Duplex Valuation Case Study #2

This is a new valuation and analysis case study for a duplex I put under contract recently.  This property has been fully renovated about 2 years ago and currently does not require any rehab, yet I was able to put it under contract at roughly 70% of TODAY’s market value, which means I am buying with an instant equity position of $75k+ as well as pretty strong cash flow.

Be sure to watch the whole video and LEAVE ME A COMMENT BELOW!

 


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Comments (52 comments so far)


  1. Kent

    This is a very thorough lesson on this great software. The teaching knowledge that Daniil has in real estate investing is by far superior to any other that I have seen or heard.


  2. Hil

    Daniil,

    Thank you for this very interesting and detailed review of your process. I appreciate the presentation of the software in action, the real world variables, and your time to share this information for free!!

    I hadn’t explored your software much as yet, but with the on screen example I will now revisit and play around to see if it will work for me.

    Again – thank you.
    Wishing you continued success.


  3. Joe Lane

    Great stuff Daniil. Thank you so much for making this software available to everyone…for FREE.
    As soon as I’m able I will definitely get the upgraded version.

    Again, thank you so much.

    Joe :^ )


  4. Vaughn

    great content as always – quick question. since only one side was rented when you purchased it the DCR is actually a lot lower than calculated here…are you relying on the relationship you have established with the bank for them to lend to you using a fully rented NOI to determine the DCR? For those of us who are just starting out without the established bank relationship, will they typical lend with a sub 1.2 DCR if the investor’s debt-to-income ratio is below a certain level?

    thanks,
    Vaughn


    • Daniil Kleyman

      Vaughn – yep. The bank assumed I’d have this unit rented very quickly and they were right given the location and the fact that it was basically the beginning of rental season.


  5. Mike

    Very helpful thank you


  6. Junaid

    Thanks once again for creating a very informative and easy to follow video. Being a newbie, I found this very helpful. Thanks.


  7. Bill Palmer

    Great program, and great walk-thru! Thanks for what you do.


  8. leonard s

    Excellent presentation. Will take some to digest informtion.


  9. Anthony Garcia

    Just out of curiosity. Is the mortgage loan you secured on this property, a Recourse or a Non-Recourse Loan?


    • Daniil Kleyman

      Anthony – it’s a full recourse loan

  10. Watched this over breakfast! This presentation really put some meat on the bones especially entering projected rentals over the hold period instead of just a percentage. I tell you what helped too was knowing that in the monthly expense cells putting the annual amount /12 saved me time. thanks very much


  11. silvino Camacho

    Hey Mr Daniil,
    I found your class, very interesting and educational at the same time . Well I am a newbie in real state and lost a duplex, so I decide to learn as much as possible about it. Thank you very much I really value your time. Silvino Camacho.


  12. Greg P

    This second Duplex Valuation Data Study #2 is just great. You did an excellent job in walking us through it during your video. It was very straight forward and clear and very easy to understand. Thank you very much for sharing it with all of us customers.


  13. Larry Meincke

    It really looks good and seems fairly simple to put together. I will try this out on a $2m deal I am now doing.. Keep them coming as I think I am getting better at doing the calculations the more I watch the videos. Thanks


  14. Jason Z

    Thanks and keep them coming Daniil. The more we can see the software in action, the better. I just downloaded the 2 premium versions and I’m in the process of doing my own case studies!


    • Daniil Kleyman

      Send me a link to your case studies when you’re done!


  15. James King

    Thanks again Daniil for your tutorials. This is a great follow up to the first tutorial, since it just put the essentials of your thought process and the software into a real project. Excellent presentation.


    • Daniil Kleyman

      Thanks, James! Glad you liked it!


  16. Dennis

    Your software is terrific, but want to know does it provide calculation of assumption of mortgage into a deal. Also, does it work with development deals?


    • Daniil Kleyman

      Dennis – thanks!

      The software assumes a new mortgage (2 diff mortgages). Currently there is no mechanism for entering an “assumption” of mortgage where you already step into a certain point of amortization. You can use this for development deals, but primarily to model how the property will perform and what it’s value will be once it’s built and getting stabilized. For rehab/development projects, check out our other software – Rehab Valuator (http://RehabValuator.com)


  17. Rebecca

    Hi Daniil!
    This program is fantastic for me to learn a great tool to show to my buyers as a new investor. I have to learn a lot more, and this program gives me much faster calculating my numbers to present to my buyers & sellers. Your programs are saving my time & money. I have seen last week a duplex to buy, but it needs to be fixed to rent. It is closer to an university, so it’ll get easier to get tenants. Therefore, I’m using your tools to analysis the numbers to present to my seller & my realtor. I’m still learning to use your tools a better way. Thanks again.
    Rebecca


  18. Leonel

    I am amazed for the stuff I am learning with you. I feel like I am getting ready to do some deals based on what I have learned from your presentations. I have your premium rental Valuator and I can’t wait to do some real numbers and feel secure with my offers. Again thank you so much to share with us your knowledge. Your software is the right tool to manage real estate investment properties. I am just learning more about how to get financing for my first deal as I only have $30Kof my own money for initial investment.
    Thank you again,
    Leone Lopes


  19. Lee

    This was very informative, but I have a question. I was following along with your presentation numbers on my copy of the software and I was getting a little different numbers. I am using the Lite version, but from the presentation it appears that up until you mention the following examples are only available on the full version I should be seeing the same numbers. Again, they were not off by much, but off. Also, under the Analysis Interface tab I have different information showing in the “Holding period, Resale and IRR Assumptions” box. Is this due to using the lite version?


    • Daniil Kleyman

      Hi Lee. The Premium version does look a bit different than the Lite so some of the things you’re seeing are because of that. As far as the math, you should be getting the same numbers that I do in my video if you’re following it exactly!


  20. Steve

    Hi Daniil,

    Great video! Great application and exactly what I was looking for to help me evaluate properties. Do you have any videos on the definitions to the terminology that is not self explanatory? Do you use banks or private investors for your financing? I truly appreciate the time you take to freely share your knowledge and experience.

    Thanks


    • Daniil Kleyman

      Steve – you’re welcome! Glad to share whatever knowledge I have! I don’t have any specific videos about the terminology but most of it is easily researcheable online.

      To answer your other question, I actually use both banks and private lenders for my projects. For short term financing, I use a mix of private money and bank construction loans. For long term I typically get loans from local community banks.


  21. Louise Rosett

    Like the case studies! Could you do one where the purchase of rental property is made with a credit line, interest only for seven years, interest rate1% below prime and comment on the wisdom of using this kind of financing. Thank you


    • Daniil Kleyman

      Louise – I don’t know about a cases study but I can tell you to be very careful with using credit lines as a substitute for permanent financing for deals. Lots of credit lines either reset every single year or can get called every year so you’re using effectively very “short-term”, adjustable rate financing when you’re much better off using fixed rate long-term loans. Be careful.


  22. Roger Ordaz

    Daniil, Kudos on the video! This is an excellent presentation on your software’s capabilities. Can’t wait to put it to work. For me … a great investment both with your tutorials and the software!! Keep up the Great work! Thanks A Mill! Roger Ordaz


    • Daniil Kleyman

      Thanks, Roger!

  23. Hi Daniil,

    Thanks for the great content, you answered my question on which reports to send a potential private lender.


  24. Patrick

    Excellent training again, thanks Daniil.


  25. Luanne Dvorak

    Love the webinar. Will this software work on self storage units and other commercial properties?
    Would like to see a demo on that. I also see a comment about software being user friendly with a Mac. Would like some more info on that as a Mac is my main computer that I use.
    Thanks for your help.


    • Daniil Kleyman

      Hi Luanne. Yes this will work perfectly with self-storage and commercial. If you have MS Excel for 2011, then we can send you the software in a format that will work. But you must have that installed.


  26. Joey Blankenship

    This is very reassuring. Thank you for the peace of mind. I am no longer a sceptic. I was wondering though when I am finished with my first presentation would you mind looking over it to give me any pointers.


  27. eduardo Fernandes

    Hi Daniil:
    I have been watching the vidios on Rental valuator sounds great and appleaing is this down load
    version? or any CD or any instruction manuel comes with it? Will I be able to use the same version when I get a new computor at the end of the year? edd


    • Daniil Kleyman

      Hi Eduardo,

      Glad you’re enjoying the case studies! We don’t usually mail CDs or anything for that matter. All the software is available digitally on our website. That way, when you purchase, you can download and start using it right away! And yes, you can install it on your new computer when you purchase it later this year!


  28. Monika

    Hi Deniil,

    Great software. I really appreciate all the details you put into it.


  29. Kurt S.

    Daniil, I’m rather pleased with the degree of ease that the RentalValuator processes the data. Saves me time, and makes it much easier to “pitch” the deal to the partner. As to the video, very thorough and paced for good comprehension.


  30. Swee

    It is great, this presentation win a thousand words! thank you so much!! God bless always!!!


  31. Brazil Nelson

    Evaluation techniques in ready format makes real estate investing more fun to implement. Thanks for a well thought out presentation to improve the sales process from either side whetehr to buy or sell…

    Greatly appreciated.


  32. wilf

    this is good like to see more ideas how to make better use of software


  33. andrew robinson

    …this video was really good and detailed. i hope the next one is as good


  34. Terry

    Hard to believe the crediablity of the case study when the asking price is $278k, and your calculator say you should pay less than $200k

    The market would not allow or accept that price


    • Daniil Kleyman

      Terry,

      1) If you watch the case study till the end, you’ll actually see that the seller accepted a $205k offer on this property

      2) Asking prices mean nothing. They are often totally off from the actual market and are unrealistic. Pay no attention to them and just bid what you think is right on the property


  35. Rhett

    Thanks,
    I am looking forward to using your software. This will streamline the process for a pencil and calculator guy. Keep up the good work.


  36. Igor

    Hello, Daniel. My name is Igor, I do an analysis of real estate in Russia. I loved your program and I am ready to offer you cooperation, if you will be allocated from the entire program portion of payments for analysis of short-term investments in construction projects for resale on preparedness. I cook very profitable project and is ready to work on your terms.

    Best regards,
    Kulchitsky Igor Vladimirovich
    mob. 8-951-650-91-69


  37. Allen Thomas Cousins

    Daniil Thank you for the very good training .


  38. norbert Waegele

    Thanks again for the video. Software seems intuitive and straight forward. I’ve been looking for properties for a while in my area but I cannot find anything close to the 70% AVR you use. There are a lot of investors around here and properties are going very fast making it a sellers market. Do you have any other recommendations on finding more profitable deals? Thanks


    • Jacob

      Hi Norbert,

      Glad you’re enjoying the program and content. In regards to your question we use Bird Dogs, Wholesalers, Tax Auctions, Pre-Foreclosures, Realtors, and everything in between. I would recommend finding out information about all of those avenues and meeting the people involved in your area. Let them know you’re in the market so when they have properties come up you’re one of the first people they’ll call/email.


  39. Charles Medeiros

    Thank you for your great info and your awesome software. You have hit the nail on the head. These are the sort software apps that make a difference in today’s business structure. You have your finger on the pulse of what’s working out there today and in the future..

    Thank You

    Charles Medeiros