💰The MLS Is Dead? We Just Found 3 Potential Deals!

So today on our episode, I want to ask the question, what are the most... important numbers and by the way we are live on youtube as well as zoom and facebook so we we're we're doing our best to kind of keep up with everything but we want to ask you this one question when evaluating a deal if there's one number that you look at what number is it is it the cap rate is it the financing terms is it dscr is it irr what number do you look at first and we're gonna we're gonna talk about that and break that down because we got some opinions and different perspectives but what what number do you you look look at what about you albert when you're looking at and you and i look at similar stuff with slightly different stuff yeah when you're looking at properties what are you looking are you looking more at arv

yeah i don't know if it's necessarily one number

Right.

I think it's

a combination of numbers because I have to look at the big picture, you know, and one number is not going to one number is not going to tell the whole the whole story.

Right.

So for me, I'm looking at.

potential ARV, right? Like what could this thing appraise for once I get it fixed up? All right.

And I start working backwards from there to figure out like what my max allowable offer is.

And if the selling, the list price or what the seller is asking for, if we're like within the ballpark and I mean like, maybe we're about 50k in you know if it's an off-market deal like about about i would say about 20 30k we're close right if it's a property on the mls it probably needs to be a little bit tighter okay at least to start the conversation right okay if i'm close and that was this particular property was our arv we're thinking might come back at about 600 for this fourplex maybe a And so I started working backwards.

I can go get that refinanced at 75%.

Okay, that's going to be my max loan I'm going to be able to go get long-term on this thing.

And then I work backwards from there.

Okay, cool.

What's my rehab budget? My rehab budget is going to be about $250, $260 on this thing.

And we were purchasing it for $185.

So that all fits a little bit under that 75%, right? Now, we're not counting holding costs, like interest, things like that.

Basically, I just gave you like a quick little premise uh a primer on or whatever we call it on how i evaluate these deals real quick yeah but i'm looking at arv arv and what the purchase price is

okay

arv and purchase price and purchase price yeah

and then obviously keep going put your rehab budget in there but right if if the purchase price if there's a big enough gap i'm gonna go look at this thing

you know so are they these are primarily properties that you are potentially going to flip uh what's the chances that you're going to end up holding the on to something like this

so this particular one yeah this one was always well i wouldn't necessarily say always looked at as a as a buy and hold but this one

made more

sense as a buy and hold um just because of the income potential for these four units There's a big house up front and there's three small units in the back.