All Forum Posts by: Daniel Hemmings

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I adjusted the rent for this two family house from 2300 to 2650 with anticipated renovations. Aside from that, how does this deal look?

Ok great will do. I am still on the lookout for a reasonable hard money lender that has good rates, if you have any suggestions or strategies please let me know.

@Zach Westerfield Thank you Zach! this is a BRRR deal, isn't much equity left in the deal if i'm buying it for anything over 240k, itll be valued at median price 477k. supposedly this is a cash flow opportunity as said by the wholesaler, the house is currently vacant. I am looking to go the hard money route. I'm sure it has to be a way I can do hard money and be able to hang on to the property as I get tenants by using their money to pay monthly expenses as well? this is definitely a big project the first to floors need to be renovated and the 3rd floor needs a total gut renovation. they said 140k renovation but I put it up to 170k and even 200k in my calculation just for room. If this deal is based on the refi on the back end then its a great investment, I just feel I did the calculations and all the signs say its a bad deal on the front end if that makes sense lol

Hello BP world, 

Im analyzing my first potential buy. the property is off-market 2 family home with a possible 3rd unit on top. The house wholesale price is 299k. Estimated rehab is between 140k-175k,ARV 470k-500k. It has a active oil tank as well. I decided to run my numbers to see if this makes sense. rental income, if all floors are occupied is $5050/MO but the mortgage and expenses are $4300 a month not including money aside for repairs, vacancy etc. on the initial testing,monthly cash flow would be $250ish. 299k just won't work, I came back to the wholesale guy and he said the owner owes 235k and wants 45k on top of that and they won't entertain under 280k.I did the 65% rule and even with that I was over budget 100k. I changed the Purchase price to 240k and the CoC ROI before the refinance is 4.4% with $740 monthly cash flow, purchase cap rate at 13.3%. After the refinance is when the deal looks sweet with 17.6% CoC ROI and over 1k/MO cash flow. Two questions, should you do a deal when the initial rental period ROI is low but the refinance after makes up for it ? and is this just a deal to walk away from because even at 235k with an estimated 140-175k to go into it, the 65% rule wouldn't work. let me know your thoughts