All Forum Posts by: Michael Goodman

Marcus, 

Just saw the property come up on the MLS I think last week, and all offers due by 5/15. There were group showings on this past Friday and this Monday. It was just a multi-family property that came up local that was rented, thought I'd reach out to the realtor for a rent roll and practice running the numbers on it. I'll keep the listing saved to see what it sells for. Just trying to practice, practice, practice.

Thanks for the reply Ko! I missed a "%" for the appreciation and have fixed that. Just want to be sure I'm not missing anything critical. For this one I did reach out to the realtor and get the rent roll so figures are based off that, current owner did say rent could be Increased a little to market. So I went conservative and kept current rents for the spreadsheet. 

Marcus, Thanks for the feedback. I never knew that, lets try again with the link below 

Here

And I agree with the assumptions you've made too, I thought it had some basement photo's but got it confused, I've been trying to look at a ton of properties to get familiar. I haven't seen it in person but know of the area, 2 friends used to live there. Would I like the area to be better, sure, lol, it's not an A. But it well fits within a scope of my purchasing power. I've only got about 60k to deploy right now. 

And I love the final comment, classic case of if I use these fancy words, it'll make me seem like I know what I'm doing. I hope the link worked and keep em comin!

Hey! Back again as I'm trying to hone in my underwriting. Got this sweet spreadsheet from Coach Carson and plugged some numbers in for this local duplex that just came up for sale. Assumed purchase price at asking, got the rent roll from the listing agent, currently rented 0% vacancy, and made some assumptions on taxes, owner paid utilities, etc. Let me know what you think and if there's things you'd augment or change! I appreciate any feedback and thank you for your time in helping me out :)

Note: First time linking a sheet so let me know if it doesn't work

Property

Spread Sheet

Thanks for your replies guys! Jacob I should have labeled "RGE" better as that is our Gas and electric estimated at $120/month. I could give the town a shout to get a more dialed in number for the taxes but your right, NY property and school taxes are insane. 

Preston - I was going to say theres no way that property would go for under or at asking haha I'll keep an eye on it to see how it progresses. 

Calvin - Thanks for the advice, I probably should have put a buffer into the reno budget.

Any other suggestions are always welcome and I appreciate your guys time! I'll keep practicing underwriting, and getting members of my "core 4" as David Greene would say, down and am excited to start this journey. 

Hey guys my name's Mike,

I think it's my first time posting and have been doing a ton of reading and research, want to finally make the leap into real estate investing. Chatted with a local realtor I've used in the past that also has investments. Currently have no doors and want to practice some underwriting. A property came up that's in a good area, my back yard (Rochester NY), seemed cheap compared to the neighborhood, and wanted some practice. Threw this together in a windows notepad this morning quick, all figures are assumed and have not contacted anyone yet for specifics. I'd appreciate any feedback you've got to give as I can only learn!

Property: Here

Comp: Here (Sold on 8/1/2022 same street)

84 Grangerford Hts, West Henrietta, NY 14586

Listed : 100k

HML at 80% of ARV (240k) = 192k
Interest only payments (10% interest)(192k x .10) /12 = $1,600/month
Points = 2 (192k x .02) = $3,840
Loan origination fee's = $1,000

Additional monthly holding costs:
- Taxes (5k/12) = $416
- Insurance = $60
- RGE = $120
Total monthly = $596

Duration of rehab = 6 months
Interest only ($1,600 x 6) = $9,600
Points = $3,840
Origination = $1,000
Holding costs ($596 x 6) = $3,576
Total Holding costs = $18,016

Loan amount of 192k:
Subtract:
- Purchase price = 100k
- Closing costs (4%) = $4,000
- Rehab = $50,000
Totaling = $154,000
Remaining balance on loan= $38,000

Sale at $240,000:
(-) (Realtor fee's (6%), closing costs (4%)) = $24,000
(+) $38,000 Remaining from HML
(-) Holding costs ($192,000 + $18,016) = $210,016
Profit ($240,000 + $24,000 + $38,000 - $210,016) = $43,984 - (capital gains at 22% completely estimated) = $34,308


Buy and hold:
Appraised at $240,000. LTV at 80% = $192,000 - closing costs ($4,000) = $188,000
Profit = (re-fi $188,000 + HML remaining $38,000 - holding $18,016 - HML $192,000) = $15,984

Biggerpockets rent estimator is around $1,800 - $2,000 so should meet the 1% rule. Some context behind the initial choice for the HML is I don't have the liquid funds to support the purchase and rehab costs. I do have funds saved for investment purposes and equity for a HELOC in my primary. Let me know what you'd do different, what I didn't account for, what you'd change, Thanks!!