All Forum Posts by: Jonathan Johnson

@Anish Patel The roof was redone in 2010.

Those are some great questions! @Michael Sjogren I'm hoping to see the property within the next few days. My father in law is a licensed contractor and lives in the area, hopefully he will come as well.

Here are two reports I made with the numbers I have, the repairs are pretty general based on just some comparable costs of getting things installed. The first one is if I buy it and don't do much to it but move in to the fourth apt. The second report is if I remodel the 3rd and 4th floors to be apartments and rent them out at a conservative market rent.

So I've been emailing finally with the agent. First email was an old one, second worked after she got back. 

Hi John,

I apologize for the delay in getting back with you. I have been out of town and I did not realize I would be without internet service. Please find below profit and loss from the owner. Owner is selling due to other interest and does not wish to be invested in real estate.

2014

820 Market St., Parkersburg, WV 26101

Income-$38,841

Expenses

RE Taxes-$4178.64

Insurance-$4740.39

Repairs-$794.24

Trash-$2673.66

Utilities-$1041.58

Water/Sewer-$1062.11

Legal fees-$85

Fire/Police Fees-$1792.01

2015

820 Market St., Parkersburg, WV 26101

Income-$40,052

Expenses

RE Taxes-$4155.72

Insurance-$4218.34

Repairs-$283.06

Trash-$2421.92

Utilities-$1198.60)

Water/Sewer-$1114.74

Legal fees-$85

Fire/Police Fees-$1806.42

Upon your review, please let me know what further questions you have regarding this property.

How do I calculate how much a loan from a private money lender will cost me for doing a BRRR strategy?

There's differing years and rates, do you all use a template contract that all parties have to sign? 

2001: Owner  "Here's a house I can practice my professional copper splattering/hammering/covering."
2013: "Ok, now time to sell for a grand ol profit, if it doesn't sell I'll just add more copper."
2015:
"Agent, I need you to sell this for $1,440,000."
"I think he meant $440,000."
"No, go ahead and add a million plus another 50k."
"What was that? Divide $440 in half before adding 50k? Oh, perhaps lets try 1,250,000?"
2016: Bank "Yeah, that guy is gone. Lets try to get rid of this house over the next 2 years. We'll start at $475 and go down every month until someone buys this project."

I couldn't make it through all those pictures either. Looked like someone sacrificed a copper calf all over the place.

Currently reading the Flipping book by J. Scott, very helpful actually.

Hello!

First time posting in this section. I'm usually into buy/hold or wholesaling but this opportunity came up.

I just moved in with my father-in-law for childcare purposes in a new city. This city is small with only one real good real estate area. Trulia gives it a 9/10 area. We looked at a foreclosure and next door they were building a duplex ranch for older people as the area is thick with older adults wanting to downsize or get out of houses with stairs. The duplex wasn't even half-way built and the contractors there said it's already rented out and gets offers all the time. This area, out of maybe 7 counties, is the only one with a grade 10 school from zillow, it's hot. 

My father-in-law made a suggestion that we partner together to buy land, develope it into a mature neighborhood (50 year olds and older) and set up an HOA, and sell off a dozen or two houses. He would like to partner with me and that we both put in $300k to buyland and build these houses. I know near nothing about development except there are zoning things, contractors, builders, financing, and a time table. My FIL has built his own house before, and is about to get his General Contractor license. The market here will easily gobble up any of these houses, but I just don't know how to price things.

Questions:

1) What categories of things should I figure out pricing for?
2) The city I'm in doesn't have real good builders so we will be looking out of state actually. How does that work?
3) I have a near great credit score, what rates and loans should I seek?
4) What zoning stuff do I need to figure out?
5) How does setting up an HOA work? I've never been in one.
6) Is there a development calculator somewhere? Similar to the BP calculators?
7) What other questions should I be asking? Or other BP members, if you were me, what would you ask?

@Anish Patel What do you mean by trailing 12 numbers for the building?

Thanks for the advice, I'm emailing the listing agent now.

Hello BP! I think I found a good one!

This is a 5 Story appartment complex outside downtown.

First story is commercial businesses leasing out.

Second story are 4 apartments all leased, I haven't seen anything but the hallway but they look very nice.

3rd 4th and 5th are gutted.

The whole thing is going for about $310,000

I'm guessing conservatively that the current monthly income is around $4000. The mortgage would initially be about $1400.

I haven't asked about the listing yet. I don't have a business set up yet. My brain is fried with excitement. What should I ask about this property and what ducks do I need to put in order?

I use cozy.co for tenants paying online, it's very useful and it has some good resources. 

Nothing beats biggerpockets though.