I’m buying a piece of land that has had a house on it before (it burned down) and currently has an old mobile home, on the other side of the property, that I’ll have to removeFor those who’ve purchased land, what would you do before close?

I will give you the numbers then tell you mu strategy idea. house purchased for 415,000 in august of 2020 at a sub 4% rate but I treat it as 4% because I am not 100% sure what the rate is (I am getting into contact with realtor soon don't worry)The house could rent for 2,500 per month at minimum and I think I could get 2600-2900 but not 100% sure.It is now on the market for 600, 000 but I think I could get it to 575 since it has been up for a couple months.well 575,000 at a 7% APR is way higher than the rent so I was thinking I could do a seller financed route.

Depreciation may be calculated different for assets purchased outside of the united states.2.

Purchase price: $169,000 SF new construction What made you interested in investing in this type of deal?

Yeah I've seen LTC being only 60 or 70% of the purchase price.

I talk to developers all over the us and most of what you have would pass my initial screening to move forward. then it would go to sponsor experience, liquidity, construction experience, site location and site reports, entitlements, construction partners, etc to clear all the conditions. make sure you have a plan to purchase all the fixtures we passed on that. not sure about hotel financing of beds, desks, etc 

Most PM companies have a requirement where the tenants income needs to be 3x the rent per month.There’s more to it than that - but it’s a lot to type out.It’s a popular strategy for those looking to get into STR/MTR and can’t afford or can’t qualify to purchase a home themselves. 

I will need to finance most of the purchase, but if my numbers are correct, it would still generate cash flow even with 100% financing.

Purchase price: $1,500,000 looking into property purchase, will purchase within 3-6 months

Hey Julian, As others mentioned, DSCR loans will be underwritten based off of the appraised value or cost basis (purchase price + documented rehabs) depending on seasoning period when you are looking to refi.