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All Forum Posts by: Bryan Melius

Bryan Melius has started 2 posts and replied 11 times.

Post: [Calc Review] Help me analyze this deal

Bryan MeliusPosted
  • Investor
  • Brevard County, FL
  • Posts 11
  • Votes 5

Ray, I appreciate your time taking a look at analysis and GREATLY appreciate you reaching out in reference to your lender recommendation. 

I messaged you back so you'll definitely be hearing from me tomorrow!

Post: [Calc Review] Help me analyze this deal

Bryan MeliusPosted
  • Investor
  • Brevard County, FL
  • Posts 11
  • Votes 5

Matt, thanks for taking a look! I'm not a huge fan of doors, no slab for patio area, and I'll be painting the exterior for obvious reasons. 

I agree further analysis will be needed and I ran the numbers a few different ways, but overall it seems like it'll be a decent property for minimal money down. 

Your comment made me feel more confident so I appreciate it, but spare no constructive criticism.

Dawn, Brevard County is the #1 place in the country to invest. Once an area is listed all over the internet as being #1, it is far too late.

Unlimited amounts of potential and already it has blown up with future plans that are already approved for tourism, big time DOD Contractor and Space Industry, residential, health care, educational institute, and commercial development/ expansion. JOBS! Roads and traffic issue Brevard has always had is being alleviated. Cape Canaveral's port and Melbourne airport will be premier locations and sources of revenue.

Growing up here, and traveling around the country/ world before settling down in DC made me appreciate the power that "Big Government" jobs have to influence the surrounding economy and real estate market. I actually left a high paying job and took a big pay cut knowing that the country's biggest DOD Contractors moving from expensive states to find refuge in the cheap and state tax free state of Florida was going to impact the economy in a way that will reduce the impact of a recession or market crash (Not too many places or impacted as hard as Florida and Brevard as a whole). 

Satellite Beach is the #1 Safest City in Florida and Brevard somehow beat Orlando out for tourism this year, more than likely due to NASA site coupled with the beaches.

Property values already sky rocketed, but you need to get started investing now before the values reach West Palm, Ft. Lauderdale, and  South Beach home values!

The retired and millennial generations are looking to RENT! And due to jobs and baby boomer generation retiring and moving to the affordable area by the masses, your losing out every day that goes by if you're not actively working to invest!

Luckily the affordable home values still make it a much better place to invest for years to come.

Just think, if the worlds richest people like Elon Musk and Jeff Bezos find Brevard County suitable to invest billions at, along with the government and their contractors, then they must have done some type of due diligence that makes sense to come here to invest.

Feel free to reach out to me and I can provide you whatever info I have to prove that it makes sense to invest here!

Post: [Calc Review] Help me analyze this deal

Bryan MeliusPosted
  • Investor
  • Brevard County, FL
  • Posts 11
  • Votes 5

Before thrashing the whackey numbers, please read so I can provide more info.

Ok, so first time utilizing the VA benefit (Disabled 40%+) for this single family home as a buy and hold, and here are the following details.

Due to the VA having such strict requirements, I am looking for a turnkey property to speed up process and quickly get tenants in with little to no time or money going into repair/ rehab.

Loan details (I am preaproved, but these numbers are pretty accurate and I elected to put a high interest rate so anything lower will be a bonus):

Loan Amount: 170k

Money Down: 0% (Hence the high COCROI numbers)

Lender points charged .85

Interest: 3.65

Closing Costs: 1% Earnest Money ($1,700) + $800 (Appraisal, Inspection, etc.) $2,500 

*I am close to Title Company which is giving SUBSTANTIAL deal to seller if they choose to use them

I understand this may seem low to most reading, but from what I understand from what lender advised me, VA Loans with 40%+ benefits will typically cover several fees and the closing costs, and sometimes it is often times covered by seller.

The home is listed as 175k and is completely renovated (ie. 2019 new metal roof, upgraded plumbing, wiring, tile flooring, paint, new kitchen, vanity, bathrooms, HVAC).

The property is very popular on all MLS portals and has been listed for only a few days.

The location is GREAT and surrounding similar home values are above the listed price 170k. The area is BOOMING with massive amounts of jobs and retirees moving into this Space Coast Florida neighborhood surrounding by massive tourism, residential, LARGEST DOD Contractor and Space Industry, and other industrial developments that have already expnded greatly with pre-approved  expansion to take place over next 10 years.

*If you are looking for a partner with his finger on the pulse on the RE market, reach out to me!

Income: The rental rates are $1600, but I will be living there with my brother and tend to stay at my other home with my fiance, and it has already been agreed that he will be paying $1,500 rent for first year, plus power bill, and after that I plan on renting the home for a few years ($1600 a month) while I decide what to do with it. 

Expenses: 

Due to the no money down maneuver I am making, the monthly payments are pretty high, but I don't mind since there is no PMI and it is a nice way to acquire a property without having a ton of cash on hand at the moment.

I still accounted for management despite taking on property management, but only a 3% rate for my efforts. I have time allocated to manage property, but plan on hiring a property manager at year 2 since I foresee future tenants being too much to manage once brother moves from property. 

I am taking care of lawn maintenance, but accounted for $50 month expense for gas and other misc. expenses.

Cap rate is much lower, for now, (4%) because all big expenses are new (2019) and metal roof is brand new and they last forever. 

Maint/ repair is accounted for at 5%.

P&I, Insurance, water, sewer, and trash are accounted for.

The cash flow is only projected at $167 (not Turner's recommended $200 for SF), but I am fine with it since the home is a turnkey property and the numbers and rent rate is low balled on this analyst to expect the worse.

Anyone with experience using VA Loan have any insight on using the benefit to acquire an investment property or any investment property analyzing pointers that can assist me or bring to my attention any mistakes that are being made would be GREATLY appreciated!

First time using VA AND first time using BP Pro Calculator to analyze properties, but so far I enjoy both so far. Calculator isn't as detailed as my typical analyzing, but the method was primitive, time consuming, and chaotic to any other reader beside myself. Thanks BP!

Post: [Calc Review] Help me analyze this deal

Bryan MeliusPosted
  • Investor
  • Brevard County, FL
  • Posts 11
  • Votes 5

View report

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

Post: [Calc Review] Help me analyze this deal

Bryan MeliusPosted
  • Investor
  • Brevard County, FL
  • Posts 11
  • Votes 5

View report

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

Post: Should we wait or go for it?

Bryan MeliusPosted
  • Investor
  • Brevard County, FL
  • Posts 11
  • Votes 5

@Lindsey Spivey are you looking in the Cocoa area?

Post: Looking for a meetup in Brevard, FL? Join us!

Bryan MeliusPosted
  • Investor
  • Brevard County, FL
  • Posts 11
  • Votes 5

I am interested in attending your meetup! Meeting time and location still the same?

Post: Making offers on houses but the real estate agent isn't happy

Bryan MeliusPosted
  • Investor
  • Brevard County, FL
  • Posts 11
  • Votes 5

I also agree with the consensus.

In my very short experience working with a few different realtors lacking property investment experience, it was nothing but a headache.

The MLS listings were not as promising or appealing as I thought they would be. The realtors attitude when providing a lower offer on the asking price with plenty of paperwork to justify the offer is still negative, and I just flat out dislike needing to move at their speed or depend on their effort actively looking for an investment property. Most realtors' interests are focused on their commission they make working with families looking for their perfect turnkey single family home with a seller who is looking to sell their property for top dollar in this hot market.

There are many pros to using a realtor. Their knowledge of the market, access to property's seller to retrieve information about the property, and access to a variety of lenders.

Brandon Turner did mention the pros and cons of using a realtor in his book on rental properties that really struck home for me.

I believe I have yet to find the right realtor for my area, but I will suggest the alternatives such as Craigslist, wholesaler (well worth their fee), driving for dollars, and direct mail, which have all proved to be a game changer.

I was hesitant to try these methods out at first, but I believe you will find a larger variety of deals it appears you are looking for.

Do not let the realtor deter you from your goal or diminish your standards. Motivated sellers and other good property deals may not resort to using an agent for several reasons.

I never trusted Craigslist for anything, but found it to be an easy and quick way to find properties and make offers if you wanted to try searching in your local area in your free time to get an idea.

Best of luck to you!

Post: Prior tenant left an abandoned vehicle

Bryan MeliusPosted
  • Investor
  • Brevard County, FL
  • Posts 11
  • Votes 5

After advising the owner to move the vehicle or it will be towed, contact tow company and have it removed from your private property.

Save that text message or email to the previous tenant, especially if they acknowledge they received the message.

I would also take a precautionary measure to photograph where the vehicle is located and photograph the condition it is in prior to the tow.

I would obtain the name of the wrecker operator, tow company, date and time the vehicle was removed as well just in case the tow company does anything funny with the vehicle after it is removed and impounded in their lot.

I would probably just let the vehicle owner know what company removed it and provide tow company with vehicle owner information.

I would imagine Texas is similar to Florida where you would be able to easily make the call to get the vehicle removed from your private property, but the additional steps would help you out on the off chance they go after you civilly for having the vehicle removed, any damages as the result of the tow, or business methods the tow company may employ in an attempt to make money from the vehicle owner for the time they have the vehicle on their lot (who knows with tow companies).