All Forum Posts by: David Quan

Hey BP members!

My name is David Quan from the Hampton Roads area of Southeastern Virginia.  Aka the seven cities.  

I have one rental property that I've owned for 11 years.  I lived in it with my wife and two kids the first 7 years and it's been rented for the remainder.  Real estate was my first love but I fell in love with it during the crash of 2008-2009.  My wife and I went into opening up an insurance/financial agency since then and now we are getting into real estate investing to build cash flow. 

I decided to get into real state by searching for some podcasts and videos on YouTube.  I came across Bigger Pockets in early November and immediately was captivated by Brandon and David and the guests on the show.  Great stories and people willing to share success stories.  I listened to one almost everyday since then and even some twice.  Here we are 5 weeks later and we are working on our first few deals.  I have done a lot of learning and still have more to go obviously, but the best type of learning is by doing.  I'm super excited about the potential of building the two best industries for building wealth and believe they go hand in hand.

Primary goal is to BRRRR single family and multi on our way into apartments. I've read the BRRRR book and thats what we are implementing. I just posted my first deal numbers on the BRRRR forum for some feedback just to make sure I am on the right track. I would love to help others add value and share what I learn along the way. I hope to be a big contributor to the community as I have already gotten so much for free already. I joined as a pro member just to invest into the BP community because of all the value provided to me.

Thanks and I look forward to connecting with more people on here!

BG has been an awesome platform!! I became a pro member just because I felt like all the free content and podcasts were worth that cost alone.

I am doing my first wave of BRRRRs and just want the communities opinion on my numbers to make sure I am doing this correctly. As the BRRRR book says, "you make your money when you buy" so I definitely want to buy right. We are in the southeastern Virginia area.

Single family home 3 bed, 2 bath, 1,200 sq ft

Asking Price $104,500

ARV based on comps: 147,000

75% rule: finance out 110,250

Hard money lending: hypothetical case 6 month hold 5,673 ($31/day, points per day) plus 5,250 ($875/month, 10% annualized) = 10,923

Closing costs (3%): 4,410

Doc fee and appraisal: 1,200

Rehab budget: 30,000 (structure good, paint, flooring, roof, bathrooms, kitchen cabs)

Taxes and insurance: 1,500

Offer Price = 110,250 - 48,033 = 62,217

Mortgage would be about $850 a month PITI

Rents would be $1,100

Cash flow would be 250 per month before vacancy, repairs, capex

Ultimate goal is to build portfolio and get into apartments.

Questions:

1. Am I on track here?

2. Am I missing any expenses or anything else at all?

3. It seems a lot of deals in my areas will require me to offer a price that is 40%-60% lower than the asking price. Is this normal?

Thanks for any advice or help!

David Quan

BG has been an awesome platform!!  I became a pro member just because I felt like all the free content and podcasts were worth that cost alone.

I am doing my first wave of BRRRRs and jus want the communities opinion on my numbers to make sure I am doing this correctly. As the BRRRR book says, "you make your money when you buy" so I definitely want to buy right. We are in the southeastern Virginia area.

Single family home 3 bed, 2 bath, 1,200 sq ft

Asking Price $104,500

ARV based on comps: 147,000

75% rule: finance out 110,250

Hard money lending: hypothetical case 6 month hold 5,673 ($31/day, points per day) plus 5,250 ($875/month, 10% annualized) = 10,923

Closing costs (3%): 4,410

Doc fee and appraisal: 1,200

Rehab budget: 30,000 (structure good, paint, flooring, roof, bathrooms, kitchen cabs)

Taxes and insurance: 1,500

Offer Price =  110,250 - 48,033 = 62,217

Mortgage would be about $850 a month PITI

Rents would be $1,100

Cash flow would be 250 per month before vacancy, repairs, capex

Ultimate goal is to build portfolio and get into apartments.

Questions:

1.  Am I on track here?

2.  Am I missing any expenses or anything else at all?

3.  It seems a lot of deals in my areas will require me to offer a price that is 40%-60% lower than the asking price.  Is this normal?

Thanks for any advice or help!

@James Gates Very nice. Thanks so much for sharing the story and details. It’s inspiring hope and belief and is a blueprint to success. We are getting started in this and this put things together so simply. We look forward to contributing to the community very soon as well.