All Forum Posts by: Robert Arquilla

@Kristin Cooper

This seems like a lot of money for such a small return. What is a typical stay for one of your potential tenants? What’s the vacancy rate for this?

I would just be worried spending so much money for such a little return.

@Ana Klein

If you’re not living there why is you’re down payment so low?

Where did you come up with a 4% interest rate? For an investment property it seems like the average is in the low 5s.

Just some things to think about.

@Ana Klein

Couple questions:

Are you living in this property?

Why didn’t you include closing costs?

Cash flow seems slim to me for such a big purchase.

@Boe Dillard

When we got a rough budget number when we were thinking about building it included the garage. The sf number including everything with the house figuring on standard features. Best thing to do is talk to a home builder who does this everyday and see what they think. Or if you want a solid number you will have to pay and architect to draft up some plans for what you want then send those out for bids.

@Parker Eberhard

Ya it was more of a figure of speech

@Boe Dillard

Hard to say exactly but 150-200 should get you a ballpark number, fo my location at least. Obviously if you want high end finishes or a 13 car garage you’ll need to increase the cost per sf. If you talk to contractors specifically home builders they can give you a better idea.

@Richie Thomas

Thanks for the input. The chimney leak does not seem bad to me and looks like it’s an easy fix. That’s causing the moisture on the first floor. Also the mortar repair is also not a big deal just a couple areas where I will need to knock some old out and patch in new. But you are correct I did not include cash in for the initial repairs.

Rental rate and ARV comes from knowing the area and talking to other investors and realtors. ARV of 85k or so is with about 5-10k of work. Something I would do over time.

I'm putting 15% down for down payment and the other number such as PMI and Interest rate came from my lender.

I probably should have included property management but I will be doing that myself for awhile and will probably not touch the cash flow for a year or so anyway to save for another down payment or to turn the bonus room into another bedroom to increase the rent.

Again thanks for your input gives me some things to think about.

Let me know if you want my lenders info.

@Matthew Duch

Basically once you walk upstairs there’s an open space(sitting area now) that I would turn into a bedroom. You have to walk through the open space to the existing bedroom. So once renovated you would need to walk through the new bedroom, open the existing bedroom door to go into the existing bedroom.

@Robert Arquilla

Just some more info:

The main reason for the post is about possibly turning the bonus room on the second floor into a bedroom and adding a bathroom to change the house from a 2/1 to a 3/2. The only issue (or possible issue) is you would have to walk through this new room to get to the other bedroom.

Is this a problem ?

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