All Forum Posts by: Aaron H.

Yes - you have to find a way to improve the value of the SFR enough to cash out more than you owe on the HELOC. You don't necessarily need to use a HELOC for the next acquisition (though you can, if you have enough equity to do that). The important part is forcing enough appreciation with the rehab to cover your lending cost.

Start with a google search for "San Diego real estate wholesaler" or standard phrases like "we buy houses San Diego" and you'll turn up a bunch. Otherwise, find a local REIA group to attend, check Craigslist in the real estate section (you can spot a wholesaler ad pretty easily), or start calling any bandit signs you see in your area.

Congrats on the progress so far.

What's your overall leverage ratio across the portfolio?

What kind of interest rate are you getting on a "personal loan"?

The books in the BP store are excellent - Brandon's book on Low and No Money Down, Anson's book on Finding and Funding Great Deals, and J. Scott's books would come in handy for you. Also the ABC's of Real Estate Investing by Ken McElroy. For general advice on how to establish an ARV, search the BP blog - there's been some great articles written that step through the process.

ROI depends on the specific property. Run a set of local comps against 2/1 properties, then run them again against 3/1's. If a 3/1 sells for 50K more than a 2/1 with the same sq/ft, that's where the value comes from. You added a BR, now the comps are different, so the appraisal is different, so it's worth more.

Permitting differs a lot depending on the area. Check with your local building department, and/or hire a good GC, they'll be able to tell you what you need to do.

This question gets asked very, very frequently on the forums - run a search and you'll find ample material advocating both approaches.

The bottom line is that with your first investment property it really doesn't matter either way. Find a good cash-flowing deal and a way to fund it. Worry about the LLC stuff later.

Negative cash flow + no appreciation = liability. Even if you're technically breaking even from mortgage paydown or depreciation, it doesn't sound like a good investment.

I don't know anything about the market in Virginia, but if I was looking at something with few reliable comps, I would: 1) expand the geographic area or similarity metric you're looking for comps in to be a bit wider. Something similar enough looking will have sold somewhere in Virginia Beach. 2) Develop a feel for more general valuation metrics like the price/sqft, GRM, etc., 3) Ask a local broker for a price opinion, 4) Just make the offer contingent on appraisal.

I wouldn't rely on the Big Three, no. In some markets, they're reasonably accurate, in others they're way off. To really get accurate comp data, you're going to need MLS access, or partner up with somebody who does. At a minimum, use the Big Three to do your own comp analysis of recent sales, don't just use their estimate numbers. If you're still working on getting the feel for putting comps together yourself, there's a lot of ways to improve - BP webinars, local REIA's, books, etc. There's no real shortcut - getting really good at understanding how to value a property is one of the keys to successful wholesaling. Otherwise, how do you know what to offer the seller?

It's okay to not include ARV numbers if you're not confident in them. My point is that if you're going to include them, it's much better if they're accurate. Otherwise it hurts your credibility with the investors looking at your deals.

First, keep calling lenders, or get a good mortgage broker on your side. Somebody will lend to you. You might be best off with a local commercial portfolio lender that would give you a blanket mortgage on all 4.

Any chance you can add a couple hundred square feet at nominal cost? The easiest way that jumps to mind is if you have a basement, you might be able to put in an egress window for a couple thousand bucks. Or convert a garage. Or...