All Forum Posts by: Jordan Fujan

Thanks everyone for the feedback. The article  https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...   that @Robin Simon mentioned filled in a huge hole. I've read David Greene's BRRR book and as the article mentioned, it says nothing about DSCR in it.

As for Conventional loans, from everything I've read on BP they're now a 12 month seasoning period. Two of the banks i contacted are insisting they can do 6 months seasoning on a conventional loan even after i questioned them on it. Are they just behind on info? Are they talking about a different loan option? 

Thanks for the feedback. Can you tell me the names of the national private lenders that you find reputable?

I've currently been shopping around banks for a DSCR loan on a BRRR. I've now had 4 banks get back and say they only offer up to 25 year amortization and 5 year rate terms. They can do around %8 on the loan. When i first started reading about DSCR i was under the impression they were still generally 30 year fixed loans.

Is 25 years and 5 year terms the current norm? Would you be reluctant to go with a 5 year term? 

I'm a new investor and had hopes of using BRRR and having enough leftover to put it into PM. I'm now seeing that i would have to buy at an incredible price and have 60% LTV on the refi for this to even start to make sense. I've called 4 banks recently about receiving a DSCR type loan and they are all around 8% and 25 year amortization and will go up to 80% LTV. They also all have 5 year loan terms. Is it standard for a DSRC loan to have rates locked in for 5 years vs being fixed? Is 25 year amortization also the norm?

Thanks, the plan is to get a DSCR loan. When i adjust my total investment cost to match that of the BP calc($167800) my COCROI and my multi year ROI match it perfectly which gives me some confidence in my calc.

These are the rest of my number for this example. I'm struggling to find a way to get property management to work (Figuring 11% of the rental income). Even if i would choose an LTV of 60%, it would be close to a cash flow of zero. At first glance buying 40% below ARV i would think that there would be room but i guess numbers don't lie.

Is this the current norm with interest rates where they are at? Is it unlikely to buy at a deep enough discount to make BRRR and PM work?

Thanks for the input. 

I ended up comparing it to the bigger pockets BRRR Calc and everything checks out besides a few variables. Maybe ill have better luck trying to ask specifics with the group.

On my sheet total project cost is calculated by adding Closing costs + Repairs + Holding Costs + Loan amount + Hard money fees. I then subtract that from the refinance loan to figure out how much is left in the deal.

On the bigger pockets calc project cost is calculated by adding closing costs + repairs + loan amount as seen in the first picture. 

How can the other variables not be accounted for??

I'm going out on a limb here. I created a detailed BRRR excel spreadsheet to analyze deals. I know that there are many others out there already such as the BP calc, but i decided to create my own to make sure that i truly understand the numbers. Is there an experienced investor that is proficient in excel that would be willing quickly proof read it for me if i were to send it to you? Would be much appreciated.

Anyone willing to list what percent they figure for cap ex?

Thanks for the responses

I'm working on my investment spreadsheet and have been doing some reading on the topic of Cap Ex. Some people use a number like 10% of the income, but many suggest itemizing your expenses over their lifespan is the most accurate. I've seen some logical points made that under estimating Cap Ex may not be realized until many years later when a few larger than expected expenses eat up years of "cash flow".

Below is my Cap Ex estimate. I've taken the lifespan and current age of the item (many do not add current age but I don't understand how you can be accurate without it) into account to estimate the remaining years until replacement is needed. For a SFH that rents for $1800 that would be 17% Cap Ex. I understand that Cap Ex is location and age of home dependent, but is it possible for this to be ballpark accurate for these times? I wonder if 10% is so commonly used because people are looking at 10 yr time frames and not 30+? Am figuring these numbers right? Any other variables I'm not looking at?

Your input is appreciated!