All Forum Posts by: Kenny Kuramoto

I wanted to see If i got this explanation right on this Hard Money Lender. I know people will have this question so here is a sample sheet I have. For context this my first BRRR so thats why the rates are probably high.

I was wondering a couple things

1. Estimated Cash due is what I have to put in? Is it my Down plus fees? 

2. How is my Down Calculated?  25% down of the Purchase Price?

3. They are only offering me 65% of ARV ?

Thanks everyone!

I'm going to the property tomorrow. Its in the midwest. I'm just trying to see a limit on if the rehab is going to cost if its over 30k it will be a bad deals and under 30k will be good. So your saying its a good flip? I wish it was a BRRR as thats what I'm trying to find but the cashflow isnt going to cut it...

Thanks everyone

View report

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

I have been searching and got a lot of articles and posts pre covid. Now its 2023 and pricing is higher than before what are people getting quoted for rehab. For side note, This home is in GA.. The Current owner is trying to do the reno himself and I think he is going over his head. Here are the details if it matters

PP - $200,000 going to offer way less

ARV - $400,000 this was hard. there isnt any home in the area that sold as its a high bedroom count

Size - 2000sq/ft

I got one quote already for $250k-$275k which includes new roof and siding and windows.

I'm trying to see if its worth it to use Hard Money and BRRR or Flip the property.. I just cant figure out how much construction costs will be.

I second @Julie Gates Shes very responsive and has been so much help. She has a couple MTR in the market so She would be who I would reach out too. 

We need more info. But See if there is something you can do to increase the appeal to make it look more desirable. 

I want to see if this is how people analyze their property. 

PP= $100k

ARV = $175k

Rent = $1400

Rehab Cost = $40k

Property tax = $500

PM = $100

Utilities paid by Tenant.

Is this right?

Cash Purchase Closing Cost + Rehab + Refi Closing Cost= Total Cash invested - 2k+40k+6k = $48k

$175k*75% =  $131,250 New Loan Amount

PP+Closing+Rehab = $148k-$131k = -$17k. Short $17k means unsuccessful. Is this correct?

For the Cash Flow

$1400-873(Refi Loan)-$100(PM)-$100(Insurance)-$210(CapEXMaint)-$100(Vacancy) = CashFlow $17. 

Too low. 

Is this a good rough draft?

To be honest, I don't think anyone is going to tell you straight up invest here because I earned a lot of money here. Your going to have to do the homework youself and pick which type of area works for YOU. Do you want Cashflow vs Appreciation, Do you care about having the ROI come after 3-5 years. There is so much to think about and what to look for. Which of those places has cities grow in population and job growth. Stuff like that. But to shortly answer your question I'm looking in GA and OH. Some cities in Ohio isnt growing a lot but is cash flowing a little bit more. For example Cleveland won't appreciate and has been on a decline in population these past couple years. BUT it easier to find a cash flowing property in a duplex there. Cincy and Columbus is growing with jobs but homes are more expensive. Atlanta is growing super fast. So find places yourself. Do some research. its good practice :)

Also don't forget if you for example want to buy a couple properties let's say 10 SFH for 50k down. Don't forget to add the repayment of the heloc into your calculation. I still think the best use of a heloc is BRRR. I'm having hard time finding BRRR properties though at the places I want to invest..