All Forum Posts by: David Olson

@Anton Ivanov good point. I took your suggestion and started doing the numbers by hand after I run the BRRRR Calc so that I understand how they got to the number they did.

@Anton Ivanov man thanks for the help!!! I think I got it right this time.

@Anton Ivanov so the "purchase" price on the first page would be the total loan amount from the hard money lender correct? Here are the new numbers I received form the HML and what the Calculator is spitting out This is a bad deal I see that but I am just trying to get this calculator down.

Also in the calculator is "Total Cash Needed At Purchase" just that? Cash in hand to buy the home with the HML?

@Max Keller I was hoping it would reflect all the closing costs that I entered and all the data I entered but its not pulling it correctly or I am entering it wrong. I'm trying to evaluate some deals and its hard to know if the deal is good or not based upon what the calculator is spitting out.

 The GC I will be working with will provide me the cert for the mold remediation. I would suggest paying up to have it done right the first time. I know some people that tried taking shortcuts and after having the mold inspection 3-4 times it finally passed. Had they done it right from the beginning they would've saved $2k. 

All of a sudden I cannot figure out simple math to save my life. I am trying to place the numbers below into the BRRRR Calculator but it is spitting out some weird numbers and I'm not even sure where to start. Before I go any further...I'm not pursuing this deal at this purchase price but simply trying to get the simple math down which all of a sudden doesn't seem simple.

The fist photo is what I received back from a HML after I sent them a "hypothetical" deal. I am wanting to run through the numbers as a practice run before I jump in. The other photo is what I placed into the BRRRR Calculator and I am trying to see where I went wrong. $150k needed at closing? I also added 3 points and fees into the calculator. So confused.

@Keith J. Davis Jr. I think buying a flooded home is fine as long as the numbers work which sounds cliche. Most of the home owners just want out. I have heard and spoken with some investors that feel it will take some years for the market to come back to where it was pre-Harvey. Especially for people to feel comfortable to buy in an area that was flooded. I would look into whether or not the house flooded ONLY during Harvey or also during the Tax Day flood etc. How many times has it flooded? You will also want to obtain about every certificate under the sun related to mold and anything electrical. Having those certs on hand can be the difference. 

If you're in it for rental cash flow then finding a home, rehabbing it, and renting it out shouldn't be to tall of a task. I think there will be a large transfer of wealth with these homes. Just as an example using rough numbers, the pre-harvey value of a home might have been 175-180k and climbing but now that they are gutted you can pick them up for 90k-$105k and put $35-$45k worth of rehab work. 

Personally I wouldn't flip a house in this market. I am sure some people on here have done it since Harvey and had success though.

@Andrew Syrios I think I'm getting my loans confused regarding a BRRRR property. I thought that I could refi into a conventional 30yr fixed rate at 4%-5% after the seasoning period through an FHA but I think I meant to say Fannie Mae or Freddie Mac. Downside here I guess is waiting for that seasoning period vs possibly being able to refi immediately after the rehab is complete.

Also why wouldn't one want to use a mortgage company vs a specific local bank? Wouldn't the mortgage company find you the best rates anyways throughout the banks in the area?

@Andrew Syrios I'm a newbie and read your article and I have one question. When doing the refinance portion, is it the bank or the FHA that requires the 6 month seasoning time frame? Also I assume if there is no seasoning through a bank that means the rates and terms would be less favorable compared to a FHA loan correct?

I guess I have two questions. The seasoning begins the day you own the property and not when you have a tenant in the property?

@Ayo O. Here are the three I have spoken with. 

https://jetlending.com/

https://www.noblemoney.com/

https://www.longhorninvestments.com/