All Forum Posts by: Yanic B.

@Jaysen Medhurst, thanks so much for the reminder of the 1% rule. Such a basic concept that I easily overlooked.

I'm crunching the numbers on this deal received from one of my realtors. I've really lowered the purchase price and even raised the rent to slightly above market but still not able to make the deal work. If only flooring, paint, landscaping, and general cleaning/make ready is what is needed (so says the realtor), I've allocated $5K in repair expenses yet still cannot see any cashflow or ROI. Anyone have any suggestions on what I could be missing on this one? As always, thanks for all your help and input. This site has been invaluable for the posts members contribute!

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*This link comes directly from our calculators, based on information input by the member who posted.

Thanks so much @AnsonYoung!

Does anyone know where or how to find the previous deal analyses I've done on properties? It's been said that BP saves these on the users profile but I haven't been able to find them. Thanks in advance for the help!

@Joe P.     THANK YOU!!!!! :)

I've been getting tons of emailed leads from a wholesaler I met 2 wks ago and I've been trying to crunch numbers on the deals they give me (this is just one of the many) but the numbers never seem to work out. Although I'm new to this, I was hoping that it wasn't just my inability to analyze the numbers. Thank you SO SO much for the candid input. It's a tremendous help in viewing things realistically.

Another question... you state: 

• You're going to put 10k in and that will increase your ARV 130k? Yeah...I don't know what planet you live on, but on Earth, it doesn't work that way.

The ARV (based on comps) is 255k, so I'm confused by your statement here. I actually estimated 20k for repairs but then lowered it (again, to see if I could get it to a positive cashflow). Can you provide an example of how this would really work? (Sincerely, I really appreciate you for the feedback!)

So this is my first time using these calculators. Several times I've changed the purchase price, repair estimated costs, as well as financing details (interest only payment vs. not, amortization over 30 years vs. 1year for conventional vs. hard money, etc.) and the ROI still hasn't went positive. Any other factors here that I could be ignoring which would make this deal a positive cashflow property? Thanks for all the input and help.

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*This link comes directly from our calculators, based on information input by the member who posted.

Thanks for the mention @Daniel Haberkost

I've been going to meetups but focused on finding contractors for my rehab deals. Never thought to look for potential partners (especially with all the promotion given to hard money lenders---even though hard money isn't the best for rental deals from what I've found). I will have to reach out to some of my recently gathered contacts for potential partner inquiries. 

So I have a rental property which is under a conventional loan but yet it cashflows with the current tenant. I'm wanting to venture into rehabbing/flipping but also have been finding some good deals on true rental properties (already occupied with tenants and set to cash flow from day 1 with no repairs needed). The obstacle I'm encountering is that the [conventional] lenders I'm going through keep demanding 20% down (which I don't have---the money I have is being saved for use on rehab deals). I'm getting frustrated because of the "no money down" concept appearing to not be a realistic thing in my attempts to fund these rental deals. What am I missing here? Thanks in advance for everyone's input and suggestions. 

@MatthewAnderson 
Everyone posting has made some really great points. As someone who rents to a section 8 tenant, I must say that raising the rent incrementally would be more "fitting" for that kind of tenant. And, as others have mentioned, keeping in mind what the comps are (in other words, how much under market you are) is always a prerequisite to proper rental "budget" analysis. Someone posted a very great mention about staying slightly under comps (as this helps keep up the good relationship with the tenant---because they feel they are getting a good deal) and it also gives you room to go up if you need to (for reasons outside of regular rental increases that sustain with inflationary demands).

All else aside, given the amount of rent you could be charging it may be an idea to sit down and develop a long-term (2-4 year) budgetary plan for the unit/complex so that you can 1)gradually increase rents to a more uniform standard--as one member stated, "if they are all comparable units, there shouldn't be a drastic difference in the rent amounts" 2)eventually get all the units with equivalent or comparable upgrades (to keep things even with the neighborhood comps based on ammenities), and 3)ease your mind about the financial plan and trajectory of your complex (so you can just follow a predetermined plan and adjust when needed as time progresses). Your original post/inquiry proves your analysis skills are thorough so you'll figure out what works, no doubt.