All Forum Posts by: Nicholas K.

@Nicholas Krogmann

This may be a dumb question, but where are the numbers for the deal? When I click the "calculators" link provided it just takes me to the various BP calculators offered (at least on my mobile device).

Hello Nicholas, thanks for sharing your report.

How did you price your 40 k rehab budget?   

I own a construction company and pricing things right is hard for someone who does it ever day for 20 years.  

There is not much room for error with your arv and rehab cost.  

If your looking to fix and learn then go for it, if you dont have much time i would pass.

Good luck!

Hey Nicholas! Management fee looks really high at 13%, why is that?

Newbie investor looking for his first property to newbie investor in the same shoes - there are a couple things I'd consider:

I'd consider total cost: Is the 80k price what they are asking, or what you think you can get them to agree to? Can you get them UNDER that amount? If the place needs THAT much work, they might be dying to get out of it, and like they say - you can make all of your money when you buy!

I'd consider the age of the property. Yes, you're looking at high rehab costs off the bat, but make sure that you don't end up getting screwed in a few years paying for someone else's Cap Ex. How old is the roof? HVAC? Stuff like that.....the calculator assumes that cap ex is a percentage over longer periods of time, but wont be accurate if you get slammed with buying a new roof 5 years into owning the place! (Don't let this spook you though - just use it as justification when you try to get that purchase price lower!)

Last major consideration: This is your first property, so pad your numbers conservatively. Assume your rent comes in a little less than the $1500 monthly. Assume that most of your costs aren't 5%, but closer to 7-8%. Take what you think your costs will be and double them! I'm not telling you to talk yourself out of this deal, but be realistic in terms of how much time and cost this will take!

Personally, I think that the calculator shows OK numbers, but only if what you've entered is SOLID.


Any other folks with actual experience agree or disagree? Please drop some knowledge!

T.