All Forum Posts by: Dan Sundberg

What a great turnaround @Dawn P.! It's always helpful to take a look at what other rentals in the area are doing, especially at the higher end. This can give good insight into what renters expectations are and what trends/preferences for your market are. 

@Bryan Malone - In a similar position in California too, looking in Michigan for out of state opportunities. I'd suggest diving in to education for a bit before making any decisions (although be careful of analysis paralysis!). BP podcast has tons of good content, as well as the bookstore here. Give the most recent podcast episode a listen. Convenient timing because it's a high level overview of a lot of this stuff. 

https://www.biggerpockets.com/...

Lots of great advice in here that makes great sense. I'll throw in that if you are on the fringe and do want to consider the counter (which it sounds like you don't, but this applies for future situations too), I'd strongly suggest a conversation over the phone with the seller or their agent. You can get a lot accomplished through a conversation to find out if your counter will fly, or they're willing to do it with some concession from you (faster closing, renting back after close, etc.), or if they'll reject it flat out and kill the deal.  

Not a Real Estate book, but How to Win Friends and Influence People is priceless in teaching interpersonal skills that are critical to making good deals happen.  

Hi Terri - by the numbers it looks like a good opportunity. Looks like you are approaching this as a BRRRR? A couple questions on the assumptions.

1) How confident are you in the estimated rental amount? I don't pretend to know that market at all, but a quick browse of online rental sites don't show 2/1 duplex units renting at $750/ea. You no doubt know this market better, but that's a big assumption to triple check. 

2) The budget for ongoing repairs and maintenance may be a little low for a house built in 1903...you never know what comes up...

3) May want to take another look at the pricing assumptions. the ARV is the sum of repairs and closing costs. I'd suggest revisiting the comps for ARV as hopefully the repairs would add more value than just their cost...either that or the purchase price should be much lower.

Hope this helps!