All Forum Posts by: Bert P.

@Michele Fischer. I am curious if there was a specific situation that changed your mindset?

Joel Owens Thank you for the reply. Your mention of the cap expense is exactly what I was thinking. I'm not worried about my realtors emotions, just mine. All else fails, there's plenty of realtors around.

I would be using commercial financing with local bank. Landlord pays water/sewer and landscape maintenance. I believe this can cash flow well, but certainly not with the stated numbers. If the offer is shot down I will just move on. If accepted or countered, I'll assess and proceed with due diligence. Thanks for you help.

Hello all.

After much reading, surfing, numbers running, I believe I have found the property to make my first offer on. It is a 5plex in a C+ area in Phoenix. Externally it is in really good condition. As it is supposedly fully rented an accepted offer is required to see anything inside. The numbers as stated by seller:

All 1 bedroom, 1 bath, about 600 sqft
Asking price---$225,000(too high from what I can determine online)
Annual rents--$23,700.00($395.00 unit)
Stated NOI----$8024.00
Stated expenses--$16,838.00(statement in listing that this is high "due to some work done on 4 units.")

Local bank commercial financing. I want to offer $170k, which seems reasonable for the area and sellers stated numbers. My realtor will offer it but doesn't want to offend. My feeling is that without accurate numbers per the seller statement and similar properties in the area, I shouldn't make a full price offer.

If I use the seller's numbers I come up with a 3.5% CAP-not so good.

My biggest question is this-make the offer and if accepted, let due diligence determine actual potential? Or, pass on the property? Or....other thoughts.

I think I'm missing something and am starting to over think. What say my brethren?

Mike Neubauer I have considered some other options including a lease option. Right now I've gotten into a little analysis paralysis with all the different scenarios.
I even have a co-worker who may be in the market for the house if I can turn it quick enough. Way to many numbers going through my head right now.

J Scott I am certainly not averse to lowering the offer, especially once I get the actual rehab costs in. Appreciated much. Appreciate the insight. Eyes opening wider.

Glenn Espinosa Forgot to add that I did use one of the spreadsheets I found in Resource and pluged in what I knew and what I estimated.

J Scott Damn those fixed costs! And I just read a post of yours too. Thanks for the kick into reality. What would you consider a "good deal" from a net profit stand point? Looking for the devil's advocate here. Thanks J

Glenn Espinosa-from a number of places including previous employment working for a home maintenance and repair company I had for over a year, some material costs from Home Depot/Lowes. Basically the most educated guess I could make.

Hello all,
I want to thank you in advance for reading this and please-tear it apart if need be. I haven't posted too much on BP but have been reading alot. My plan has been to fix and flip to improve my cash on hand and then move into buy and hold. I have found myself with what I believe to be a great opportunity to do my first deal..

3/2 SFR, 1400+ square feet
Estimated repair/update-$45k-no formal bids--yet
Estimated ARV-$125-130K-pulled from county recorders office.(will need help with comps. Any local folks interested? Let me know how I can quid pro quo).

House currently in probate, but since it belonged to the parent of a friend, they allowed me to get inside and look it over. It has a clear title(will still have title search done). Once the family has cleared everything they want out of the house, they will let me back in and at that time I will have a contractor come out.

I plan to offer an all cash $60k "as is"-subject to repair bids. Close in 1-2 weeks.

My questions:
1. Since I will need to go with a hard money lender, at least in part, what are the chances that a 65% LTV would be available to a rookie-with reasonable interst/points anyway? I have already considered an optional exit of lease opton with owner finance and wholesale if necessary.Other options?
2. Is there an average +/- on repair costs I should figure in?
3. What else am I missing at this point? I'm not used to reaching out, but know that it's what it will take to be successful.

Thank you all in advance!

Thanks Brian, I can probably blend that in with the previous advise.