concrete foundation.

I'm sure it is a case by case analysis but I wanted a range just to give me a ballpark on the cost of foundation rehab for the property.

Property info:

Area 2100 sq feet, duplex,

unit 1 (upper unit): 3 bed 1 bath

unit 2 (lower unit): 2 bed 1 bath

The property is in North California. Any pointers, websites, estimation-techniques,  estimate numbers, blogs, suggestions or personal experience,  that is shared is highly appreciated.

Thank you.

Hi guys,

I'm new her at BP. I'm pretty good with numbers. I want to get to understand the math behind real estate investing. I want to understand all dimensions of the equation from feasibility of a Real Estate investment given a realistic market trends to tax benefits, to rent implications, to worst case and best case analysis...etc.

I want to do this in an orthodox way. Do you know any course that I can take (coursera, open-course-ware or something similar, free would be ideal). Or any blog post that covers depth and fleshes details is also good.

Thanks, and Stay Strong,

Abiel

@Jim Blackburn is 4.1% too high for residential property? I'm in norther california, bay area to be specific.

Thanks for all the responses guys, just to clarify - this is not investment property. This is residential for me to live in.

Hi Ray   thanks so much for the idea, I'm a newbie here.... my question to you is how can I afford to pay the mortgage with zero down (or less than 90K down). My plan is to buy and hold, so it's my best interest to keep my monthly expenses as low as possible.

@Ray Harrellundefined

Yo BP peoples :)

I recently got an loan offer package that details (similar numbers)

Purchase Price, Down, Time,      Monthly Payment 

$900,000         10% down ($90,000)         30 year fixed      $4975/month

$900,000      20% down ($180,000)    30 year fixed   $4474/month

With 10% down I'm getting 4.125% interest, no points.

With 20% down I'm getting 4.000% interest, no points.

I used online-proxies but I found number with "points" included in the estimated loan package (notice how my loan package above has no points). So I wasn't able to compare the actual loan package listed above to what I got online. What are "points", how does it alter the whole equation. Where can I read about it? 

In general, how can I assess if a loan offer is "good", "meh", or "bad"?

What are my biggest bargain points?

Much appreciated is your advise, any inputs, pointers..etc.