All Forum Posts by: Zach Mitchell

@Dell Schlabach, Do you use Quickbooks Online Plus or the desktop Quickbooks Pro version?

If what you have described is all true and accurate then I can't see why there is a hold up. As Rita said, what are occupancy rates like in the area? Even if it's a slow lease up, the existing rents sound like they are enough to keep you afloat for a short time. Is the seller financing interest only for 6 years with a balloon payment, amortized over 20 or 30 years with balloon in 6, amortized over 6 years at 6% so payments are like $1,400/mo., etc.?? That makes a big difference on what your payment is going to be. Overall, I don't see any reason to not move forward with this deal. If you do back out please pass along the sellers info ; ) Good luck!

From the surface this seems like a pretty great deal, almost too good to be true. What about any deferred maintenance? How much work does the property currently need? What is the area like? Why are there so many vacancies if pretty much brand new inside and out? What is the sellers motivation for selling the property without even trying to lease it up first? 

Jason Krick 6 points is expensive. How many different HMLs did you reach out to? I know you're a beginner but they will underwrite the deal the exact same way if it's your first deal or your 20th so that really doesn't play a huge part. Don't bite on the first guy who said he would lend to you. In my area 3 points and about 12-14% is the norm. Keep shopping around.

Realtors don't have access to any special data unless they know of off-market stuff. With all the websites that feed over MLS data almost any consumer has access to the same info as a Realtor, for the most part. Check your local property appraiser site. You can find sales through public records if they were off-market. Lastly, you said it's a multifamily. How many units? Value is derived from three approaches, sales comparison (comps), income, and replacement cost plus land value. Depending on the property type, one or two of the approaches is typically more reliable. If you cannot find anything close you need to expand your search area/criteria or go back further in time and try to make an adjustment for market conditions. If there are truly no comps then your best bet is going to be valuing it on the income approach. You need to calculate NOI (net operating income) and then derive a cap rate from the market, then NOI/cap rate=value. Without knowing how this is done you are better off contacting a local appraiser to help you out.

I bought my first flip at 27. Had been wanting to do it for about 3 years leading up to that point but didn't have the means until I met a private investor who was willing to give me a shot. Just put our 6th under contract last week. It's not easy to get started but there are so many avenues and it's worth all the effort. Don't give up until you reach your goal!

Step one for me would be to research the comps and come up with my own value on the property. How was the deal found? If it was on the MLS I would find out how long it was listed. Anything over a few days and it's not as good of a deal as he describes or it would have been scooped up very quickly by other investors. If it was off market then you need to do some more due diligence on the surrounding area to get yourself comfortable. What's the plan of action? Is it a buy and hold or a flip? If buy and hold you need to determine rental rates and then run all the numbers based on what you determine to be market rents. If a flip, it's a whole different story. Need some more info.

Throw the little house design above the RW on 29 onto the RW on 21 and I think you have a winner!

Ivelisse Matos $10,000 is a very small amount for renovations. Just be careful about your estimations. I've never remodeled a $20,000 home so I'm really not sure what you plan to do but $10k really doesn't go very for and I can only imagine that a house in that price range would need a pretty good amount of work. I'm based in Orlando so feel free to send me an address if you want some advice on the area or immediate values. Good luck!

I agree with almost everything @Dev Horn posted. However, there are no absolutes and while I beg you to not start on the MLS, once you know what you are doing, deals can be found. You are definitely up against a lot of other bids but sometimes you're lucky and happen to be the first to the plate. Definitely don't count on the MLS but there is still some opportunity out there. With that said, there is SO much more opportunity in marketing to sellers.