All Forum Posts by: Neddie Smith

My recommendation for this question is to use the techniques from the book "Profit First" from Mike Michalowicz. I too am just starting out and will start next month using his suggestion. The simplicity of his method allows me to track income and expenses simply by looking at my bank statements. 

Great Job and congradulations! 

I'm in the process of getting my first deal. I look forward to duplicating your success. 

@Jason Bott, @Michael Norris Thanks for the replys. I forgot to mention that yes, I am rehabbing a buy and hold SFH. I'll get in touch with both of you for details.

HI BP,

I am in the process of securing my first rental property and need to find a company for insurance. Does anyone have suggestions regarding good landlord insurance companies in Columbus Ohio?

Also are there differences in coverage during the rehabbing phase and final renting to tennants?

Thanks in advance.

ok thanks everyone. I went the screenshot route to get this done.

A question for the pros here. I am looking to buy my first property and to make the offer, my agent is asking me for something that proves I can make a cash offer.

What are the typical documents I would need to show?

Because I am living overseas, I do not think a letter from my bank written in German would be any help.

Hey John,

calcualtion 1 & 2 were just to reference the two items on the BRRRR calculator - "Total Cash needed at Purchase" and "Total Cash Outlay".

So let's just ignore the Total Cash Outlay, I do not understand it either and it is not explained in the BRRRR calculator.

I completely agree with your equation for Total Cash needed at Purchase.

Regarding the Rehab phase, the monthly interest payment is being paid to the hard money lender during the term of the loan - correct?

After thinking about it, what I am looking to understand is if this equation is correct:

Total Cost of Project (in cash) =  Purchase Loan Down payment + Loan Fees + Closing Costs + (Estimated Repairs + (Rehab Duration * (Expenses + Monthly Interest payment ))

Is that correct?

Thanks!

Warning: Newbie questions contained below :)

I have been testing the BRRRR Calculator and my train of thought tells me two values should be calculated differently.

Calculation 1: Rehab - Total Cash Outlay

Currently this field does not seem to add Aquisition Loan Points/Fees to the Total Cash Outlay. Is this correct or am I missing something?

Calculation 2: Refinance -  Total Cash Invested

The equation seems to be: Total Cash Needed At Purchase - (Refinance loan amount - Purchase Loan amount)

My thinking is Total Cash Needed at Purchase should be exchanged for Total cash outlay because the purchase loan is being repaid with CASH during the rehab phase. The CoC of course would be affected here.

Let me know if I am just overthinking this. 

Cheers

@Matt Stewart and @John Horner as locals that gives me a good barometer to start with. 

@Account Closed I'll hit you up with your offer shortly. 

Thanks everyone for the awesome answers to my question.

Excuse me if this is a newbie ignorant question but.... what areas in Columbus would be considered B or C neighborhoods? If anyone has any tips on local online resources that could point me in the right direction, that would be great.

Thanks in advance!