All Forum Posts by: Jared Prevost

Got it, thanks for the info Wayne!

I've been doing research on private lending and my research led me into closing documents research which brought me to foreclosures and REO properties.

Have other investors had luck purchasing REO (Real Estate Owned) properties? I'm sure there are not a lot of these properties around right now, but it seems like a great way to snag a great deal other investors may not have seen (I'm not sure these properties go onto the MLS, perhaps they do).

I found this online map and it seems super helpful: REO Map

If anyone has any experience with REO, please respond and let me know!

Gotcha, it looks like your expenses might be a bit on the low side. I noticed a vacancy of only 3% (8% is expected especially if you only have one property with no established funnel/marketing presence for tenants) and no fixed expenses. Also, depending on how old this home is, I would expect an allowance of CAPEX of $150 to $200 a month.

As far as revenue goes, I would guess as a realtor, you have a good idea of what rent rates are in your area, so that seems fair.

I don't know your market, but given the competitiveness of REI right now, unless you found this off-market, these numbers seem to be too optimistic. With that being said, even with higher expenses I think this could be a great first deal, don't fall into analysis paralysis!

Sure thing!

Looks like a solid deal, what exactly are you looking for help with for this deal?

If you're asking if the returns are strong, the numbers look great! If you want a more detailed underwriting of the deal, I just posted a link to some spreadsheets I created for analyzing deals! (click here)

I wanted to give back to the BP community - so I used my passion for finance and spreadsheets to create a projection to easily run detailed numbers for all kinds of RE deals, including:

• Buy & hold
• flips
• BRRRR
• Short-term rentals

Something great to take to your private lender or loan officer! I'd love some feedback on it and would of course love to connect with anyone interested in running some numbers on a deal together.

The projection is very flexible, allowing you to choose any sale month you'd like within 10 years (or none at all) and allows you to choose the month you refinance, so if you use hard money, you can easily see how holding costs affect your returns.

Click this link for the dropbox folder to access the 'quick' and 'detailed version of the spreadsheet, happy deal analysis!

Thanks, Andrew! I'm glad I didn't place any weight on the 2% rule for my projections. You make a good point about the 50% rule, I have already adjusted for tenants paying utilities, property management, and mortgage insurance premium for an FHA loan.

I know a few rules of thumb when it comes to rental properties (the 1% or 2% rule for rent/purchase price, the 70% rehab rule, and the 50% operating expense estimate), but I'm curious to see what other 'rules of thumb' are out there. I recently created a detailed rental buy and hold projection on Excel (willing to share!) and from that projection, I am making a 'quick analysis' sheet to quickly screen leads.

Excited to see what you guys have!