All Forum Posts by: Josh Perkey

@Andrew Postell

Thanks you for the reply! I will try that. I have reached out to my facebook groups. I am just trying to reach as many people as possible. I will try your meet up suggestion!

Thanks

Hello all,

I currently have a property under contract.

Purchase Price 145k

ARV: 225-245k

Rehab Expenses: 25-30k

Location: Grandville, Michigan

I am looking to buy with private/hard money lender, rehab the property, and refinance. Looking for 0 money down or close to it.

I would like to build a relationship with you and do it all again in the future.

Please let me know if anyone has recommendations as well.

Thanks

@Bjorn Ahlblad Thank you for the reply!

I am excited to get into real estate and want to minimize my mistakes getting into it. Thanks for the insight. I have lived in this area for 2 years and know a lot of students that live in my area and have learned what the rents are roughly and how much the property management company charges. But obviously, getting all close to exact answers as possible is the goal so I’ll do some more research!

@Aaron H. Thank you for the reply.

I do realize at this point that my weakest link is the estimating of rehab costs. However I was kind of going off that the house my friend flipped costed him about 11k total to rehab including the labor. That was basically a full renovation he said on a 1200ish sqft home. I was just assuming no electrical or foundation issues doing my first estimation costs, because if there’s issues there it’s a totally different war. I will do more research on that subject

Hello all,

I’ve been very interested in getting started in real estate! I don’t have any experience as of right now but I have been doing a lot of research and have located a property near my university that has solid marks and would like some guidance. Thank you in advance!

The Property

Asking price: $115,000

Bedrooms: 6

Bathrooms: 2

SQFT: 2500

It’s currently renting at $2500

Taxes: $118/month

Estimations:

Rehab: $25000

Insurance: 5% of rent

Vacancy: 5% of rent

Repairs & Maintenance: 10% of rent

Capex: 7% rent

Utilities: 10% of rent

PM: 10% of rent

Cash flow: $791 a month

Cap rate: 10%

I haven’t gotten an inspection yet and have no idea what that would look like. The pictures show it pretty much needs a full renovation, although it’s a college town house so it doesn’t need to be the cream of the crop. I drove passed the property and looks like a new roof will need to be done in the next 3 years. I plan on doing the rehab myself as I have done some of this work and have a friend who flipped a house in the same area this past summer. Who is willing to help with everything. After rehab I think I could expect $2750 a month at the least from the 6 bedrooms even including utilities.

My questions are: 1) Do my calculations look correct? Like are my estimations per month accurate?

2) What would be the next step to take assuming these calculations are correct?

Thank you all so much in advance!