All Forum Posts by: Adam Drummond

thanks, for the reply.  that's a great point that i did not consider.  borrowing money is cheaper now than it will prob be in the future.  the house will rent for about $900 /month.  i have other savings set aside, but i go back and forth on how much equity i should pull out of the house when i refi.  i definately want it to cash flow at all times.

almost finished with my first brrr property.  i own it outright, and when it's finished it will appraise at close to $135-150k.   would you take out the max amount when refinancing, or play it more safe??  my initial thought is to only cash out 50-60k to keep my loan to a minimum, and hopefully pay it off quicker.  however, if i cash out more money, then i'd have more cash to immediately invest.  thoughts on one way vs the other??  thanks for the input.

adam

I bought this property off market about 10 months ago.  It is an older gentrifying neighborhood near downtown greenville.  Even though my neighborhood is still a work in progress... people are paying about $200 sqft for a remodeled house there.  Greenville is a crazy market, and has been for a minute.  Investors are scooping up most any thing they can get there hands on.  It's hard to find anything that's on the market as an investor.  I always look off market.  How long will it last???  who knows!     

adam

@James Adair

thanks, you're prob right.  although, engineered flooring has plywood glued together with grain running in different directions under the finish layer.  You can install it in basements below grade, etc, due to it's minimal expansion and contraction (in comparison to other wood).  

thanks man.

Jim,   How much are you investing to expect 500-850 per door net each month?  My project that i have right now should be 350-400 net after expenses monthly.  The total project including purchase price will be about 50k, and then i will refinance and pull some equity out (brrr method).  

thanks,

adam

@Alan Pederson

i have never heard of someone using vinyl flooring for fencing.  that sounds like a terrible idea lol.  thanks for your reply.  

remodeling an older house, and it has a small covered front porch.  i was going to cover it with vinyl soffit, but i saw some other houses near me that had a stained tongue and groove  porch ceiling .  has anyone ever put engineered (prefinished) wood floors on a ceiling before?  i have left over flooring in my garage, and they are engineered hardwood not laminate.  i thought it would be a cool look, but obviously, moisture could be an issue.  what do you think??  

adam

i look on zillow for rental comps all of the time.  it might even tell you on zillow how many days that it was listed for rent.  another thing is contacting a local property management company and asking them if there are renters looking in the area you're concerned about.  i'm not exactly sure what you mean by "difficult to rent" though.  hope this helps.

adam

@Chris Trefry

it really depends on several factors.  for me personally, price of the property, how much money i will have to spend on repairs up front, and projected appreciation or equity.  i have one that i'm finishing up right now, and i will have about 50k total invested, and it will cash flow about $400 /month after all expenses are considered.   i have read multiple people's posts on bp, and some only require $100 per door.  for me i use my own personal funds for investing.  i look for higher returns on mine than most people because for me to tie up money... i need to make sure it's worth it.  just my thoughts.  

adam

@Anthony Gayden

man, have we met before??  you basicallyl described my real estate investing perfectly.  the only difference for me is...  i am strict on screening tenants, and i am using the brrr method.  everything else that you posted is very spot on.   can i ask you, why did you originally look down on "mom and pop" investors.  i currently own 3 investment properties total, but i hope to grow that number much higher in the next few years, if possible. 

adam