All Forum Posts by: Daniel J.

@John Leavelle Sorry I am just now replying, things have been crazy the last couple days.

Thank you for the perspective and approach to BRRRR! I've never seen someone explain it that way. Using that perspective I relooked at my numbers and solidified 85k. My agent made a verbal offer and they didn't like it very much, certainly not surprising though. It's hard with the extra CapEX and lawn care though. From the sound of it they wouldn't have budged much below the asking price anyway.

@John Leavelle Whould I still plan my offer the same way even though I will be keeping it as a rental? That's my big issue with numbers. With CapEx being so high it swings my numbers quite a bit.

My agent is going to be looking for more accurate comps. 

If the property was in good shape I would say the value probably would be 189k. I am wondering how many more repairs might pop up when the foundation is fixed though.

Rehab timeline would hopefully only be 2-3 months max since a lot of it is cosmetic. They are trying to place a tenant in the vacant unit now, so obviously that would change if they placed a tenant. I would have to wait until it was vacant again. I do have a plan for refinancing with a local mortgage broker. Costs for the loan would just be 5% annually

@Rob Golob It's a deal on LoopNet. I can to that price after figuring out my expected costs, costs of money, rehab costs etc.

@John Leavelle Comps are a chllange due to not having many similar properties in the area. Does 70% still work even though I would be using it as a rental? I'm struggling because my costs seem so much higher than the norm. My best guess is that is because my CapEx is higher due to having 2 buildings, does that sound accurate?

@Ryan Detig I am looking back over my numbers and seeing if I messed a cell up somewhere. I did get an actual quote for exterminator. He's a guy I trust and does my restaurant. The lawn care is a guess, I couldn't get anyone to answer my phone call haha.

@Ryan Detig Those are actual numbers. If I did the level of remodel that it needs obviously a lot of the CapEx and repairs would be pushed off.

I also forgot to included 250 a month for lawn care and exterminator.

@Ian Walsh Thanks!

@Joel Owens Good to know! I thought about PM to give myself more experience for doing it for my own properties. 

@Account Closed Good luck!

@Michael Swan Thanks!

@Michael Kalis Thanks!

@Abraham Anderson Thanks!

@Don Konipol That is true, I do try and take only well calculated risks though.

I am working on analyzing a duplex plus garage apt near me and the numbers seem too extreme to make sense. I finally saw it today and it needs some major work, including foundation repair and tile work in the baths. The rest of the work might just be cosmetic, but one never knows what you'll find. The asking price is $189,000, I'm looking at a purchase price of $55,000-$60,000 when I include the cost of repairs and such, and giving room for if I ever wanted to use PM in the future. The property is located in Conroe, TX. If I went with this price range it would enable me to pay cash through a private lender. I'm trying to be conservative and pursue a reasonable cash flow for myself. Do these numbers sound overall correct? Please let me know if I'm missing something. 

Rent: $2,000 Monthly

Repairs: $25,000

Taxes: $4,000

Insurance: $2,000

Maint: $1,200

CapEx: $3,200

Vacancy: $2,400