All Forum Posts by: Ryan Shannon

I appreciate all the advice, the seller and I are sitting down next week to workout all the details. 

@Dan Sargis I have spoken to many banks and two issues are always brought up.

1. The loan would be 100% which goes against their guidelines.

2. The bank likes to be the only lien holder and obviously in 1st position.

I would even do a 90/10/10 if I could find one.

I’m still actively calling banks, so if I find a winner, I’ll let you know.

Thank you so much for the responses.  I’ll talk to him tomorrow about doing just that.

I also considered a lease option for maybe 6 months allowing me time to save up the money as long as we put the  agreed upon price in the agreement 

I just purchased a property from homeowner who told me they have another home that they’re willing to sell me. The seller offered to carry 20% so I can borrow 80% from a bank, but I have called several banks without luck.

 The property needs some work but already has a tenant in place (paying $1,250) who has lived there for years and isn’t planning on going anywhere so can’t do major renovations to increase the value.  I can buy the home for $100,000, “as is” it is worth $125 - $130,000, so it’s a decent long term deal.

Any ideas?

I found a great property for the BRRR strategy. I am just curious if anyone has used a lease option or another form of seller finance to allow you to complete the rehab portion with minimal out-of-pocket cost.. I'm trying to minimize closing costs as much as I can.

@Dylan H. That’s actually really great advice my real estate agent pulled comparables for me and the price ranges from $230,000-$285,000. There were five sold within the last four months. I will re-run the numbers again tomorrow using those figures thanks again

I am a new investor in the Savannah market.  Let me know if there is anything I can do to help out.  I look forward to reading about your first deal.  Good luck.

Hi BP community, I am new to REI, so need a little assistance. I have found what I think could be a great deal on a 4-plex in Georgia, but need help on how to determine the value. Three of the four units are currently rented for: Unit 1: $700, Unit 2: $890, and Unit 3: $890. The fourth unit is not rent ready and would require at least $20,000 to get it there. The sum of the 3 units is $2,480 and after repairs the 4th would rent for $1,300 (median rent of comps in area per rentometer) totaling $3,780. Units 1 and 2 are identical 1 bed and 1 bath, roughly 500 sq/ft each. Units 3 (3/1) and 4 (3/2) have different layouts but the same sq/ft of 1,300.

Unit 1 Current = $700 Potential = $890

Unit 2 Current = $890 Potential = $890

Unit 3 Current = $890 Potential = $1,300

Unit 4 Current = $0    Potential = $1,300; After $20,000 in rehab

Current Rents = $2,480   Potential = $4,380

Potential Gross Rent = $4,380; Monthly NOI = $2,890.60

What is a fair price to offer the owner based on current and potential rents but needing $20,000 in rehab?  I am shooting for a cap rate between 8.75% - 10%.  Just based off the raw numbers without factoring in the rehab, I would offer around $350,000. Should I just take the rehab right off the top and offer $330,000 or is a more complicated calculation required to make it mutually beneficial?   I know making an offer based off potential rent is the wrong answer, but using current rents for units 1-3 and assuming $1,300 for unit 4 still puts my cap rate at 8.33%.  

I appreciate any and all help.  Thank you.

@Joshua Uelmen even with the potential repair costs, do the numbers still work based on initial estimates?

@Marcello Di Gerlando...AO, I love it