All Forum Posts by: Bryan Ellis

OK, still trying to get a handle on this here but I've got the next possibility. This one isn't under contract yet but here is how it looks.

Purchase price is 45K
Rehab needed is 40K

5 units
projected rent (Section 8) at 525/unit or 2625/mo for 31,500/yr. separately metered for heat/electric-city trash/water/sewer is $120/quarterly. Property also has a 2 unit garage in the rear that also needs repairs (undetermined amount at this time) that rent in the area for 100-150/mo.

So I think the questions are: Can you do a hard money rehab loan on a 5 unit easier than on a SFR? How much cash should I expect to put into this. Assuming we're talking 85K for purchase rehab and that I get the price down to 40 so that covers the closing as well.

If I figure the net income at 16,665/year (gross-5% vacancy-10%short term maint-10% long term maint-8% management fee-sewer/water/trash-taxes) then the ARV of the property should be in the 166,000 range. So I'm at 55% LTV on the ARV here from what I can see. Am I in the ballpark on this one or am I way off again?

Tom, I had my realtor run a CMA on the property and the results came back in the 199-220 range. I'm figuring 175K for the quick sale price. Purchase for 95K with 25K rahab so its at 70%. Not perfect but I need to get a few done for cash flow.

Exit strategy 1 is resale, 2 is refinance and lease option. Estimated repair time is 60-75 days (must connect to township sewer line so the time will be somewhat up to how fast the township can move with those permits etc. The rest will all be done.

So I'm feeling fairly frustrated with hard money at the moment. Does anyone have an experience with a lender that actually returns phone calls and gets back to you? I'm finding that there are so many that just ignore phone calls and at least one of them has sold my information to spammers. So far its a very frustrating process so I'm looking for any advice on good hard money lenders (that work in PA)

Thanks Bill, I have lots of questions, starting with how to fund a deal.

Thanks Peter, I tend to find that the issue isn't that I don't know its that I still have to make the silly mistake (like doing the rehab myself instead of hiring it out etc)

Thanks for the welcome Jon, I'm looking forward to diving in and meeting some people around the country.

Hello BP, my name is Bryan and I'm a real estate addict.

If there are mistakes to be made as an investor-I've made them. I won't say that I'm done making them but they won't be the same ones again. I'm currently looking for some lenders who loan in the 65-70ARV range without credit checks, primarily in the Pennsylvania market.