All Forum Posts by: Pascual Torres

@Scott Scheel

Thanks

I am having a hard time figuring how to estimate rehab costs for a rental property. Obviously you would replace or repair what isnt working but what about outdated things that are still functional?

For example, this house has some old/outdated kitchen cabinets but are still functional.

It also has some knob and tube wiring and mixed with newer wiring.

Again, this is would be a rental property.

thanks

What does your buying workflow look like?

For example,

1. Look at the property online.

2. Walk through property

3. Rehab estimates

4. CMA

5. Make offer

I would like to know the steps people are taking when purchasing a property.

Thanks

Hello,

we are looking at a house that we mostly like. It was built in 1900. It has some old screw in fuse type electrical panel along with other outdated things but it seems in good shape.

We crunched the numbers and came up with a potential offer.

How does the age of home influence your buying decision?

thanks

It would be lovely if I could just hire someone to do the work instead of me.

I think I need to educate myself more on how to do that.

Thanks guys for your input.

The current owner is real estate investor himself. He got a CMA done pricing the house at about 230k-240k after repair. He got a few bids from some contractors and he thinks it will be about 60k-70k for the rehab. He wanted to match some mismatched roof pitches and add a bigger porch.

property taxes are very cheap since it is not livable.

Out of the theoretical 170k necessary, we would need to finance 140k probably with a HELOC?

So there could potentially be about 60k (230k-170k) of margin minus holding costs.

Found a 2bed 1bath for 99k. It requires full rehab. The only thing good is the framing (it has already been guttted).

I am complete noob to real estate investing as far as real world experience. I bought a house so am familiar with the buying process .I've read some books on real estate investing so am sort of familiar with basics.

I am very handy person. I recently completed a pretty major remodel in my own home.

Did all the work myself.

Should I stay away from this type of investment as first?

Should I look for a cash flowing rental instead?

I would like to hear your thoughts

Thanks

well Im a complete noob so I thought I would stick close to home but I will have to start looking around.

Hello,

In my area it has gotten pretty hard to find a home that you can buy and rent and have some cash flow (using the 20% down). What I mean is prices are high and your rental income wouldn't cover your mortgage. Prices have slowly climbed up pretty high (relatively speaking) .What strategies have you guys used in such market? Does this mean we are at the top of a peak?

Hello

Complete noob wanna be investor hear.

We found a duplex that we are interested in. When doing our analysis we used the advertised rental rates which yielded 9% cap rate. After reviewing documentation from the seller, it looks like the advertised rent rates are very new so there isn't history on payments at these new rates.

How does that change the analysis? Do I keep using these new rent rates for analysis or are they irrelevant ?

Is raisesing rents and putting up for sale and advertising a certain "cap rate" a known sleezy sales move?.... lol

Regardless of the history , I feel like these could rent for more than the advertised rent rates. I confirmed my feeling by asking other tenants around the block what they pay. There is 8 identical buildings on the same block so I feel like it is good comparison.

Thanks