All Forum Posts by: David Emanuel

@Josh Caldwell

Thanks again Josh

Your responses are an immense help!

,Dave

@Josh Caldwell

Thank you for that info Josh

With that, I will start to put more focus into looking for bargains and less into analyzing my market.

As a new investor who has no experience in estimating rehab cost, I would love to know if you have any suggestions on how I should go about it for my first few deals. Should I focus on finding deals first and then worry about rehab cost after? Or maybe find a general contractor or two who is willing to give me a bid before I find my deal? Perhaps the inspector of the home would suffice?

@Josh Caldwell

Hi Josh,

Thanks for your response! It sounds like your saying my strategy is efficient but not effective, and I would like to be effective with any strategy I use. My idea of analyzing a market/sub market came from analyzing individual properties in a specific neighborhood, and not knowing what to put down for the ARV or for rehab cost. I figured by analyzing the market, the ARV would begin to naturally come to me. I feel like once I have an idea for what a property needs done to it on the rehab side, and what it could potentially appraise for, I could better spot a bargain or know what the right number for me to offer on a property is.

The example you illustrated is very helpful. I understand it's safe to assume your house would appraise for 100k or more based on the comparable you used, but how did you know the house needed 25k for the rehab?How did you know to offer 25k instead of let's says 35k-50k? With a 75% LTV, any of those offers would result in a "home run" after a refinance.

I haven't purchased my first property yet, and having an accurate idea of what a property needs for a rehab, and how much it would appraise for is important to me as I plan on using the BRRRR strategy.

Hi everyone, Dave from Philly here!

I'm trying to put together a check list of things to do to analyze the market I plan on investing in, and I wanted to get some ideas from you all about what I should include on it. My goal is to know and understand what the max ARV of any property in my sub market will be, and what factors are determining that max ARV. I figured, this way I would be able to know if the asking/sold price of a property is fair, low, or high just by looking at the metrics.

Currently, I’m keeping track of properties sold within the last 6 months, along with each individual properties sold price, date sold, zip code, bedroom/bathroom count, square footage, type of property, and year built. Are there other metrics that I’m missing that I should also be keeping track of? Perhaps I should keep track of specific details about the structure and designs of the interiors? I’m aiming to make the process as efficient as possible.

What are some essential tasks an investor should complete on a regular basis to analyze their target market and know things like:

1. Are asking prices currently high or low?

2. Am I analyzing a buyers or sellers market?

3. What is the max ARV of a specific property in the area

4. What needs to be done to a property for it to reach it's maximum ARV?

I can’t wait to hear from you all, thanks!

Hey guys! I was watching a BiggerPockets YouTube video made by Felipe Mejia, and I had some questions by the end of the video that I was hoping you guys could help me out with.

Here’s the video https://youtu.be/XjUzmXOp0LE

My questions are

1. How did he get $4000 as the amount of equity in the property?

2. Did the deal not work because paying out of pocket doesn’t fit his criteria?

3. Do you think he planned for the ARV to be $209,000 if he went and did the $15,000 rehab?