All Forum Posts by: Alex Huang

From the moment that I started looking into RE, posting on BP, etc til getting an offer accepted -- ~2.5 weeks.

I learn far better through experience than books, blogs, and podcasts. 

Thanks.

My initial plan was to try and get to 4-5 properties, and get them rented out, and then approach the Refi route. That seems like it probably is the best strategy still.

I understand the over-arching principles behind the BRRRR strategy, but I have some questions that i was hoping some experts could answer below.

I've purchased my first property in cash. I expect to be all-in at right around $55-$60k on the property and for the appraised value to be in the neighborhood of $85k-$90k.

Would the proper steps be:

1. Rent out the property. Get a tenant in there.

2. Once a tenant is in, go and get refinancing.

3. Have the house re-appraised (how do you do this, do you just order an appraisal?), and expect to get between 70-80% of the appraised value in cash out of the house.

4. Use that capital to find a new property

Am I missing anything here?

It's worked for me, but I like striking up conversations with people and feel comfortable doing it. I have some other friends who would rather die than deal with that!

At the end of the day, I'm a believer that more is better than less - especially when it comes to something as pivotal to your success as contractors. I'd also try to connect with some local investors and see if they are willing to share their contacts. A lot of contractors are backlogged with projects, so it's nice to have a few back-ups.

Best of luck!

A friend suggested this as a way to 'stand-out' among other properties. It is a pretty creative tactic and I would love to know if any one else has tried it (or have alternative little property perks).

My friend owns a handful of SFH in A-areas. To save on his own expenses, he paints all of his floor/ceiling white/light gray. When he advertises his properties, he points out that tenants can paint the walls any color they wish (not unusual for rentals), AND he'll pay for the paint.

I thought that was such a clever way to differentiate from all of the other available rentals. Thoughts from other landlords?

Not sure if it is applicable to the question here but some people who use the HUD as a resource for finding properties have written about some tips and tricks to winning bids. IIRC, a key piece was that they were able to bid a higher NET offer due to their circumstances and, at the end of the day, that's the only number the banks are looking at.

In my opinion, there is never a wrong time to locate and network with contractors. You are absolutely right that they are a CRITICAL piece to a smooth and successful investment. I've literally loitered around the Home Depot contractor's desk a few times and just approached people and asked for their contact info. I'd ask for some pictures of their work and use that initial interaction as a filter. 

I'd save the ones I liked and then message all of them when I had a project ready for bid. 

JScott has a blog post at BP that includes a file that goes through a basic ARV exercise. It's a great starting point and you can adjust the numbers accordingly to your market (eg trying to price out what an extra bathroom is worth in your area, or a garage, or patio, etc).

Sorry, I can't find it right now.

Congrats. As a person who is very intimidated by the process of auctions, it is great to hear a detailed breakdown of the process.

Nevertheless, the whole idea of buying a house that still has occupants is still so bizarre to me. I imagine your experience with such civil occupants is a rare outcome.

I've battled with this exact same thought as well. 

The rates on a HELOC are so low and the structure is so convenient that it almost seems like a no-brainer to just hang on to the property. The only circumstance that would mandate selling to me would be if the house is sitting vacant and holding costs become a problem. Otherwise, some positive cashflow, the freedom to extract some capital via HELOC if an opportunity appeares, and the potential of appreciation make holding on to the property far more appealing.