All Forum Posts by: Ian Campbell

Hello!

Thanks for the reply, unfortunately a cash buyer came in at asking price and I lost the deal. But these are all very insightful points (especially regarding the contractor issue(s)), and I will consider all of them in future analyses.

Thanks!

Ian Campbell 

Hello,

I found a triplex in my hometown that currently rents for just under $100K/yr, and has shell space within the footprint (utilities already stubbed in) that can potentially be finished out into an additional 1br/1ba, thus allowing for a quadplex value add! I've attached my analysis report at asking price ($800K), and made certain assumptions about capex/vacancy/utilities, and the CoC came out to around 18%! However, I am wondering if any of my assumptions are wrong in any way (i.e. only $15K for drywall and cheap flooring, 7.5% interest rate, closing cost fees, etc.). Please let me know your thoughts!

Thanks and great being part of this exciting community!

Ian Campbell 

View report

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

View report

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

Hi all,

I'm looking into an atypical BRRR deal in suburban Philly (see attached BP report). There are 2 homes on the property, and since the main house (5br 5br) would be my new primary home, so I'd be using a 203K construction loan for the rehab with a 5% down payment. My max offer would be $950K, so I'm using that for the purchase price. I would need at least $400K to rehab the 2 buildings to get it to an average price/SF compared to nearby homes ($350/SF, or $2M). My calcs say I would need to HELOC or privately borrow $160K for the cash needed to cover the 5% down payment, 2% initial closing costs, 6 months of initial mortgage (PITI), 2% cash out refi fees and the cost of the HELOC/private loan for 6 months. 

For what it's worth, there is an ADU on the property that is a fully separate house (5br 1.5ba) that can likely rent for $3K/month once renovated, for which I have accounted for in my $400K construction loan cost. However, given the cost of what the final mortgage might be, it hardly puts a dent into the monthly cost. 

I think it's a great equity-building opportunity rather than a cash flowing opportunity, but I am wondering if I'm missing anything. Please let me know if anyone sees any glaring red flags I missed, or if the negative cash flow/mortgage is so great that the opportunity might not be worth it if I hold on to the property for too long.

Thank you!

Ian

Hello from suburban Philly! I'm wondering if any existing homeowners have tried to purchase a multi-family investment property to live in/house hack, and in doing so are able to classify the purchased multi-family as the new primary residence in order to achieve a lower down payment and/or interest rate despite still owning their original house/primary residence? 

I work as a PM/civil engineer for a large CRE firm and have a construction jobsite about 2 hours west of my current primary residence (the project's duration is over 12 months), and am considering moving/living in 1 of the units during the week to cut down on my commute time, but don't want to sell my existing primary residence and thought this might be an advantageous way to capitalize on the situation. However, I'm unaware of any tax and/or legal implications to this plan, or if any lenders will allow this if I just purchased my primary residence a short while ago (September 2021). Perhaps my new job/work location would allow me to classify a multi-family property closer to my new long-term jobsite as my new primary residence, or is this a recipe for large tax filing/legal implications?

Thank you,

Ian Campbell