All Forum Posts by: Van Johnson

@Landon Bleau

Thanks for the response Landon. That was the plan. I was going to lay out multiple options for him. In your experience, what have you found owners to like the best out of your offers?

I saw a duplex on the MLS for a pretty good price listed by the owner himself. I reached out immediately after doing my calculations. He got back to me this morning. I told him I was interested in the duplex, and would take at asking price if everything looked good after I got my contractor/inspector to walk through. He wants to talk this week. I want to negotiate owner financing with him. What would be the best way to approach this with him? This would be the best option for me financially. Thanks

@Duane Alexander considering the estimates are correct, what would you do with your profit?

@Evan Polaski I love hearing devils advocate perspectives. It makes my deal feel more comfortable when I weigh in all possibilities. I have a few other contracting friends to look over the project as well to make sure I’m not getting screwed. I made sure to have a few back ups in place just in case things go wrong. In your shoes, what would you do in this position?

@Rob Westerman My costs were based on quotes from my contractors. I’m subcontracting plumbing & electrical. I say estimates because until we start tearing down, I won’t know the full picture. This market I’ve found is cheaper when it comes to my cost for everything like inspections, appraisal, etc.

@Evan Polaski This was definitely something I kept in mind when calculating my budget. I hired my agent as my contractor also. He helps me keep that rehab low with providing quality work. One stop shop you could say.

As far as the ROI, I believe I could sell for more than the ARV based on comps selling in that neighborhood for $91k. Another option I was considering was refinancing the property after rehab and rent it out. My only concerned was my exit strategy if I could get a term long enough.

What’s going on out there? I wanted to get some feedback and thoughts on a recent deal I have under contract. I’m an investor in the Central Arkansas market currently making my first flip happen. I believe I got a pretty good deal. Below you’ll see a brief summary of deal calculations.

2/1 single family 900sqft

Purchase price- $10,000 (originally $20k before negotiations)

Rehab- Cosmetic$18,000

Electrical- $2,000

Plumbing- $2,000

Porch Foundation- $7,500

Unexpected Misc - $5,000 = $34,500

ARV - $80,000

I'm currently working with an ARV lender giving me 65% LTV ($52k). Only cost at closing are around $6k and another $6k in carrying cost. What do you all think of this deal? Also any tips on the whole process (rehab, dealing with contractors, etc.) Thanks!