All Forum Posts by: Nathan Platter

Hey @Luke Davis ,

Step 1 in all deals is determining what kinds of funds you have available to you. Discuss your situation with a lender/mortgage broker to figure out your price range.

Also, the lender will be incredibly helpful in providing all the nitty-gritty details for you. Make sure that the total rent (for both units) are enough to profitably pay for you to own the building if/when you move out.

No need to look at insurance until you approach closing on the property.

Go get 'em!

Hey @Demeko Morgan .

I found my first deal through my realtor, looked at 20 properties before finding a househack.

As for now, I work with wholesalers who are marketing and contacting owners all day every day. 

As for the first flip, go with these margins for "napkin math" to quickly evaluate it.

• Buy for at most 50% of ARV
• Rehab for at most 25% of ARV
• Sell for 100% ARV

That will help you avoid overpaying. Sure you can pay 60% for acquisition and 10% for the renovation, but never ever pay above 75% ARV for your Acquisition+Renovation costs. You still have utilities, taxes, insurance, realtor commissions,...

Hey @Frankly Franco ,

You'll need Closing Costs, so add $3,000

Unless the house is brand new, you'll need repair costs. Add $10,000

What is appealing about this deal? You're projected to lose money every month. Banks will not lend if they know you'll be losing month every month, the deal needs higher rent.

Hey @Corie Carpentier ,

You could also consider the Family and Friends option for raising funds.

If needed, you could also look up Hard Money Lenders that would help fund your transactions.

CLICK HERE FOR ALL PICTURES

Off-market 1.5 story home in the Jordan neighborhood of Minneapolis!

Currently 5 bedroom, 1 bathroom. Easy walk to local park and school.

Property needs cosmetic updates throughout.

Great area for rentals. 

Rentometer shows the average rent for a 5 bedroom in the area is $2,049/month

Current tenants are moving out June 30, 2018. 

Hi @Richard Vining ,

We often tell the sellers that we intend to keep the property (which is true, we rehab fulltime) but we also tell the seller we may assign it to another seller if we are unable to properly improve the property at this time. We want to keep it, but can't 100% guarantee that we will.

Hey @Qwee Parker, 

Welcome to the forums! It's good to know what you're looking for (2-4plexes), if you can do a 5% down then you'd qualify for Conventional loans. Sellers often prefer Conventional to FHA loans since there are fewer quality requirements to sell to the buyer (aka you)

Go get 'em!

Hey @Corey Jacques ,

Estimated repairs looks low. $10k doesn't go very far, perhaps some interior paint and maybe 1 new appliance. Most likely will need additional improvements before fully rent-ready (depending on the neighborhood standard)

Management cost looks low. Property Manager's in St. Paul typically charges 8-10%, so 3% won't be enough.

Unless your rent amount is way under market, you'll need to increase your Vacancy rate to 8% since 8% = 1 new tenant every year and 1 month to turn the property over.

As a whole for Expenses, looks pretty good.

I don't see a major benefit of refinancing after 2 years if your loan amount remains the same. It typically costs a few thousand dollars (e.g. $5,000) and you'd need more savings than costs to justify the financial restructuring.

St. Paul can have some very low-rent neighborhoods (Dayton's Bluff, Phalen) and those rent closer to $1,000 so be incredibly confident about the rent amounts. Property Managers can often help you fine-tune that amount.

Overall, make sure for sure that the rent is accurate and increase non-finance estimated expenses to 50%. Basically, all expenses (excluding PI) to 50% of Rents, then subtract off the P&I, to get estimated net profit. The deal might be a little more slim than initially estimated.

Walkthrough Video

Off-market up/down duplex in Uptown! Perfect location for a rental!

Total of 3,000 Sqft

Upstairs unit

2 floors and features 3 bedrooms/2 bathrooms + office

Lower Unit

2 bedrooms/1 bathroom.

Both units are currently being fully renovated. New floors, windows, kitchen cabinets/countertops, stainless steel appliances, completely new bathrooms. Will be completed before closing.

IDEAL OPPORTUNITY for owner occupant! Walking distance to restaurants and shopping areas. Very close to lakes with great rents in the area. The above rents are Rentometer's averages for 3 bedrooms and 2 bedrooms nearby.

Conventional financing okay.

@Michael Shyu done!

@Richelle Bryan done!

@Jesse Copjec done!