All Forum Posts by: Gardy Saturne

@Gardy Saturne Great job on the first deal. You could invest in Propstream, Propelio D4$ app, and an Investor Carrot site for a total of ~$225 which will save you a lot of time and generate some leads through SEO (via Investor Carrot Site). And you'll still have money left over in your budget. Maybe you are using some or all of them but if you want to find out anymore info feel free to DM me. 

@Gardy Saturne I wouldn't put that $500 towards direct mail, on average it's going to take quite a bit more than that to get your next deal. If I only had $500 to work with, I'd be driving for dollars and spending the money on skip-tracing the owners. That money will go a really long way and you'll be able to get some very good leads. Pro-tip, drive for dollars on trash days so you can truly see what properties are vacant/abandoned and which ones are just neglected. 

Congratulations on the first deal! Now that you know it works, start snowballing! 

@Gardy Saturne I clicked on the link above, but got "Page Not Found".  FYI

That’s what I would have thought, but that’s not what I’m seeing in your report. Under acquisition cost it shows a loan Amt of $119k. The refinance section shows an ant for purchase and rehab, but I’m assuming that would be AFTER the rehab. So I still think there’s something wrong here. 

@Gardy Saturne, this could be a good deal. It's MFR, right? How many units? The biggest question I have is why you're spending $295k on a property you determine to have an ARV of $242k? That's a lot of work to lose over $50k.

Why is your refi for $292k? You'll need to leave at least 20% equity in the property.

A few other things to think about:

• Does the income reflect all units rented or you living in one unit? Remember, you'll have have to live there for the 1st year or as long as you have the FHA loan (whichever is shorter).
• $150k renovation in 4 months is probably unrealistic.
• Closing costs look high. 
• What are the loan fees? You can usually find pretty good rates without points, especially if you're owner occupying.
• You'll have PMI on the first loan.
• Vacancy of 15% is VERY high. Is that intentional? Is this a war zone? I usually figure 8%.
• CapEx and Repairs are still low over the long term. Sure they'll be lower at first after your renovation, but if you plan to hold this long term it all evens out. I recommend 15% combined.
• Have you confirmed the insurance number with a local insurance agent? Might be a little low.
• You should expect your taxes to go up. Depending on your municipality, a sale/refi may trigger a new appraisal or they just do everything every 2-5 years. Either way, you're basically doubling the value and your taxes will go up proportionally.
• What about water/sewer, lawn care, and snow removal?

@Gardy Saturne So, if I'm understanding this correctly, you're getting a loan for purchasing the property, but have the cash to rehab. Then, AFTER rehab, you're go to refinance the loan for the ARV and get cash out for the rehab costs you paid for? That's what it looks like to me. And you're doing all of that for 20k in equity (when all is said and done)? Something doesn't seem right IMO. Although I'm not familiar with this report, so maybe I'm reading it wrong (??)