All Forum Posts by: Sammy Patel

So some changes have occurred. We can get the rehab done for $20-$25K and the vacany rate in this area is about 4%.

Thanks for the feedback. The tough part so far is finding any properties that are so heavily discounted in our area. We live in an area with low inventory and high demand. This is a foreclosure and the bank has it listed for $201,000. My realtor says $175,000 may be tough and less will be harder. We are completely new to this process and this would be our first property, but in the 4 months we have been looking for properties less than 70% ARV has been tough.

Based on my calculations cash flow is break even. Mortgage once I refi if rental is about $1400-$1500 for all costs. This only the case because we are trying to do the BRRRR method where when we refi we pull the cash back out that we put in. If we only refi what our hard money lender gave us and kept our money in the property then it would be cash flow positive. Unfortunately we would need to save to get the next property which will take a year or so.

The complex was recently renovated on the exterior. The complex is on a major road in an area that is very populated. Our realtor stated they could find a tenant in a month fi we rented. They estimate no more than one month for vacancy. My guess is the HOA recently renovated the complex. Across the street are million dollar homes. A major hospital is within 2-3 miles. The property has sat for at least 50 days on the banks books. When I run the property thought he flipping calculator it is tight. I only make $15,000 with the numbers I entered. Basiclly, purchase desired at $175,000. $30,000 rehab, ARV $245,000. Monthly payment for interest only hard money loan is $1750. HOA is $250. Taxes are $2500 annual.

So when I ran those numbers through the flipping calculator I get $15,000 profit. Still not sure if I should flip or BRRRR and sell in 3-5 years.

Our plan was to BRRRR and get another property. After 3-5 years sell this property or get multiple properties to monthly cash flow of $10,000.

Here is the deal, would like to know what others think:

2 bedroom 2 bath condo bank owned.

Listed at $201,000. Would like to offer $175,000. Estimates are $30,000 for rehab. Rents are $1600. HOA is $250/month. Taxes are $2500 per year. Insurance is $25/month. 5-10 week rehab. Have hard money lender at 75% of purchase and rehab costs.

ARV is $245,000.

Thanks. I watched the BRRRR video. I'll try to do what Brandon does.

Is there a BRRRR calculator out there?

I am looking at a property in my area that is a rehab that we may want to either flip or take on as a rental. I have tried the bigger pockets calculators and I don't seem to understand how they work.

Can anyone provide advice on the rental one. The property in question is let's say $175,000 purchase price, needs $30K in rehab. I am getting hard money to buy it and plan on then refi-ing in 6 months, how do I use the calculator properly to reflect the hard money and then the refi to analyze the deal? Also once the calculator spits out the results, what number do I look at to determine if it is a good deal or not?

Trying to analyze deal to place offer this week so any comments will be greatly appreciated!

We have used a realtor to help pin point properties to look at. We are looking in the Northern Virginia area. Is $20K too much profit in this area? Are we not going to find properties discounted enough to make that much profit?

My wife and I are trying to rehab and sell properties in the Northern Virginia area. We have just started looking for properties but it seems it is very hard to find any properties that get us the profit we need. I am using the calculator on this site for flipping. I am baking in a profit of $20,000. Yet it seems every property we find and calculate we can't get low enough. Other people are paying full asking price for properties. 

Am I asking for too much profit for this area? What is right profit should i be getting in the northern Virginia market? 

So wanted to provide an end to the story. 

Went to bank to try to refi but they wouldn't but I did end up selling for $269K.

Thanks for advice everyone. I will def listen to my gut more!

Thanks everyone, great advice!