All Forum Posts by: Jay Dewberry

Welcome to BP Rafal. You have reached a great place for knowledge of REI. Read up, network, ask questions, and take advantage of the BP Calculators. They will come in handy. Good luck.

Hi Hung. I'm going to assume you are referring to Charleston SC. I literally just left there hours ago and would have loved to drop by to check out things for you as I'm looking in the N.Charleston area as well. A good guy to pick his brain about the Charleston area would be @Jay Hinrichs. He's a developer there and can offer some insight as to some investment strategies and up and coming areas. But from the information you've provided, this seems to be a possible investment depending on further analysis, however without all of the numbers, area/history, it's tough to say. You can be in a potential war zone on one block, but travel a short distance and be in a great location. Just thoughts. Good luck.

Some things come to mind on your post:

1) I wouldn’t trust zestimates fully. They are there just to give you a possible idea of an estimate. The market determines what a property will likely sell for.

2) How do you know you can acquire the property for 69k? Have you submitted several offers/counter offers? Is the owner motivated?

3) When it comes to rehab, never “trust” any perceived min/max until the job is done, regardless of what the GC bid is.

4) Realtors are there to assist you with comps. They just don’t want to provide this in vain without benefiting from a listing for purchase/sale.

It seems the main question is how to determine sales comps, in which there are several posts on this subject. But the basics are you want to compare apples with apples. If the property (for example) you’re interested in is a 3bed/2bath with garage, and basement, that’s 1500sqft, built in 2001, located on Main St, you want to compare that to the most recent sales of homes that are 3bed/2bath with garage, and basement, that’s nearest to 1500sqft, built as close to 2001 as possible, in the closest vicinity to Main St. as possible. As for zoning, I will defer to more seasoned investors. Hope this helps.

Hi Jennifer. Welcome to BP. There are plenty of Meet-Ups in the Atlanta market. Two of the more popular ones are Atlanta REIA and Georgia REIA. These main groups have several sub-goups as well. I encourage you to drop by a few meets to get a feel of field. Plenty of friendly people looking to network and make deals. There may be a nominal fee if not a member, but in my opinion it's worth it. The last meeting I attended, they gave away several trips to the Caribbean just for coming out. As always, keep surfing BiggerPockets for the wealth of info and good luck.

Hi Angel. Welcome to BP. In my opinion, it all boils down to the numbers. Even if the property is priced below market, what does the analysis show? What may look like a good deal on the surface, may turn out to be a nightmare if not analyzed properly. Perhaps run the numbers through the BP Calculators and post them here so we can provide you with some feedback.

Hi Tom. Welcome to BP. There are plenty of Meet-Ups in the Atlanta market. Two of the more popular ones are Atlanta REIA and Georgia REIA. There are several sub-groups for these as well. I would encourage you to drop by a few meets to get a feel of field. Plenty of friendly people looking to network and make deals. There may be a nominal fee if not a member, but in my opinion it's worth it. The last meeting I attended, they gave away several trips to the Caribbean just for coming out. As always, keep surfing BiggerPockets for the wealth of info and good luck.

Matthew, you may come to find that many people on BP tend to steer clear of properties in D/F class neighborhoods and invest in A/B/C class neighborhoods mostly because of the hassle that tends to follow in these “less than desirable” markets. That being said, it looks as though the property will bring in decent rents when comparing it to the asking price, and it passes the 1% rule. If after your analysis, you bring in good cashflow and it meets your investment goals, go for it. Just be prepared for a possible headache in the future. Just thoughts. Either way, good luck.

Hi Shiva. Welcome to BP. From my initial review, it seems as though there are a couple of items missing from your analysis. I did not see a budget for Capital Expenditures and Property Management. Also, in my opinion, the vacancy seems a bit high and the Repairs/Maintenance seem low. Once you factor in the above, my analysis shows a negative cashflow for this property, as well as, a negative CoC return. In my opinion, this would not be a viable option for investment unless you have a different exit strategy and/or holding for some other long-term investment goals. My numbers are here. Perhaps redo your numbers in one of our BP Calculators. You can try them out several times for free. Just my thoughts. Good Luck.

I would have to agree with @Max T.. Depending on the amount of painting(interior and possibly exterior), that number may be low. Especially if you consider the prep time for painting, 2nd coat, and cleanup, the time/numbers can add up. But it couldn't hurt to request an itemization for your "records" so you'll have something to compare it with if you decide to get other offers as well. Just thoughts. Good Luck.

William. We're going to need some numbers to be able to assist you. Have you had a chance to get some contractors in the property to give you some estimates? What's the ARV? What are the terms for the HML? Perhaps post the results from the BRRRR analysis as well.