All Forum Posts by: Aleksander Dabrowski

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Hey BP

My Wife any I are interested in getting a vacation home we can use once or twice a year that will pay for itself (hopefully). i am just trying to play with numbers on this one, as the listed price is $100k higher than my analysis, but I would love your guidance surrounding the numbers I am using to see if im crazy anywhere or even too conservative. i assumed $150/night and 50% vacancy, assumed i charge guests for cleaning and added the airbnb 3% fee.

It clearly states hat it is a "mechanics special" but the pool is great and updated. I would be interested in full gut to a nice remodel, maybe raise the ceilings a bit but what do i know.

Thanks in advance for your thoughts!

thanks for the feedback and i appreciate your thoughts joshua. keep on looking  

sycamore duplex

Hoping to find some insight on my analysis process. Been looking for properties for a first deal to hopefully do a BRRRR and am getting to the point I almost ignore the listed price to see how low I need to go. That number tends to be shocking to say the least, so I can only imagine the response a seller would offer.

If anyone can take a look at the analysis, I hopefully entered properly, I will really appreciate it. This property is listed at $74,000 and I had to bring it down to $25k with $20k in rehab to get $150/unit cashflow. I was hoping to get all money out and in this case I still hadnt. Insurance is estimated based on other quotes I got from an agent, though slightly better properties. Honestly, I even think the rehab estimate is low.

Am I being overly conservative on calculations of my deals, crazy, or just havent found the right property?

Any help and honest criticism is very welcome. thanks 

Just wanted to post a follow up to this discussion because I finally closed on a HELOC and wanted to share so hopefully this can help someone else. After connecting with the lenders everyone suggested I was about to go with CreditUnion1 but actually went with PenFed CU in the end. I checked them out because I have my truck loan from them and they sent a perfectly timed marketing piece so I checked on it.

I chose them because I was able to get 85% LTV on an interest only LOC at 4.25% which was pretty impressive to be. No closing costs but i did have to pony up $325 for the appraisal. This fit with what I was seeking to get access to as much equity as possible and my thought was that interest-only is appealing for the few months a property may be in rehab mode and not providing income. I could have gone 90% at I believe 4.5% if i hadnt chosen interest only.

Now that I am getting the dollars lined up I need to find that first property!

Thanks everyone for the help and suggestions

Thanks for the feedback. Seems to me the bottom line is buying right. I guess there is always an excuse when prepping for the first move, right?

Might it be a mistake to purchase a property with plans to brrrr if you anticipate a market decline?

Have been studying and listening to the podcasts to get us pumped to go and we have committed to doing our first deal this year. I've been toying with the calculators and reading here every Chance I have and loving it all because I feel more ready daily. just trying to get past the hurdle of the fear of the first deal and keep coming up with this nagging question with all the talk of a potential bubble. 

Let's assume there will be a decline, though I doubt to 2008 levels. Would the brrrr calculator lead to a good enough purchase to cushion a decline? Would anyone suggest adding a cushion(lower offer price) to their analysis ? Am I just a newbie? Haha. Thanks in advance for the input. 

Thanks for the quick replies. That is helpful. Any thoughts on the no cost options? The ones I've found seem legit but I'm curious if there is another cost that is hidden. Perhaps any suggestions on lenders I should look into?

Hi. This is my first post as I just realized my I tried post never went out. I am really looking forward to connecting with you folks in here as I have recently learned so much. Anyway, I want to open a heloc on my home just to have available as time goes on and I begin my real estate investing. I am in the northwest suburbs of Chicago and looking for the smartest way to access as much equity as possible. I am leaning towards the no cost options for obvious reasons but am curious what downsides I face. A few lenders have higher max caps on interest between 18-23% which is important but in reality I am not sure if that is a main concern as much as current rates and costs. Also, we just refinanced and had an appraisal done so I am curious if that can be used. I look forward to your help as I want to get it done quickly because who knows where rates and the value of my house will go. Thanks in advance!