All Forum Posts by: Lauren Brown

@Bram SpieroGreat advice on the vacancy allowance and maintenance increase. I should use a higher percentage when going down in class grade, which makes complete sense now. Thanks for that tip. 

@Jeff Greenberg Will I ever see the cash flow I'm projecting is a good question. I received the electric, water, trash and insurance monthly expenses from the wholesaler but I'm taking caution with these numbers until they are verified. The Vacancy Rate, Main., PM and Cap Ex are averages between 7-10% that I used based on the class of the property. The monthly property tax expense was based on the 2015 taxes I found on the cities website. I took this number and divided by 12 to get the monthly average. Again with this estimate it could stay the same or increase.

Hello BP Community

I found a deal and contacted the wholesaler who had the property under contract. He provided me with the property breakdown and utility costs. The lead consists of two properties being sold as a package.  Property A is a duplex with a single family home and property B lot consists of a triplex with a garage that has two efficiency units. What I'm questioning is if the numbers check out and the property is in a Class D neighborhood according to the city would this still make a good deal. Also I'm not sure if I may have left something out of my calculations or if I should take anything else into account. My end goal is to have properties that generate minimum $200 cash flow a month.

Please let me know your thoughts, I'm not sure if I'm missing something in my calculations. Also I calculated the numbers below based on a loan term for a package deal. Is it possible to get a loan term with a lender that covers multiple properties sold together as a package? 

Cost Assumptions
Purchase Price	$285,000.00
Closing Costs at 4%	$11,400.00
Total Cost	$296,400.00
Mortgage at 30yr/5% Interest /20% down	$1,223.95

Monthly Expenses
Monthly Rent	$4,500.00
Electric	$250.00
Water	$200.00
Trash	$100.00
Vacany Rate 8%	$360.00
Maintenance 8%	$360.00
Property Manager 10%	$450.00
Insurance	$300.00
Monthly Property Taxes Due	$121.97
Cap Ex Reserve 7%	$315.00
Total Monthly Expenses	$2,456.97
Less Mortgage Payment	$1,223.95
Theoretical Cash Flow	$819.08

Cap Rate	Cash On Cash
8.6	14.37

Hi @Rachel Pervis

Thank you for your advice. I find it strange that HCAD has it listed as a Single Family residence with a 0 SF lot size. Maybe thats their way of classifying a stand alone town home. Not sure, but I'll start looking up comps for the town homes and see what I find. Thanks again!

Happy BDay @Joshua Dorkin

I have a lead in Houston, TX and while researching HCAD the Land Area states 0 SF and the total living area is 2,763 SF and will be a 4 bedroom 2.5 after remodel. The property has a class code of Single-Family and is in a class B area. The property has a closed in back patio and separate atrium and small lawn in the front but no back yard. The walk space on the each side of the house is very narrow. The property looks like a town home but is not connected to the homes on either side and is a SFR. My realtor has confirmed the comps, but he also stated the land area is 0 SF as opposed to the comps that have minimum lot sqft of 8,810.

My question is would this house be comparable to the comps when determining the ARV even though it's lot size is 0? Any advice and education on how to analyze the ARV on this type of property would be great.

Doran Summers Would you mind sharing your lenders information with me as well. Please PM me with details.

Is anyone in the BP nation an experienced multifamily investor who wants to purchase turnkey properties in Houston, TX?

I am a humble new investor in search of an experienced commercial investor who could partner with me on really good deals I have access to. I am open to working out the details and specifics of the partnership. I have a broker and realtor duo team who can find me turnkey multifamily properties that are not on the MLS. The rehab has already been completed on these properties. These deals are priced over the $1m mark. If anyone is interested and want to discuss further please send me a private message or leave your information here so I may contact you.

Happy New Year BP!

John Cohen I'm starting out with wholesaling and I have my target area but I'm finding it challenging to find the best resources to use to build a list of motivated sellers. I'm not quite sure which type of list to start with, Owners who are absent or homes with high equity, etc. Do you have any advice or recommendations on this topic?

Correction: 

Do anyone have any recommendations for finding hard money lenders who lend nationwide and companies who offer business lines of credit to new investors with credit scores of 620-660? 

Austin/Houston/Texas

-Happy Holidays BP