All Forum Posts by: Armel Bayot

Hello my name is mike. I am from nj and the nyc areas. I am getting into real estate for the potential financial benefits it has. I’d like to take care of my pops (has ms) but if he doesn’t make it in the next few years I want to help out my nieces and nephews and my families future. Bye the way happy halidays! 

@Harman N. This!!! Leveraging a massive network is yet another reason why BP is so valuable. 👏👏👏

....why though, @Armel Bayot Margins are so tight to begin with and as @Remington Lyman indicated you've already underestimated the rehab.

Biggest mistake I made going into my duplex was thinking it was ready to go...after all, it showed very well. Big mistake. I've spent over $13,000 in a little over a year in replacing, fixing, and handling some issues. Totally blew out my CAPEX and maintenance budgets, which I thought I was conservative on when estimating.

Razor thin margins, no value in ARV, underestimating rehab...you're stacking the deck against yourself.

@Armel Bayot I walked this property for one of my clients yesterday. I can share the videos with you. You have underestimated the rehab value.

@Harman N.

You're going to refinance from 77,000 to 85,000? I don't think that's worth it to you, at all. I don't get the reasoning. It looks like your going to hard money loan, but that only makes sense if you have a ton of room between acq/repair and ARV.

Your repairs and CAPEX are low - I'd go 10% for each.

I also think you will struggle to get 4% interest rate on an investment property. More than likely you'll get 5.5% or higher.

I see no set asides for water/sewer?

@Armel Bayot I do not know where this is located but many jurisdictions reassess property value when it is sold so if the assessed value is $50k and the current owner is paying $943 if you buy for $90k+ and get reassessed your property taxes could almost double.  Based on the purchase price I'm guessing this isn't in CA, but this type of property tax predicament is a huge deal in CA because of prop 13.

@Armel Bayot hard to say without knowing where it is and what condition it is in, but your ongoing analysis doesn't look too far off you may be a bit light on the property taxes but the rest looks reasonable.