All Forum Posts by: Will Eagles

Christopher Phillips First thanks for your insight. I evaluated it the same as you and know the area which I believe could be ok. I saw others selling for 200k on the tracks and figured it would be a little less. I also was worried about the as-is and o&u. I will get a gc to walk it with me to see what's up. I'll only move forward if it fits my numbers. Thanks

Kuba F. I agree about the rental however I would still use a HML then refinance and after running all the numbers through the calc it seems a bit risky still. I agree that the rehab doesn't have to be much since it would be rental grade. However with the HML fees and holding while rehabbing and finding a rental could be just as bad.

Kuba F. Thanks for your advice and taking the time to look at this. I guess I will just need to take more time learning and analyzing. I agree on the location, it's an issue. It's been up for a while and keeps dropping. Maybe I'll move on or wait to see if it continues to drop then make an offer under 100k. If you don't mind me asking how do you run your numbers to see if a deal is viable?

Jay Dewberry thanks for the links. The HML I'm talking with soon is based around flips so he may have better insight for me.

Frank Romine

Frank Romine I agree and im learning as much as I can about holding cost and other "hidden" cost. I planned on hard money because of the money I'm starting with isn't much but don't want to let that stop me. What do you mean by stick with home under the Median home ARV?

Jay Dewberry Thanks for your insight the agent is a friend and has set with rehab/investors before. She actually told me today probably 110k would be our number depending on the walk through. I will have a GC walk it with me too to get a better idea of the cost. Do you know of a BP post that covers the contingencies we as investors need to be aware of? As for the HML I will rach back out and ask his analysis. He told me originally that properties at this price usually need 45-80k in rehab and are bout at 50-80k. Not sure I agree but maybe that how they work. I found another HML that I will reach out to in my area. Thanks again Jay for your detailed post. I will keep you informed!

Hi, 

So, i have posted before about a possible deal that I was looking at and to be honest, it turned out to be over my head and after walking the property not worth the risk on a property of its size and cost. I have decided to take a different approach in recent weeks and focus more in the lower price range. With that being said I am struggling to fully understand the analysis portion. I have been talking with a hard money lender and it has made me second guess my analysis. I am going to post the actual property posting in hopes that someone can help me understand what I'm looking at. I have followed many of the calculators and forum posts yet the hard money lender seems to think it's not a viable property. With that being said here is the listing. 

http://www.zillow.com/homes/for_sale/fsba,fsbo_lt/...

I'm not concerned about losing the deal but understanding it is my goal here. 

The breakdown:

144k asking

Agent recommended 120k max offer

Estimated 25k rehab

Comps selling for 175k-210k

Based my goals around the lower end of the comps but would list around 185k

The property is in a big of a strange location but a great town. Am im off base by seeing that there is room to profit on a flip of this property. I understand that its only a 20k profit but on a property of this type that would be fine with me. Am I missing something that a hard money lender would not like about this property? Even my rehab cost I used an estimate with a 20% increase for fudge factor. This would be my first flip. Any advice would be appreciated since I am learning. Thanks everyone.

First Deal, Second Deal, Third Deal Want my first flip, and two BRRR

@Matthew Rollo Thanks for this post. I think it something that a lot of use wonder about if we haven't landed our first flip yet. I look forward to the answers the BP community can provide.