All Forum Posts by: Becca Pariser

Awesome Would you mind sharing what community bank you used?

I'm using Propstream to search off-market failed listings. I've set my status to "Fail" but I'm curious why for so many of these, the Days on Market is less than 10 - some are 1? Does that mean someone else scooped them up? Or did they really only go on the market for 1 day?

A listing came up on the MLS in our neighborhood for a great duplex. The listing says "take advantage of seller financing with an attractive 5% interest rate. A minimum of 20% is required."

I've never seen an MLS / seller financing combination. Has anyone seen this before? Has anyone experience with negotiating out of the 20% down? Should we have our agents involved?

Quote from @Tim Herman:

@Becca Pariser I use 8% vacancy when analyzing long term. MTR rentals are going to be determined by contract length of your applicants. How long will it take you to rerent to another MTR tenant. Is it going to take a month between tenants every time a contract expires. How did you determine the rental price. I looked at some rentals in the area that were bigger and rented for less. Weren't furnished but 2 beds and $500 cheaper. You are getting a 300% return on a 50k rehab. If your numbers are accurate this would make a better flip.

Thanks, Tim! I updated the report based on your feedback. I'd love to get your thoughts on how I could get to INF on the BRRRR?

Quote from @Tim Herman:

@Becca Pariser How did you arrive at 5% vacancy. That is the same as each tenant staying 20 months between turnovers. Do the contracts with the hospitals go 20 months. Your property tax will go up. If 275k is $700 per month and the arv is 486k there will be quite a jump in taxes. Where did you find a contractor that can do a project for 50k and get an additional 150k in equity. Did you run budgets for the repairs and capex. Hard to give advice without knowing more about the property. Is the $50 misc for grounds maintenance. That seems light.

Hi - thanks for this review! I really appreciate you helping me get better at this. Answers below:

1. I used 5% because that's what BP recommended in the bootcamp? Adding 5-8% for vacancy each month. What number do you use?

2. Good to know about taxes - I didn't know that. 

3. I have a GC who walked the property with me. But is the equity too much of a jump? Comps in the area are $450k but this one is listed for below $320k and as-is

4. I added in 5% each for repairs and capex (as advised by BP)

5. It's a Duplex - each side is 1/1

View report

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

I'm curious if folks would do this deal? We ran the numbers using terms from our hard money lender. The goal of this property is medium term rentals. It's a 4 minute drive to a Level 1 Trauma Hospital.

Quote from @Eric Greenberg:

At a quick look spending $100k on a rehab whoch is a fairly heavy lift just to have the ARV $20k over your investment is much too tight. Your projected rents dont cover your monthly costs either.

You are getting a 4.5% loan? The rehab is 6 months and you are going to refi in 8months? Have you confirmed with your bank on that timeline? 

Thank you - this is exactly the type of feedback / coaching I was hoping to get here! 

To answer your questions - 

1. I put in a placeholder for 4.5% based on a lender in my area that said rates started there (calling today to confirm)

2. Do you have a sense of what might be a more reasonable timeline? I haven't walked the property yet but am hoping to do so this weekend. 

3. I agree that $100,000 feels like a lot, I just don't have a sense yet of what the construction costs would be, so went with a relatively high number. 

Hi there! Getting used to the BRRRR calculator and I'm hoping someone can help me understand if I'm inputting this correctly or if I'm missing information.

View report

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