All Forum Posts by: Adrian Fajardo

@Kenneth Garrett I see. That does make a big difference. I'll get more accurate numbers and see if it still works out. Unfortunately, a PM is a must for me. I have a full-time job that sometimes makes me work long hours in short notice (US Army).

I am aware of other advantages. I should mention that my goal is to replace my salary with the property's cash flow. 

Thank you again for your input. I'll keep it in mind for my next evaluation.

@Kenneth Garrett Thank you for the insight. You are right on the insurance. I forgot to change it as I was using a 4plex quote. I intentionally used 15% for the vacancy. In normal circumstances, I would also use 5%. But during these times with the pandemic going on, I was trying to be more conservative.

You are correct sir about being a SFH. I will verify with the utilities.

That's the question. Did I do all this work to cashflow $100 with 25% equity? Or can my time, money, and effort be better spent on another property? 

@Jeremy Zollin Thank you for your input. It's a single-family home. The spreadsheet I created is for a 4plex but I only used 1 row. It will need a new roof and HVAC that's why I only put 4%. I usually set aside 10% for CAPEX.

@Brian Ellwood thank you for your response. I'll be blushing when I put in this offer. The seller is asking for 100k and my offer is 40k. This one is an MLS deal. I first saw it in Craigslist but I also found it in Zillow.

Hello BP community! I hope you are all doing well. I need your input on this property I'm trying to evaluate. This will be my first BRRR so please feel free to butcher my analysis. It would most helpful if you point out my mistakes and I would be grateful for it.

Here is the breakdown for my calculations:

This is a post BRRR. Here is what I figure the refinancing will look like:

Value: $110,000

Principal: $82,500 (75% of the value)

Interest: 4.25% 

Years: 30

As you can see, I'm negative on the cash flow. Even in the best-case scenario where I was able to pull out all my money, I'm still losing money while having it rented. Even if I wasn't too conservative, using 50% rule + Mortgage payment, I would only still be cash flowing $200/mo.

For those who have done a lot of these, are these typical numbers or am I being too conservative with my calculations? 

Any advice would be helpful. Thank you and stay safe out there.

@Rick Reeder I second @Pete Harper. I've had Isbell for a while and I've had no complaints. 

@Lee Ripma Thank you so much! This is a wealth of info. I sent you a PM.

Thank you for getting back to me. I'm kinda lost in what to do. How do Investors quickly filter out apartment complexes? Do they use a conservative percentage to determine expenses? I can figure out the income part but I'm having trouble getting an estimate for the expense.

@Karen Schimpf Thank you for getting back to me. I will ask for clarification. I could be wrong. Maybe there's no balloon. It's just 18 months on then they add the principal after that.

Hello! This question is unrelated to the main topic but can I ask you a simpler question? 

I called 3 local banks to apply for a commercial loan and their terms are somewhat similar.

One bank says their terms are: 18 months interest-only ARM at 4.25% then 20 year amortized.

My question is, why are there 2 different terms? Is there a balloon payment after the 18 months then the property is appraised again then the value is spread across 20 years?