All Forum Posts by: Adeva Edobor

@Brent Huling ARV is not a concrete value until after the repair. You should always allow the numbers on ARV to be flexible. Also, values can go up or down within the repair period, or you may get a different appraiser when you go to refi or resell. A 50k variance on a $1.5m should not be a deal breaker otherwise, your margins were too slim from the start. Appraisal is not an exact science sometimes, it's based on the appraiser's mood. So don't get bogged down by just over 3% in ARV. If that's the make it or break it factor in your deal, it may not have been a great deal to begin with. Maybe get a second appraisal, see how that goes

@William D. Looks like you have it all already. If it appraises for $150k, call the bank/lender to do a cash out refi. That's the last part. You may be able to get anywhere between $28k and $43k after closing costs. This wouldn't necessarily give you all your cash back but some; maybe enough to go do another deal

Hi @Alana Reynolds There are two ways I would look at this if I were in your situation;

The first and most straight forward would be, if I had any concerns about long distance landlording, to sell, use some of the proceeds as a down-payment on a duplex and use a conventional loan to start the process of my buy and hold strategy in the new location. (I don't like the funding fee associated with the VA loan unless you have non)

The second, since there's the likelihood of being stationed somewhere else in the future, I may as well get comfy with long distance landlording. I would take a HELOC on the property and use that as a down-payment in the new city (I may not have enough DTI to get a duplex, but it'd be the same since I'd have 2 properties anyway) I will still use a conventional loan if I am subject to VA funding fees. In 2025, once I've owned the NJ property for 5years and lived in it for 2 out of the 5, I will revisit the option of selling again since I would be able to avoid the taxes on the gains and maybe buy something closer to me (ask your tax person)

In regards to the conventional loan, if the down-payment is less than 20%, I'll be fine with PMI as long as I have confirmation preferably in writing that it will be taken off once I can prove 80% LTV (There may be some math to do to determine if the VA funding fee is a better value than PMI)

Thanks @Jessica A Keeney I'll check him out

Hi BP fam,

I am considering using a PM to rent out a condo in Anaheim at least for the first year. I was wondering if anyone has any experience with Doorstead. If you have, how was it? I've had two consultation calls with them and so far, the reps seem knowledgeable and their system seems streamlined and organized. However, some of their reviews online are not flattering. Mostly talking about the vendors they choose; but since they are tech based, I assume everyone they use is a third party contractor. They have two options, 6% monthly fee and 50% 1st month for tenant placement or 8% monthly with guaranteed rents. they don't offer option 2 in my area. But option one doesn't sound too bad. I'll still cash flow if everything works out okay. I've never self managed which is why I want them to help with the initial process.

Don't start with courses until you have exhausted everything that's free. Go to the University of YouTube. Watch the bigger pockets real estate show. Start from the old ones when Brandon and Josh were on and work your way forward. Listen to Meet Kevin and Graham Stephan's old videos when they started. I recommend starting with the old stuff because they weren't sounding as sophisticated as they are now (That helps when you are new)

Then get your income, credit and budget in order. If you like reading, get books, if you don't, audio books. However you do it, BOOKS!

Rich dad poor dad-Robert Kiyosaki (They say it's not a real estate book but I've read it multiple times and all I think about after is real estate)

The richest man in Babylon George Clason (The simplest finance book. The language is old, like biblical old but the information is basic and easy to follow. Audio versions are all over YouTube)

Set for Life-Scott Trench (I haven't read it, but everyone on the podcast says it's great)

That automatic millionaire-David Bach (Another easy to understand finance book with practical steps)

Can't predict the future but with interest rates running up as they are, and the feds saying they want to catch up to inflation, I'd say do it now. 

In my experience, Zillow is close on accuracy in very high turnover markets. I think they use an algorithm of some sort so the more data available, the more accurate the numbers. I'm pretty sure some appraisers cross reference Zillow, Trulia and a bunch of other sites to make their decisions. Especially during covid, a lot of desktop appraisals were used to make decisions. Where did those numbers come from?

@Breahna Downer Please Please Please. I am speaking from experience, don't inherit that tenant. Any sign, no matter how subtle of a red flag before you purchase, treat as a very red flag. The tenant, because he owned the property in the past will have a sense of entitlement. The fact that he sold it because of distress, will leave him carrying resentment. Don't trust any rent schedule you get from people who know each other. He couldn't get him to sign a lease, d'you think he could get him to pay on time? If he was late or not paying, do you think he would have been able to evict him?

Just ask to have the unit vacant before closing. Inspect it before you close and if there's any damage done before you take control, you can ask for concessions or back out of the deal.

But under no circumstance do you inherit the tenant. don't even try to get them to sign a lease. Sorry but the house is being sold.

@Josh C. I was thinking the same; it was so long I can't believe I read the whole thing. It's because it was a cool story and it was well written. Also, we were waiting for the part where the tenant was a disaster. Or maybe we're just nosey lol