All Forum Posts by: Vernon Brown

@Jeff B.Loan to Value is a new term for me can you explain in english? I Googled it and got, "The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased." 

Wow thank you all for hopping in here to help!

@Maxwell Lee I never even considered changing a multi family into a SFH. That actually helps me to think that way because if the south west side of Atlanta is ever to grown into some of the other higher value sides of town, a single family conversion would definitely need to be made a while down the road. There wouldn't happen to be a rule of thumb for conversion costs would there? (I had to ask!)

@Account Closed I've read a good cash flow and bad cash flow are really dependent on your goals. Whether you are planning to gather a large number of units for long term wealth or house hacking to cover your mortgage until it's paid off. Nevertheless, are there Bad, Fail, Good cash flows to be used as a rule of thumb on Duplexes, Triplexes, and Fourplexes?

Hi there!

I'm new to BP and real estate investing and I plan to purchase my first property (duplex or fourplex) within the next three months. In crunching the numbers on these properties, I have a few that are cash flow positive however I'm not sure if that takes into account the value of the property. How am I sure I am not paying too much. Just because I can clear $300+ hundred doesn't mean that the home is priced right! In addition, there are not many comps in the area (Atlanta) as many duplexes are sprinkled in primarily single family home neighborhoods. 

Any help on valuing these properties is appreciated

Thanks!

That was my next question @Bob Kaufenberg. I would only add, what has tenant turnover looked like since you initially purchased. 

Zac, this opportunity looks pretty good! Were you able to take any pictures inside during the inspection period on the 10th?