All Forum Posts by: Matthew Koch

Just wanted to run the numbers for this property that, yes, I've posted before as an attempt to wholesale to no avail, and now trying to see if I could get it for myself and flip it in two years?

Purchase price 360k 

current ARV is 490-520k

looking to be financed by me with JV or private money lender for 20% down, $72k plus rehab of approx. $90k to total $162k

maybe offer lender 12% with a note of 20 years, or 240 months equal 756 a month

total financed would be $181,440

property is 8 bedroom and 3 bathroom but could easily be 4th. 

I'm thinking student housing and 300 per bed and two beds per room or 600 per room and 4800 a month. Gross. Evaluate for 100 in water, 100 insurance, 400 property management and 100 for power to be billed back to the students as that's Included in rent for 300 per bed. 

4800 income, at 100% occupancy, 1717.19 mortgage based on 30 years and 4.2%, and private money lender payment of $756 

leaves $2326.05 to then take out capex.

not sure on those items yet for actual numbers on roof, heating unit or landscaping expense, however, estimate roof of 10k or hold back $168x5 years.

Leaving $2158.05

heating unit maybe $5000 or hold back $84 bucks. 

Leaving $2074

Water heater possibly $200-$1000 so hold back $17 bucks.

Leaving $2058.05 cash flow.

Unless I missed something, does this look right? $4800 income (100% occupancy), $1717.95 mortgage, private money lender $756, capex $268 a month is $2058.05 or $1029.025 at half vacancy. 

Maybe $100 a month for yard or lawn care or I'll manage that part of it myself.

Property Manager should take care of advertising and screening tenants as well as showing property and finally completing work orders as needed and billing me directly....

Is this a deal or walk away?

Thank you

Excellent. I'll check it out. Thank you, I appreciate it very much

Currently in the Twin Falls area and I'm looking for a good Bluetooth capable recording software as I drive it front and loader all day at my job recycling cardboard and twine so I'm terrible at taking notes and if I'm on a call with somebody to talk about real estate I can't always stop and write that information down but I would like to invest in a pro recording software that has clear audio even if it's $10 a month I don't care I would like to find a recommendation for what other people are using preferably on the Android network as I've tried a2p recording, I've tried black box, I've even used the free stuff for record this And it seems there is an issue with the actual recordings not being processed for playback to hear them. As I mentioned I'm on an Android device using a Google Pixel 4a model and my earbuds are Klipsch brand, McLaren edition, on the Verizon network. So feel free to reach out to me and let me know what software to use and in return if there are people that don't have time to call people back such as leads that you're not able to take and they are being sent to a voicemail service maybe instead of hiring a virtual assistant in another country feel free to hit me up If you have a script you want me to read I'll do that I'm trying and testing that out right now for a person who is investing in or from Utah but they're looking in the Florida market. So the trade-off is I would call this cold call for them and I would talk to them fill out the information get as much info as I can about the house for that lead and then have these questions checked off and answered to see if it's a good deal to pursue because I have time on my hands Yes I have a full-time job 10 hours a day but that is what I'm able to offer so if you are in the Twin Falls area or surrounding areas or Boise or technically anywhere I'd be willing to jump in and help with that portion of it if people need me to All that I ask is for a couple of things One to hone in on my deal analysis because honestly I'm kind of bad at that right now Also the rehab factor for estimating repair costs on properties and then one final thing is of course knowing the market value of a property and that's more of an MLS type of thing and I have a couple of people I can reach out to but I'm looking for those three things. So let's work together find a match see how we can help each other and let's make some money!

Is it possible to lock down a deal to where If i put in my earnest money deposit and I find the back end buyer and they only want the property at 300k and the seller wants 360k, can I or am I legally able to make it create a note, or do I need a mortgage originator, to then close on the deal for 375k for my profit of 15k, the seller gets their 360k and the backend buyer would purchase at 300k from me? Meaning the terms of the note would be that I hold the note and carry it for 5 or 10 years and allow the seller to move out, backend buyer come in and rehab the property, get it sold at an arv starting at 490k and up 525k, then when they are done and completed then the contract is paid in full and everyone is square from there? If not then this deal is not such a deal after all.....

 I did already reply to you and personal message. Also I agree and you are correct that is a slim deal and I would be willing to work with somebody just for getting that out there to have a little something that nothing at all and if it is 5K then I could be happy with that. Ironically this is just one of those deals that I had spoken to the seller first and I was going to get it under contract personally and he literally told me he would give me a week and the very next day he talked to a realtor and the realtor told them that he could get 20k more And that's why I was on the ML last listed at 400k because the buyer wanted more money than what it is currently worth in the houses state and current condition and the fees involved now with that realtor and such.... All I'm hoping to do now is to get beds for actual rehab estimates and hoping that I'm not even close to that 50k rehab budget because a good portion of the materials to finish it is already there not all of it but enough to cut down on that cost for sure.

 I appreciate the reply, the video was made by me and I was physically there for the walkthrough. Also, update for about the backend buyer, now. He estimates the rehab conservatively in 90k and he wanted a 35k profit plus 20percent and hold time of 6 months and he would want to buy it at 300k.... and unless the buyer is local and doing the work himself for the fix and flip then this wholesale deal to him is to narrow and dead for now.. maybe I could pull a hell Mary type of action and hit up a hard money lender and buy it myself and go from there but I'm thinking that also is impossible at the price I signed up for to buy it at 360k..... I'll think of something 

You know how it said that knowledge doesn't mean anything unless you use it or put it to the test!?!?

well for me to be honest and transparent in this adventure of mine putting in offer ever for a house this time it's my first wholesale offer coming from the MLS and although I have watched and listened to almost 400 episodes of the podcasts for bigger pockets the state investing side of it and I ran my numbers through the whole sailing calculator to give to a flipper, I'm always unsure of myself, simply because I did my numbers conservatively not only for overestimating a little bit on the rehab but underestimating the ARV that way there's that wiggle room on both ends and by my calculation a process like this the end result is 20 grand for my back end buyer.

My question is if I go ahead and post the numbers, can I get a little reassurance that even though this is a slim deal for profit in the end that a deal is better than no deal and I just want to be sure I am correct on the numbers so I don't hurt nobody I don't screw nobody over and I'm completely upfront and honest about the whole thing Also if I may have missed something someone can suggest it but going through the pocket calculator it looks sound and good to me....

located in Kimberly Idaho 83341

eight bedroom soon to be four bath house monstrosity

MLS listing price 400k

My purchase price 360k

estimated ARV confirmed by local bigger pockets member Jeremy Orton of Keller Williams real estate and 15 years of agent experience, between 490k and up to possibly 520k

estimated ballpark rehab because the house is only 80% done and I have a video walkthrough to share if anyone would like to see it and some of the materials to complete it is already there on site in the house, Maybe 50k in rehab

agents commission $29,400

closing costs $1691.92 from agent

Holding cost is $7,500 for 3 months accounting for electricity water property taxes, insurance etc

I'm asking $378,400 

flipper profit is somewhere between 20 grand and possibly 49 grand.

I'm open to any and all suggestions and I'll look forward to hearing your feedback I have until August 29th to get this taken care of and sold to a flipper and I do have a back end buyer lined up I'm just waiting on a return call or text from him but I'll always want to have a backup b or c plan exit strategy.

thank you and I will be in touch.