All Forum Posts by: Nick Aquiningoc

@Jun Shin I just read on your BP profile that your from Guam? That's amazing! I grew up on the south side of the island in Umatac! I'll DM you my info! 

@Jun Shin Awesome news! I'm also looking for solid house hacking opportunities in the Hampton Roads area as well. Haven't included foreclosures in my search though which I'll gladly start doing. 

@Jake Davis Hey Jake! Thank you for your input! I'm currently in the process of interviewing realtors right now. Seeing as how all of them grew up in the area I'm looking to invest and hold a wealth of information on the area here, I'm finding it difficult to decide between them.

I'm using the deal analyzer from Dealcheck to run my numbers and saw they had an ARV field. Thought it best to throw in an ARV figure arbitrarily. Now knowing, it's probably best to leave that out for now until I get accurate ARV numbers like you mentioned. Thank you again!

@Jaysen Medhurst Thank you for your input Jaysen! Your feedback was well received. I was also confused as to why the original listing price itself was at $189,900 when the comps were at $140,000 - $150,000. The property description mentioned one of the units being completely renovated and the pictures of those renovations looked very well done (new stainless steel appliances, cabinets, flooring, as well as a new HVAC), although nothing could be said for the other unit. There was an outlier at $240,000 but it wasn't a true comp since it a) Wasn't a multi-family but a SFH and b) Was a 3bd/2ba.

My offer of $160,000 came from my assumption from which I can negotiate the original price down from $189,900. Is the seller just placing this property at much higher market value even with half the duplex fully renovated?

For the ARV, I really just threw arbitrary numbers for the rehab budget (assuming 20k could remodel the kitchen, flooring, carpet, and paint for the 1 unit). I also assumed that 20k worth of work would at least equate to 20k of value added, with a little on top, but now I know that's not the case. I'll have to research more into residential valuations as you mentioned.

@Michael Belmore Thank you for your input Michael! I didn't know if I should put the analysis of the house hack duration or the fully rented analysis so I just put both. Lol. Thank you for clarifying that up for me! I thought it looked like a good deal as well! The turnkey strategy sounds very appealing, especially since there won't be that much work at the beginning. Thank you again!

First, I want to thank you all for your time and assistance! I've just started analyzing deals within my market and would love to get some extra eyes to check if I'm on the right track. The goal is to use my VA loan for the mortgage. Thank you again!

Property Info

Purchase Price: $160,000. The property is actually listed for $189,900 but after looking at comps, most properties are selling for around $140,000 to $150,000. Would I be able to negotiate even lower?

Property Type: Duplex

Year Built: 1972

Lot Size: 1590 sq ft

Unit Size: 1590 / 2 = 795 sq ft

Rehab Costs: $20,000 + 15% (overrun cost) = $23,000. This figure is a *very* rough estimate due to this being my first investment/rehab. Essentially, one side of the duplex has been completely renovated but listing didn't speculate on the other side so I'm assuming I'll need to redo all the cosmetic work.

After Repair Value: $200,000. This is also a rough/conservative estimate. Seeing as how the purchase price is 160,000 plus another 20,000, I'll just figure the appraisal would at least be $200,000 (I think)

Property Tax: $2,143/yr

Insurance: $798/yr

Property Management: 0$ (self manage)

Maintenance: 10%

CapEx: 10%. Listing mentioned the renovated unit got a new HVAC but i figured I'd be conservative on this as well.

Utilities: $0. Tenants are paying utilities.

Purchase cost: 3%

Vacancy: 5%

Total Operating Expenses: $405

House Hack Analysis

Gross Rent: 850 (/mo)

NOI: $355/unit (in this case only 1 unit since I would be living on the other)

Cash flow: -$326. So this means that I'd be paying approx. $326 every month for this property? It's still a lot lower than my current rent that I'm paying but I probably could find a better deal (I'd still be stoked to only pay $326 a month for my living expenses down from around $1,600).

ROI: 18%

CoC: -14.1%

Summary: Is the goal to essentially break even while house hacking? If so, this might not be a good deal.

Fully Rented Analysis

Gross Rent: $1,700 (/mo)

NOI: $515/unit or $1,030 total monthly

Cash flow: $250 (post tax)

ROI: 45.5%

CoC: 13.4%

Summary: Fully rented, this looks really good!

@Dmitriy Fomichenko Thank you for the recommendations Dmitriy! I'm excited to be here!

@Bryan Blankenship Thank you for the kind words Bryan! 

@Patti Robertson I see. I'll be sure to look her up. Thank you again!

@Nicole Heasley Thank you!