All Forum Posts by: Seth Willis

Hello,

I have come across a completely abandoned homes (abanonded in 2006) so I assume we can all gather up that it'll need a full rehab inside and out. I haven't yet obtained the title but I am working towards it. My question is, how do I go about paying for the rehab? Let's say I get the house for all in $5,000. Im assuming it'll need around 50k-60k in rehab costs. ARV is around 75k+ based on recently sold houses near it. Not to worried about that to be honest. Can I take out a normal FHA loan and put 3.5% down on the 60k loan and rehab it ? Or do a hard money loan and cash out? I have read that they do refinances based off of purchase price correct? Anyone with any experience in abandoned houses and fixing them up please help. Thank you

Here are the numbers

6706 Conley St Houston Texas 

3bed 1bath 870sqft 1 car garage attached.

Purchase price: 30K

Rehab: 15-20k (ish) (haven't seen the inside. The owner said it needs TLC. He has had the same tenant for 10 yrs w no updates.)

$608 in property taxes last year.

Approx. $1000-1400 in insurance. (Crazy high I know.)

So 55k all in (wrapping closing costs into the loan and I plan to wrap the interest only payments as well so I am $0 invested. So maybe $64k)

ARV: $90,000 (based on nearby houses recently sold, and a 5ish minute drive from University of Houston)

Rent comps near by are 900-1050. (Seems to low to me so I may be wrong or not finding them from credible sources)

With the math I've done, I cannot seem to come out if this deal with positive cash flow. I'd like to use the BRRR strategy but idk if my rents are high enough or if I'm not finding the right deals.

hello,

I am a new investor based in the Houston/Galveston county area and I have recently been looking over a dozen or so houses and cannot seem to find any that cash flow, and the ones that do are only by about $20. Is this area just not a good market? Of course people have to have good luck here since their are rent houses I'm just wondering if I'm looking at the wrong houses or if I'm not doing enough when it comes to finding better deals. Does anyone recommend getting my real estate license? Is it that much better to have for MLS ?

so the refi isn't the entire ARV? BC the calculator had me LOSING $250 a month at 90k refi. Thank you so much for the info!!

Hello all,

I plan to invest in my first rental property soon using the BRRR method. I have some newbie questions regarding how it all works.

I buy a property for 30k, rehab expenses are 20k plus roll the closing fees into the loan (about 5k) so a total loan of 55k. The ARV would be approximately $90k-100k. So after the rehab (lets say i have a private lender that wants interest only payments for 6 months then the full payment) I go to refi the property and they give me $90k I turn around and pay off the loan and whatever interest is owed ($63,250 total) so my total equity would be $26,750. Do I get that in cash and available to use on other houses? Would i be able to refi after 6 months? And is this even a good scenario (based off of a possible deal). I want to make sure I fully understand it before I jump in. Thank youyou

:any other info needed or anything I am missing? 

Hello BP,

I have a co workee who is looking to sell her land she owns a few towns away, she haa about an acre of land and a house that is "inhabitable". That being said, the house was abandoned 7 years ago after a bad hurricane. I have never seen the house nor do I know the extent of the damage. But if I'm correct you can get a 1 year construction loan and the refinance it at the end of that year for whatever you owed right? And if so, I heard that construction loans can offer 0% down. I thought it'd be cool to get my first property through a more unusual way. If anything in this article is wrong or if I have been misinformed please do tell. Any advice or anything will help!

hello all,

I have found a decent single family home in the town next to min . Recently for closed on and they are wanting 22k for it. Its completely fenced in, detached garage, roof looks to be in good shape.  Similar houses near it and around it generally sell for around 50k-70k. Rent comps nearby have an average of 600-750. Its in a bit of rough shape, needing some dry wall replacement, paint carpet and etc, I have done what I think is the correct math and it comes out to a steal. The numbers I have ran are relatively good number . I don't know if I am maybe coming at it the wrong angle or if it really can be this nic . I plan to buy and hold and over time I may sell it. Please leave any thoughts or comments below. 

Hello BP,

I am fairly new to RE investing and was wanting to know some of the back end math to it. How much do you pay to remodel, how do you figure if the house is cash flow positive for a buy and hold situation. What are the formulas behind these. I have found multiple "deals" in my area but I'm starting to think I could be doing my math wrong and I want real numbers before I start my real estate future. 

Thank you.