All Forum Posts by: Eric Dami

@Joseph A. Do you have a BP report we can review? 

For your first investment property, I would highly recommend buying a property in the local area, even if its ~2 hours away. This helps you network with local agents, lenders, and contractors. If you find a fixer-upper to BRRRR, it will give you experience with understanding acquisition of a distressed property, estimation of rehab costs, working with contractors, and gaining equity in the property.

@Robert Leonard I like the excel analysis, do you have this on fileplace? 

I think 7k in repairs is low unless you're buying materials very cheap and doing a lot of the labor yourself. Especially since you said you are rehabbing: roof, cabinets, countertops, and bathroom. However, best of luck and make sure to post an update! 

I would agree with Tim, in that I would want to see a breakdown of numbers to see if its a good deal. Also, some details on rehab estimate - new roof, new plumbing, new floor or refinish, etc. 

IMO: Your "x" factor is gonna be helping others achieve their goals, because in turn you will achieve yours! 

@Sean Ade, as a new investor a reasonable criteria to strive for is $200/month cash flow, 15%+ Cash on Cash Return, and 10%+ Cap rate. 

One way to make this a deal is to put some capital towards updating this home to get higher rent and having a contractor/realtor help you with how to do this and what to update to get those prices. By updating you will also be able to get a higher ARV. To calculate ARV, you should look within 0.4miles of the home with the same bed/bath/sqft/features. Also feel free to ask a realtor to pull comps for you. I think you could push the rent closer to ~$2000-2100. Various ways to check is: Craigslist, FB marketplace, and rentometer.

Hope this is useful! 

@Robert Leonard appreciate the feedback, thank you! 

Hey @Elijah Glenn, a few observations:

1: I would account for ~12% in total fees when selling. 

2: Are you able to itemize your rehab budget, is this a cosmetic job, is new mechanicals needed? 

3: Closing costs are closer to 4-5% of acquisition

4: I agree with Jaysen on the timeframe. 

5: Feel free to inquire to a realtor for comps/ARV, you can always send yours over for them to review.

Hey Robert, thank you for a quick reply, appreciate it. 

To address your questions:

This would be a rental property, therefore if you have any suggestions on materials that are best and most durable, that would be great. I think granite would be good, and additionally I found laminate floors that are waterproof and look nice for around $2-3 sq/ft. 

For HVAC, Let's assume new central air and furnace heat. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hey Everyone,

I have been using homewyse and some rough calculations to get a baseline understanding for rehab costs. For this example, my assumptions were a full gut remodel of a 3bed/1bath home in Philadelphia county. I assuming the exterior is ok except new roof and painting.

The prices reflect materials and labor. I would say my biggest challenge so far has been trying to understand and estimate HVAC, Plumbing, and Electrical as the prices can vary so much due to circumstances. With that being said, are my budgets for such items reasonable?

Quick Details:

Laminate flooring thats around ~$2.20 a sqft

Quartz/Granite countertops of ~150sqft

8 White shaker kitchen cabinets

New AC unit, and new heating. (Thought 9-10k is good including ductwork, etc.)