All Forum Posts by: RJ Dixon

@David Robertson

The cabinets are already installed they just need to be finished hence 1,500. The whole seller sent me over an itemized sheet from a GC estimating around 19k with everything beside landscaping. I'm also not flipping this property right away it will be used as a BRRRR. The hvac and central air are new. Roll up roofs in this area I can get between 8-10k. Most of the material needed is already laying around the house. We are not refinishing floors the just need to be finished which I can do myself with the trim around most of the house. I did a little research on the guy who owned the house and it looked like he was in the middle of a remodel and got a new job on the other side of the state. I'm going to get 1 more estimate on Monday just to see. So far I had a GC say 60k one send an itemized sheet for 18,500 whole seller say 20k and my estimates around 30k. Escrow is due Tuesday so I have to make sure.

@Brian Pulaski

Yes 60k is way to much and the numbers won’t work. By no means am I a professional yet but my cost thinking is as follows. Trim 1k roof 10k cabinets 1500 fixtures 7k windows 2k floor and other 5k landscaping 2k. I know it’s hard when you don’t see the property but I’m looking around 30k for the rehab.

@Theresa Harris

Thanks everyone! I’m working on getting someone else into the property to give me an estimate. The seller is a flipper and buy and hold investor as well and seems like he knows what I’m looking for. He said he has a handyman that will send me over an itemized sheet to see if I still want the property. The seller isn’t that pushy and seems like he’s trying to help.

Hello BP world ! I am currently working on my second deal. My first property is cash flowing nice and learned a lot from it but that's a story for another time. I currently have a single family house under contract from a whole seller. The property is a 4/2 2190sqft. I have it for 172k. My original estimates were about 20-25k in rehab. The house is 80% done needs some flooring to be finished , doors and trim. Fixtures in both bathrooms and the kitchen cabinets are in place but need to be finished. I'm pretty sure the roof needs to be replaced as well. The gentleman whole selling the property told me about 20k in rehab. I then had a general contractor walk through the property today and off the top of his head estimated 60k in work. I'm not sure who to believe I emailed a couple of other contractors to do another walkthrough but I'm also pressed for time. I'm not sure who to believe or what to do. This property also looks like it has added square feet to it. How would I make sure it was done legally? My last question is if this contractor was just trying to rip me off and it only need 20-25 rehab is this deal a better BRRRR or flip ? The ARV is 250k conservative and I can rent anywhere from 1800-2000k a month. The average day on market is 38 days. We are approved for conventional lending and but we might have to do work before closing or we are going in with hard money. The rehab will be funded with cash. Sorry for the rookie question. I just want to make sure we come out on top. I'm still learning how to really estimate rehab cost but idk if I believe 60k to finish a house. Thank you for all the help

Hello everybody!! I have just had my offer accepted on a 5unit. I’m in the process of a commercial loan. This is my first commercial property I own a townhouse as well. The rent for this property is 325$, 500$ , 575$ , 700$, 700$. Net 2,800 a month. The property is 3 units in the front 1 being an efficiency. Then a parking lot 5 spaces then a 2 units stacked on each other. Only 2 are being rented out at the time. Looking at the income statement from the previous owner it’s a mess. The area is a small town in Pennsylvania squeeze between 2 bigger city’s. The growth won’t happen unemployment rate is lower then national average and low crime. Town has about 5,000 people. Reaching out to get your thoughts on the property. Next week I’m bring in a water and gas guy to see if I can sub meter. This is what I’ve received from the other realtor. “ In the front house owner pays water, sewer and gas for the water heater. The tenants pay electric and trash. All 3 units have electric heat. In the rear house owner pays sewer all other utilities are payed by tenants back house each unit has a gas hot air furnace I believe water heaters are electric. All units are the same as when you viewed them.” AnythIng will help. THANKS

Hello ! Looking to make a move for my second deal. I have found a Multifamily unit. They are separate one is a 3/1 and a smaller one 1/1 an efficiency 1450 sqft together. It’s foreclosured, the bank Is asking 159,700$. My research Is I think it’s worth 145-140k. Conservative numbers rent 3/1 - 1100 month 1/1 - 800 month. I’m going to try to get it lower but no higher then 145k. I’m also trying to put down 10% if I can. Around 20k down bringing in 8,800 yr. 44% ROI on the year. Will I be able to only put 10% down, says it needs cosmetic repairs, it’s in Florida and doesn’t have central AC , and Idk if the utilities are separated which is big for me. I am currently in the middle of a house hack for my first rental. My first house hack is in my wifes name as she is a traveling nurse. My thinking was to use myself for a 2nd HH but I have Unsteady working from moving place to place. I fly into Florida end of this month for an eye test. I did not talk to my Broker yet. I wanted to put out feelers first. Thank you. This might be me overthinking and not knowing but I do not have a mentor just the books I read and the information on the internet. Cheers ..

@Matthew Roder yea it was a conventional loan with 3% down. So if I go fha primary with my name on the loan it would be ok ? Then I can switch every year with a lIttle gap In between the 2 names for primary residence so I can continue with that 3% down or would it change once I get married ? Thanks for the help just thinking lower cash out of my pocket better ROI.

Hello ! Wanted to ask before I start calling looking for Financing. I currently have a conventional loan for 3% down . I plan on living in it for a year so I can rinse and repeat. In the meantime I’m ready to purchase a multi family unit. My question is can I get 3% down again ? Idk if I can use that multI as a secondary residence and live in that ? I’m also getting married at the end of the year and both of our names are on the deed but only 1 on the mortgage. Did I mess up by putting both names on the deed? Can I pull one of our names off and just do FHA 3 % down ? I can put up to 10% down but rather keep it near bottom. I’m buying into equity and want my monthly payment as low as possible for cash flow. Just wondering thoughts before I call my broker. Thanks cheers

Why 6 months ?

Hello my name is Ralph Dixon, 25. Just stepped into the world of real estate investing. I currently own 1 unit a 4 bed 2.5 bath. My question is I found a multi family unit that needs work done. My estimate and from 2 general contractors that I know needs about 50k of work into it 50k being higher then they think . My hopes and thinking is .. I make a cash offer hopefully get it under 120,000- 110,000 . Getting that cash was going to come from a hard money lender. I know the interest rates are high so my thinking is once the work is done can I get it appraised then take a conventional lone out so the rates are lower. I’m a buy and hold investor at this point. Thanks for the help