All Forum Posts by: Chris P.

I have been working on this deal for a little over a month, and i have analyzed this multiple times. My issue is that while the cash flow is there, the ltv is not, and the unknown repairs that will be required by the city during the sale inspection has made me question moving forward. The biggest pro to this deal is that the seller will owner finance for 5 years, a major perk for me as i only have so much capital and elders are hard to come by with deals in this price range.

Any advise or insight would be appreciated.

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

I am new to real estate investing, for the most part, I have two properties that I acquired by house hacking and then converting to rentals. I am currently looking to expand my portfolio and network especially with active investors in Michigan. I am concentrating my time on deal analysis and looking for practical funding options. This is the hardest part to me as most of the options I can find are for flippers. My plan is to build a cash flow portfolio that will allow me continue acquiring properties. I would love to BRRRR properties as I have skilled labor experience and have completed a number of remodel projects on the side. I only have in the area of 25k to start with so any ideas or current investors needing someone that is hard working to help them expand, please reach out.

please email me more information at [email protected]

IF this is still available can you please send the proforma to [email protected] 

Thank you

Please email me information at [email protected]

please send details to [email protected]

@Michael PearseI understand the capital tied up in the properties and that limiting me from purchasing other deals in the immediate future, however, the cash flow that these three units are producing, I would need to put at least as much if not more capital into three or more other properties to get the same amount out. So I guess in the end my answer was all based on the cash flow of the property, rather than the equity. And after sitting down with the numbers again, my initial capital investment is returned in just over 38 months based on the most conservative numbers. 

I will update as the process moves forward.

@Jeff Kelly ,

This is the bigger pockets calculator spreadsheet. I copied and pasted it. Not sure how others do it on here, but that's what I did. I do have another analysis calculator I use, but I prefer to use the BP one. 

Ok, so after a series of setbacks I have been able to negotiate a better deal with the seller. I offered 70k with 30%down owner finance at 5% interest with a balloon at 3 years. The offer was accepted and is pending a walkthrough and financial records evaluation. While I do feel I am overpaying based on the arv value of the properties, I am comfortable with the price due to the owner finance and positive cash flow that the property generates. According to my analysis, the property should be generating just over $500 a month cash flow from all three doors. 

Ok, so after a series of setbacks I have been able to negotiate a better deal with the seller. I offered 70k with 30%down owner finance at 5% interest with a balloon at 3 years. The offer was accepted and is pending a walkthrough and financial records evaluation. While I do feel I am overpaying based on the arv value of the properties, I am comfortable with the price due to the owner finance and positive cash flow that the property generates. According to my analysis, the property should be generating just over $500 a month cash flow from all three doors.