All Forum Posts by: Raymond B.

A lot of investors use 70% of the ARV after all repairs, holding costs, insurance, etc.
Example:
220K ARV
Closing Cost: - $10,000
Holding Cost: - $4,000
Misc. Expenses: - $3,000
Repair Cost: - $23,000

Total of above is 40K.

220K ARV, 70% is 154K, minus the 40K, purchase price should be 114K, or less.

Ray in Ct

Anthony, here is the link to your question:
http://www.biggerpockets.com/forums/52/topics/18371-help-me-understand-this-deal-and-5-2-rule

Scroll down, and you will see a post by Jon Holdman.

Ray in Ct.

Main Entry: gen·tri·fi·ca·tion
Pronunciation: \ËŒjen-trÉ™-fÉ™-ˈkÄ-shÉ™n\
Function: noun

: the process of renewal and rebuilding accompanying the influx of middle-class or affluent people into deteriorating areas that often displaces poorer residents

Ray in Ct.

6 plex. 3 floors.

Ray in Ct.

Many years ago, I owned a 6 family.
Fire started in the apartment on the 3rd floor.
Nobody was injured. Thank goodness!
After the firefighters put out the fire, the city condemned the house. I had it torn down. The insurance covered the balance due on the mortgage, and the cost of the demolition.

Ray in Ct.

Have you considered placing an ad on Craigslist, or any of the other free sites?

Raymond

A house built in 1963 shouldn't have any "Chinese Drywall" in it.
If the house was damaged in the Hurricane in 2005, and needed drywall replacement, it could have some of that "Chinese Drywall."

Raymond

How much are the HOA fees?

I didn't see it in your figures.

Raymond

An associate of mine, makes sure, that all of his leases start and end, in June or July.

If for some reason, he gets an empty apt., in the winter months, he writes a lease that will expire in June or July, and then if the tenant wants to stay, he makes it a one year lease.

Ray in Ct.

Thank you for the link to that map.
Very interesting.

Ray in Ct.