All Forum Posts by: Jake Drappi

Hi Kenneth, 

Thank you for your response. I would be using my own cash to fund the purchase and rehab on this. The lender I spoke with stated they could give me up to 75% LTV, but I will def have to check if the seasoning period starts when the purchase is made or when the rehab is complete. Is there a safe % to use to cover additional expenses on the rehab overage? I could also lower the repair expense, as you mentioned, there should be little repairs needed for the first say 10 years? And the realtor I am working with stated the rent should be around $1350, but I did want to be conservative on that piece as well.

Maybe I should lower my offer price on this to $30K and send them a detail breakdown of all the expenses to validate my offer?

Hello all!

I am working on putting an offer in on my first potential BRRRR - here are the #'s so far, I have an offer going in today! I have budgeted a bit on the low side for rent and also the ARV for added cushioning. The rehab costs is from a licensed contractor. Seller is asking for $50K, but there is no way it would work at that $ in my rookie opinion, so I would be offering $40k.

ARV: $119K

PURCHASE PRICE: $40k

REHAB COST: 46K

TAXES: 3K ANNUAL

HOLDING COSTS: $5200 (included: inspection - $500, septic inspection - $750, taxes for 5 months for seasoning - $1250, INSURANCE $300, UTILITIES $1,000, ATTORNY/ CLOSING FEE - $1400)

REFI COSTS

70 % ARV 83,3000 REFI AMOUNT

CLOSING COSTS $4,000

REHAB TIMEFRAME: 8 WEEKS

SEASONING PERIOD 5 MONTHS

RENT: $1,200

MONTHLY EXPENSES: $1,007 (TAXES: $250, VACANCY: $60, CAPEX: $120, P&I: $442, REPAIRS: $60, INSURANCE: $75)

REFI INTEREST RATE 4.5%

TOTAL CASH INVESTED: $11,900

This is my first real opportunity, but the numbers seem very tight and  wanted to see others opinions. Also, if I am missing anything, FEEL FREE TO COMMENT!

Good morning BP!

I am looking for some referrals for a GC in South Jersey. I am going to see a property I intend to BRRRR in Vineland but I do not have a whole lot of contacts in the area. I am looking for some GC's that can give me an estimate for the rehab. I will post details of the property after I get it so others can follow if interested.

Thanks in advance!

Jake Drappi

great read thank you

@Lamont Chen Thanks Lamont - I am going to see the property this week and may ask a professional of my choosing to come out to the property to survey it as well.

@Dave Poeppelmeier congrats!!!!

Hello BP

I am a rookie investor looking to get started with potential BRRR. I found a property that has been listed for a few years and has had multiple sales fall through. I was able to find out that the property had an oil tank that was removed, but the sales keep falling through because the owner is having problems with the oil remediation. I am waiting on more details, but what are some of the problems that I could potentially encounter if I were to pursue this property and what solutions have you used to fix the situation? On top of that, they are also having issues with the existing tenant. Being that the property has been listed for so long and there are a few major issues, I am thinking of putting in a lowball cash offer (I am not a fan of lowballing, but I think this could be a win win). However, I am not sure of how big of an issue oil tank problems are. Is this something that other investors would consider or should I walk from this before I get involved?

Thanks!

Jake Drappi
 

@Cameron Riley learned this in business. If you have to ask, then you already know the answer.

@Vaughn Smith Thanks for sending this.  I am looking for 2-4 families, class B, light rehab (paint and carpet, bathroom & kitchen) with decent school districts.

@Rick Estacio Thanks Rick!