All Forum Posts by: Dieudonne T.

Just an update, it’s been over 5 years since I learned about Realestate, I still haven’t started yet for a variety of reasons, my personal issues, my fears, my lack of knowledge etc. in case I know Realestate is a vehicle i can use and accomplish many a things. Whenever i get to it or whenever i have a good enough reasons(excuses excuses excuses 😁)to do all the hard, but easy if you love doing it.work it takes to make a realestate deal work. Bye for now and i wish all bigger pockets investors good fortune,go make stuff happen. And never ever give up, cheers

was watching  

and i wonder so for commercial properties reducing expenses and or increasing rents and or decreasing vacancies increases NOI which in turn Increases property value. would that not be possible for residential as the property value is based on comps of what the other similar residentials have sold for around the area?

Sort of a question more of an inquiry

I suppose total monthly cash flow and total monthly expenses could be used to estimate gross revenue and gross operating expenses to calculate NOI not counting the Xfactor( you know murphy's Law) Which if one knows the condition of each component( how old is the roof how old are the windows etc…) of their house one could make a certain educated guess based on the probability of the wear and tear of each component(roof window etc) to then come up with a ball park estimate of, if the components likely to break do break how much will it cost. This will be guess work and a lot of assumptions which could be a waste of time as one could simply wait till the end of the year to calculate NOI.

@Aaron Ehrlich

Curious if the other 2 properties met your $200 cash flow u usually look for.

Otherwise

I would not go for that $54 cash flow but I usually don’t factor in appreciation. So if those repairs add value greater than the repairs + loan then I suppose that makes sense.

Speaking of, what is the projected ARV?

Renegotiating and getting that $106 cashflow is what I would go for. Seems to be the better deal.

@Gunnar Haugen

Am unfamiliar with with building homes is it cheaper than if you just bought two separate properties?

@Aaron Ehrlich

How much cash flow would you get after renovations?

i see banks are more lenient than I thought.to add on it would be even better if the owner owns the house with no loan on it. if one finds such situation they are quite lucky. 

@Joe Villeneuve

I agree with you though some banks have it  in their loan agreement that a lease option will trigger a due on sale clause. I've heard for the most part banks allows lease options, it's safer to make sure that risk will not happen, rather than assume.

@Jaron Walling

Phew! I wasn’t sure but I had a lot of Concerns while I was analyzing it as well

originally I was going to Analyze it as a house hack but I gave up,

The rent came from what the agent said it was renting for

As for the 3.5 increase in price am guessing it’s the current seller market and And perhaps some wishful thinking.