All Forum Posts by: Peter Mckernan

I would be looking at this as a market-dependent change. For example, your market is experiencing vacancies at 5% or 7%.. Just talk to your PM or realtor to dig the data up if you do not know it. If the number is in fact 10% I would not change that number in your calculations.

These numbers on vacancies change quarterly, so your numbers should reflect the changes.  

The other thing that is great for the FHA 203K loan (not sure about the Homestyle loan) is that you can kick the payments out to 6 months of ownership (so close today and make your first payment July 12th 2025) if you are fixing up the home. This money gets added onto the back of the loan kind of like a VA funding fee does. This is great if you are force appreciating the property and then moving in for a year, and after selling or renting it out.

If you are doing high grade laminate that should be good. Since you are not doing super high end finishes as mentioned, doing high end flooring and all other stuff just above builder grade does not warrant tile or full wood flooring. 

I would confirm by seeing the product then going out and checking comparables in that market that have sold. 

For people just starting out to people that have been investing for years.. Going to the events page above and seeing who is hosting meetups along with connecting with people at these meetups is a great way to grow your network of people within a small 25-50 mile radius. The other site that I would be looking at is meetup.com as well, they have a lot of meetups in your area that you can attend to get in front of people doing the stuff you want to be doing. 

For the homes, and or properties that you will use as a primary or a rental property one big thing I look for is infrastructure in the area, extrinsic value (I.e. hospitals in the area, schools, and job market), and the last thing is creature comforts for people (I.e. is a store to get groceries 1 hour away or 2 minutes away). These are things at the high level I want to be looking at for all my real estate purchases. 

Dig into those comps with a realtor doing business in that market. A realtor doing high volume, you don't have to use one you can poll 3-5 agents see what they do to get you the comps and then pick that person to help you. These agents work for free till they close a deal, so make sure you know that going into it. 

But you need to get the comps from the best data out there, the MLS. You need to make sure that you know what finishes you will be putting in, and what comps are selling with those finishes.. Or what finishes the comps in that area are selling with.. For example you are putting in low grade laminate and all other listings are putting in high grade vinyl. You house/property will not sell for as much due to that.. These are key reviews for you and your team to review prior to out price confirmation.

I would get some people out there to quote it.. If you are calling the licensed person off the radio AD a lot of money. If you are calling the licensed guy off the one single van that drives by or was referred to you.. Different pricing. 

An appraiser's word for 7 is functional obsolescence... If the house is funky, it will be funky after you fix it up.. Don't buy those types of homes, they will take a long time and not sell for what you were thinking it would sell for! 

Just think about when you buy the house, could you and your family live here. For example, the stairway is not level and you would have to scrap the house and rebuild to live here. Someone is going to think the same thing unless they can get it for 50% off. 

I do not use these people but I have a lot of contacts that do and they rave about them.

I would reach out to a couple lenders see if you can get some competitive rates and also see about the points too that they are charging.. The other thing that I would look at is private money too you can get it for cheaper and less pricy as they can make their own terms with their money.