All Forum Posts by: Joshua Nowell

@Tim Bender

Treating them as a lead funnel versus like a realtor is a great mentality👌

@Laura Jackson

Yea I found two that will go well if the sellers takes my offer. The second one even had a price reduction. I hope for success on the east and the west, good luck!

@Laura Jackson

I live in New York City where the cost of just being here makes things expensive so I understand your pain. I’ve taken to as-is or expired listing props through agents. Anything anyone’s overlooked because of headache or other reasons.

Or you may have to invest in marketing to off market props that look like they are in poor condition. Either way being a flipper it shouldn’t be hard for you to find a prop with a problem you can fix for cheaper/better than others. That’s your advantage.

In my opinion that really the only way to get a heavily discounted property relative to MV’s in your area.

@Lamont Chen thanks so much Chen. I’m gonna offer at most 300k and see what they say. I figure I can work off the rest and reduce the repair cost. I seriously like the opportunity this prop presents and start an offer at 250k. Hopefully they don’t get too offended to hear me out.

View report

*This link comes directly from our calculators, based on information input by the member who posted.
Hello BP community hope yall are having a wonderful day. They always talk about being the one to find the solution to a problem property because thats where the money is, well I found a problem prop.  A quick estimate from my contractor was in the 150k to 200k range, but just to be safe I assume 250k. I was going to be putting as much sweat equity into the place as much as I could but 250k is a safe place to start. The home is near a popular part of yonkers so it's going to see massive growth in the near future. The home is on the path of progress and will see great growth. But my lender doesn't feel safe lending to me yet (I completely understand) and I'm afraid all arrows are pointing in a different direction. 

Im not sure if this is a good idea to invest my time into and im getting mixed signals. I seriously appreciate any input as this is one of the scariest things ive ever taken up. 

Quick facts:

Asking price: 425k but im hoping to talk him down to atleast 350k. 

(Theres a log holding up the foundation beam in the basement. And its been on the market for a year and a half. So i expect its just a money pit right now.)

estimated Rehab costs: 250k(not including any sweat equity)

estimated Rehab time: 6-9 months  (To be conservative I assume 11 months)

ARV: 675k (Last comp pulled a few months back sold for 675k.)

View report

*This link comes directly from our calculators, based on information input by the member who posted.

So I watched alot of Brandons videos on analyzing a prop so I keep an eye out for high CoC / annualized return / Cashflow & expenses. This deal seemed interesting for the BRRRR / house hacking method I wanted to do. The only problem is the asking price is $425k. I ran a comp check and found an ARV of around 550k but this home (as seen in the photos) is in complete disrepair and needs a full gut rehab.(I assume this would be a little over $100k. Ive never rehabbed so I need to be sure.) There is a basement so if I can live in it and get all the rooms rented Im looking at a 6k rental income. The numbers seem good on the report but something tells me this isnt necessarily a good deal since its been on the market for this long. I mean his asking price seems way too high for a property in such poor condition. 

Can I get some advice on what im missing or if this seems normal? 

Thank yall very much.

P.S - My numbers are conservative on returns.

Is it possible to convert a Co-op building into a multi family property without a board, on purchase?

Thank you very much!

@Will Fraser

I was hoping this wouldn’t be the answer but Atleast now I know the answer. Thank you so much Will. Now I can tell why it’s so important to find an area and know it’s market.

And even though you didn’t mention them. I figure experienced investors in my market would also be a good idea.

I read a post on accurate comping. The author showed me how to make relative ARV comps(comparables) closer to the property I'm analyzing.

He’d take three of the closest comps then find where the comps differ and increase or decrease their value based on the prop he’s analyzing.

Ex. He would calculate the cost of an extra bathroom($1000 per additional bathroom) or additional sq footage into his comp to match the features to the home hes analyzing. For a more accurate comp not just a ballpark estimate.

My question is how did he know how much an extra room would cost or the additional sq footage would equate to? I have a feeling I’d only know these answers if I was an experienced investor. Is there a way for a new investor to calculate these factors into my comps for a more accurate comp analysis. Is there a database or guide that gives a price to each of these variables?

P.S - He goes into deeper detail with home age and garages also being factored in but I feel like if I could Atleast learn the most important stuff like rooms and square footage I'd have a better idea of what my ARV would be. And feel more confident to act without fear.

Please help and thank you for any advice!