All Forum Posts by: Aditya Maini

Considering buying a property existing tenants that have been living there for years. The owner started off with a lease and would renew it every year, but currently they are not under one. Following the BRRR strategy, I want to rehab the units.

What's the best way to go about this? I understand its a business, would something like giving them a month to move out be satisfactory? Even a month delay to starting rehab would slow me down since I am looking to get HML with hefty interest rates.

Thank you in advance. 

@Jesus Garcia Maybe you can ask wholesaler to go look and give estimate? Best option is to have a contractor look and pay them $100 for their trouble. You'd would probably want to be 80% sure you want this deal before you spend $100 here and there though. You can also ask your wholesaler to take a lot of photos and then get them assessed by a contractor without them actually going to the property as well. Hope it works out. 

That's awesome! great work. I am also looking at a property and considering doing BRRR.

Thank you for sharing your story. The part about people not believing in you or thinking its a gamble definitely hits close to home for me.. Fortunately I have a SO that's supportive, rest of family not so much.. 

Inspiring stuff!

@Dennis M.

That's just one lender I had gotten information from. I am contacting other ones this week, hopefully can find better rates!

@Jason D.

Seems like there are pros and cons but here's the math.. 

HML - 90% downpayment, 13.75% 6 month payback period, interest only

Personal loan - 13.875% no money down, paying interest and principal.

On a 30k rehab loan with 7 year term, I'd pay $555/mo ($355 in principal pay down and $200 in interest). 

30k increase in my HML would result in $343 increase in monthly payment

So the choice is: 

Pay down personal loan, lose more money out of pocket till refinance, smaller DP on HML VS lose less money, larger DP, and having to pay full amount later.

After doing the math, I am leaning towards just doing 1 HML.

@Aaron K. @Jason D.

Thank you both. Wish I could do away with the HML but I will need it. It'll be all about expediting to get the rehab and refinancing done ASAP.

I am considering funding the purchase with HML and then the rehab costs with a personal loan (~13% interest rate, no money down).

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Negative cash flow during the seasoning/rehab period? How is this deal? 

95k purchase, 30k repairs, 194k ARV

Please email the details.. adimaini18@gmail.com

@Travis Winders

Newbie here but why would you choose private money and splitting profits vs HML?