All Forum Posts by: Julius F.

Thinking of living in the house first (house hack) with roommates and then fully rent out the 3 bedrooms later.

House: 3 bed/2 bath 

Asking price: $337k

Offer price: $292-310k

ARV: $330k

Rent: $2600 (2 bedrooms: $800 x2; basement: $1000)

Closing cost: 5k

Agent cost: 3%

Downpayment: 3% down

Loan rate: 5%

P&I: $1614/mo

Taxes: $328/mo

PMI: $100/mo

Insurance: $100/mo

Vacancy: 5%

Repairs: 1%

CapEx: 3%

Management: 3%

Cash flow: $146 - 240/mo

Cash on cash: 12.25 - 20.91%

Thanks for the welcome @Ned Carey I appreciate the advice. I will definitely visit the Capital City REIA.

@Navid A.Welcome to the BP community! I just joined myself as well. Thank you for your service! There is a ton of really great information and it can be a bit overwhelming/intimidating at times. My advice would be meet/connect with others (online or in person as others have suggested), try to decide on a starting point of what you want to do first, and then start asking specific questions to the BP community and put what you learn into action. Good Luck!

@Russell Brazil Thanks for the explanation. That makes a lot of sense. 203k are at the bottom of the barrel. If I was a seller I would go with the fastest option. Thanks again!

@Doug W. Thanks for clarifying the $250K tax free.

@Dan Bernstein I am looking more long term and keeping my options open and I thought a 1031 would be a good choice. Since I am starting small, I would like for the possibility to have my investments snowball and invest  in bigger investments in the future. Thanks for the advice though. I'll PM you.

@Dave Foster Thanks I appreciate the letting me know. I'll have to do some more reading to get a better understanding of a 1031 and the requirements.

@Russell Brazil Why is it hard to do a 203k loan in Alexandrai?

I was not suggesting that the house is mispriced, only that the numbers seem to work better at that price for a rental. This is my first analysis of a property.

I have started to look at properties in Alexandria, VA because I want to be closer to work. I was originally thinking of renting, but after listening to BP podcasts I thought it would be better to just buy a house and rehab it to get some experience in real estate and the rehab process.

My idea is to rehab it (doing a 203k) and live in it for a year or more and either turn it into a rental or do a 1031 (thinking that the rehab will increase the equity in the home). Because of the location, I feel that the area will grow and the pricing of houses will go up making my house more desirable. I saw a house that was listed at 0.5 million (although, it is not really comparable since it's bigger, i.e., a house 4b/3.5).

Looking at some estimated numbers it does not appear to be a good rental property.

Some of the numbers I looked at are as follows: 

House: 2b/1b 816 sq. ft.; Lot 3650 sq. ft.

Asking price: $345K

Possible offer price: $250-300k

Rehab cost: $60k (estimated, not sure of any issues but looks as if it needs some work from the outside)

AVR: $412k+ (estimating based on realtor.com)

Rent: $1800 (not including utilities)

Annual Taxes: $4,734

Another thing is that the realtor said the buying process was complicated. I have not talked to her in detail about it yet, but it makes me a little suspicious. 

My thought is that after rehabbing and living in the house for a year worst cast I can sell the house or do a 1031. Wanted to get some others opinions. Thanks!

Hello, 

I am still a newbie and learning, but I was wondering if anyone has every done a complete flip where the house demolished and rebuilt from the ground up? Does anyone have any experience with this and has a possible estimate as to the cost for the demolition of an old house and construction of a new house?

In my area I am seeing this quite often, but I get the impression this is for investors with tons of capital (or a bigger company). I was just curious to get others opinion on the topic. Thanks!