All Forum Posts by: Kayla V.

@Travis Sperr We have the cash to purchase and rehab the house, so there wouldn't be any holding costs for a hard or private money loan, just the opportunity cost by not having the money invested elsewhere. Which honestly, we've had the money sitting in a checking account for a while as we wait for a deal. I didn't detail it, but we'd have $75K in and be able to refinance for $77K, so I was assuming that extra $2K would cover the closing costs on the refinance. 

The property is in Ohio. I live in Denver now (and have since 2010), but just moved from Ohio where I was for a year for work so I'm familiar with the area.

@Nirmal Khanderia Agreed- the rehab costs and the ARV are my main concerns. I think this is pretty conservative, but as this would be my first full rehab, tough to be sure. This number is from a rough run through but I'd get more detailed if we move forward.

@Thomas S. So you're saying that the $33K in equity that we'd end up leaving in the house makes it a bad deal, even though that would be forced equity? 

Hi all- I think I've found a house that will make a good BRRRR. Do you agree?

Property: SFH, 3 bed/1.5 bath

Listed: $59,900 (MLS, part of an estate)

Offer: $50,000 cash

Rehab: $25,000 

ARV: $110,000

Rent: $1200

Vacancy: 8% ($1152/year)

Taxes: $1596/year (assessor's website)

Insurance: $1200/year (estimate)

Capex: 10% ($1440/year)

Repairs: 5% ($720/year)

Property Manager: 10% plus 50% of one month's rent ($2040/year)

Assume tenant pays all utilities.

Refinance after 6 months at 70% LTV ($77K), 5%, 30 years: $415/month

Cash Flow $106/month after the refinance with no money left in the deal and $33K in equity. What am I missing?

$4000/month for a 4 bed/4.5 bath, 3200 sq ft SFH in the Platt Park neighborhood of Denver.

I just signed up! Looking forward to it. 

I have some accidental experience by renting out a home that was originally intended as our primary residence, but I recently started learning about real estate investing "on purpose". My biggest obstacle right now is location- I live in Denver but I'd like to look out of state due to the high barrier to entry within the city. I'm looking forward to networking and hopefully learning something that pushes me over the edge to start making offers!

@Matthew Rollo Good to know- I'll contact my agent and have them reach out. 

@Chris Mason Awesome feedback- I really appreciate it. Since it's in fairly rough shape, I'm not sure I'll be able to get financing on it anyway. But I hadn't thought about just paying the realtor commission myself. It's listed for only $44K, so it wouldn't be a huge amount of money. 

I found a property on Craigslist that seems like a good BRRR candidate. It is FSBO. I drove to the property tonight and I liked the neighborhood and would like to learn more.

I have an agent I was planning to work with, but aren't most FSBO sellers seeking to avoid paying agents? Do I just email the listing and negotiate with the seller directly?

Thanks!

@Cheryl H. Thanks! I registered and paid online. 

I have identified a couple neighborhoods that are becoming a bit more trendy (Highland Square, near the river and businesses in Cuyahoga Falls, Goodyear Heights) and have solid blue collar residents. But even within those neighborhoods, it's not too tough to find properties with good numbers. Several properties I've looked at even have existing long term tenants and the current rents are given. 

Based on the number of people on BP investing in Akron and the number of times I've read that the good properties are 1 in 100, I feel like I'm missing something. 

I'm looking to purchase a 2-4 unit property in NE Ohio (Akron/Cuyahoga Falls). I'm looking via Zillow/Realtor, but I'm finding multiple properties that look "good". They all meet ~1.5%, good cash on cash, ~$150+/door cash flow. How do you further narrow it down and make the right choice? I currently live in the area but I'm moving in 8 weeks, so I'd like to pull the trigger before then. 

(My assumptions when analyzing properties are:

Debt Service: 25% down, 5% loan for 30 years

Vacancy: 8% 

Property taxes: county assessor's site

Property Insurance: 0.3% of purchase price per year

Property Management: 10% of rent

CapEx: 5% of rent

Regular Maintenance: 1% of purchase price per year)

Thank you!

@Al Jacobs Since he lived in the property for more than 2 years, no capital gains taxes are owed on the sale.