All Forum Posts by: Anthony Heatley

@Alice Thomsen Hey Alice, I would use a HML to buy the house. I assume I would buy through the realtor unless I could deal with the seller directly.

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*This link comes directly from our calculators, based on information input by the member who posted.

Hey BP,

I understand most of the metrics on this page. I double-checked my numbers.. but for some reason I end up with negative cash flow and a negative ROI. Can someone help me understand why this is? I only put out a few thousands for the hard money, and after refinancing I'd only have $700 left in the deal. What am I missing?

Hey BP,

I was looking through properties when I noticed that a 2 block radius of houses had 12 houses for sale. All priced at abobut 95K. The rest of the homes in the surrounding area are listed at 150-175K. I went to trulia and turned on the crime map and there are darker blue spots just in and around that area. After some more reading, some listing sites say they're townhouses, others say they're multi family homes. The listings only have 1 photo too. It seems like there are some red flags, but I'm hoping can provide some give me some insight into what this might mean?

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*This link comes directly from our calculators, based on information input by the member who posted.

Good evening BP,

If I were to buy this property, I'd use a 203K loan. I checked rentometer and saw that I could comfortably get $1,000 per door here. All things considered, I wouldn't call it a great deal. I'd get a $170 discount on my rent though. It's in a good location. Near markets and restaurants. It's also 3 miles from UTA.

I'm hoping you can give me some feedback and tell me if I fudged on the numbers somewhere. The owner is asking $305,000 for the property so I doubt he'd accept $210,000 due to its good condition. The only place I could imagine adding value is the landscaping. Maybe update the cabinets and paint, but I don't know how much value that would really add.

I'd appreciate any feedback or suggestions. Thanks!

@Aaron Nannini Thanks for the feedback, Aaron. Why is it harder to rent out properties in the winter months?

@Account Closed I disagree. Learning is never a waste of time.

@Jason Hirko I ran these numbers assuming that I could get a 100% loan from a hard money lender. The house is in East Arlington. I don't know how to estimate rehab costs yet so I was just adjusting the numbers to figure out what would make this a good deal. Just trying to learn how to use the calculator properly.

@Laura Kayes Is it a normal practice to budget for a PM company fee even if you're self-managing one house?

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*This link comes directly from our calculators, based on information input by the member who posted.

I imagine that getting this house for 50K is unrealistic. But I arbitrarily chose a 35K rehab budget because as you can see in the photos, there's work that needs to be done. Can someone who is familiar with the Arlington, TX area tell me if these are realistic numbers?

The ARV and projected rental rate were based on what other homes are going for in the area. The expenses and projected growth were arbitrary choices too. Is there some way I can know these numbers without having owned a property before?

I'd appreciate any advice on this analysis,

Thanks guys!

Hey @John Leavelle. Thanks for taking the time to look at my analysis and giving me some feedback! I'll respond to your comments in order.

1. You're saying that under no circumstances would a HML allow you to roll the points into the loan?

3. I didn't include utilities because it was my understanding that most people renting or buying a home tend to pay their own utilities. Do you know of a way to estimate utility costs in any given state? Also, I don't understand why you said this area is where you have problems with the BP calculator.

4. I understand the math here but I still don't understand what your problem with the calculator is.

5. I appreciate your input on the cash flow analysis. I'll definitely start taking these things into consideration when doing my analyses in the future.