All Forum Posts by: Jeremy Lai

@Anthony Salazar I don't really look at that metric as a guide. Every home is so different and a couple of large expenses like replacing a Roof, HVAC system, foundation work, removing a couple of walls and etc. would probably throw that out of whack. I look at each home individually. Simply ARV, minus rehab, minus all transaction/holding costs, minus profit equals purchase price.

@Nicholas Coulter Yeah, to me it seemed like March and April closings was the peak of the market and all down hill from there. It is refreshing to see and we are excited to see where this goes. In the meanwhile, we are still buying good deals, but they need to check all of the boxes. 

@Erik Alvarez

I wouldn’t want to take that fun away from you. Some of the best things come from trying things and testing them out yourself, then adjusting until you get it right. A calculator is just a guide for getting close. After seeing hundreds of properties you will get more of a feeling of what is a deal and what isn’t. Good luck!

Hey Erik, not sure how others do it, but I can break down how I do it. I am currently an Acquisitions manager for a flipping company that focus on purchasing between 900k-1.7m. I always use an excel calculator that factors in ARV, rehab costs, roi, transaction fees and profit. I have noticed that different areas of LA have different ROI's. Hope this helps and let me know if you have something you are selling off.

It's been a while since I have been on the BP site, but I'm back. I currently buy fixers/dated properties for a flipping company in SoCal and we have been adjusting our numbers due to the recent decrease in buyer activity. And all of the other reasons too. Just curious to see how other investors in this region are adjusting down from the February-April tops. We are currently looking at 5-12% declines in neighborhoods that we focus on. 

Welcome Daniel!  I am in the OC/LA area and work for a RE investment company who finds great deals and sells them to investors.  Send me a DM if you want to connect to possibly look at properties around your area.

Thanks,

Jeremy

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $209,000
Cash invested: $42,000

Nice three level townhouse that was purchased as a owner occupant, then turned into a rental when we moved out. Over the time that we owned it, we painted the entire interior, put new carpet on the bottom floor, replaced the entire kitchen, new electrical panel, put in new light fixtures in bedrooms and kitchen and glazed the tubs white. Currently rented for $1650 per month.