All Forum Posts by: Andy Tomaswick

Sounds like some good reading material, thanks very much for the feedback Adam!

Hi All,

I'm attempting to understand how to do the rehab estimate for the upfront deal screening process.

It seems like when you're pre-screening deals, you have to have some idea of how to estimate rehab costs even just looking at pictures on a computer.  For example, in his videos on flipping, Brandon just seems to "know" how much to estimate for rehab, but he doesn't really explain how he knows that.

I've read somewhere that something like $15 or $20 / sq ft. is a reasonable amount.   Is that what people normally use while they're seeking out deals?

In a more concrete example, I found a house with a list price of $60K, which was about 1100 sq ft and I think could be sold for around $100K ARV. Can I just say the repair costs would be:

1100 * $20 = $22000

and use that as a baseline for further analyzing the deal?

Thanks in advance for the feedback - these forums are proving really helpful.

Excellent, thanks very much for the feedback Shawn!

Ahh, understood, so it would be essentially a holding cost of $1K a month, with a total of $102K due at the sale?

Hi all,

I'm trying to better understand the math behind how much would be owed to a hard money lender that would fund a potential flip.  I've made up some numbers to give an example of my understanding and would appreciate any feedback on whether this is right or wrong.

Let's say I have a flip that needs $100K for the house and all the rehab costs.  I get a hard money deal with 2 "points" and 12% interest.  It takes me three months to do the flip.  So in total I would be paying:

$100K * .02 = $2000

($100K * .12) / 12 = $1000 * 3 = $3000

$2000 + $3000 = $5000

So in total, I would have to pay back the hard money lender $105K when I sold the house three months later. 

Does that math make sense?  Thanks in advance for the feedback and best of luck for your deals!

Thanks for the welcome! I have already started listening to the podcast and it is indeed very informative.  The amount of information on the forums is almost overwhelming and I think it will take some time to sort through, but I'm looking forward to it!

Hi everyone,

I'm Andy, a engineer and project manager based in Lansing.  I sort of accidentally slid into to my first rental property when I rented my bachelor pad to my former roommate and moved in with my wife (who is in grad school at MSU).  Now I'm looking to get more into intentional real estate investing, and bigger pockets seems like the way to do that.

I'm looking forward to meeting everyone!