All Forum Posts by: Les Richardson

@Les Richardson Where have you discovered the only rental that never has a vacancy? Banks will underwrite at 5% vacancy. Have you verified you can get a loan for less than 50k. Have you done repair and capex budgets, they seem a little low. Sub $1000 per month rentals need higher percentage of rents to cover future costs.

Looks good, but in an area where 50K is the avg purchase price I bet you can easily find some good BRRR deals or find some way to add more cashflow without having a huge expense.

Deal sounds tight, try to buy at 100k. Be as little out of pocket as possible and request for a larger balance to be assumed. 

 Since this is your 1st deal ., just flip the contract for 5- 10k. Its highly unlikely anyone is going to loan you money any money since you have no experience. So flip it , learn save then go on your own

Good Luck 

PS do not pay more than 100k, all in 120kish, add 5k for you, so 125k, leaves about 40k im profit, win win , 

I am 50 and have a goal to replace my income, or at least a lot of it by 60. My wife and I have strong W2s and are closing on a 300K HELOC this week. We are in process of building an Airbnb (Den Modern Cabin in Adirondack mountains) in her hometown in upstate NY where we already own 15 acres. I want something to get going here in Indianapolis as well and have a decent start and some solid contractors. My initial thought is BRRRR, but with rates where they are a bit nervous there. Duplex sounds interesting and cash flowable, but I am also thinking of turnkey (looked at rent to retirement) to get my feet wet and not get too buried in my first door. There are so many options, but having 300K HELOC available gets me excited. What would you do? Psyched to learn from you all.

Sounds like you need more than $60k.

-You need $60k to cover the difference between $50k and $110k.

-You need another $5k for closing costs.

-You need around $30k for rehab.

-And you'll need another $5-$10k for holding costs during your rehab.

So that means you need more like ~$100k to pull this off. Still will put you under the ARV by about 15% when you're all done with it. Not a bad deal if you plan to hold it. Just make sure you're confident in that ARV number.

A hard money lender is going to require you to put some skin in the game. How much cash do you have?

It sounds like a Private Money Lender may be a good option for this scenario so long as the numbers work out well and there are plenty of comps to support the 175 ARV. For flooring, paint, bathroom, and kitchen updating on a 950 sq ft property, it shouldnt be too crazy of a rehab. It sounds like a good deal! I would start searching for someone to cover that 60k!