All Forum Posts by: Alex Heidenreich

Experience is a better teacher than any class, book, or mentor. There are so many reasons why much of the advice on BiggerPockets and elsewhere pushes newcomers to "Just do it!" Once you finally jump in and make your first purchase, the real, hands-on learning begins.

@Linda S.

I would agree with this. You can get in deep water even commenting on kids in the house. You need to know the codes and see if there are limits. Possibly consult with an attorney to know the laws and ensure you are not saying anything that can get you into trouble. On the other side, you also want to ensure you/they are not violating code by having too many people occupy the premise.

 Considering Italy, but open to other countries in Europe and South America as well. 

One side is rented at $650 the other side I'm hoping to get around $750-$950 after rehab. Reno budget is $10k initially, plus probably another $5k if the existing tenant moves out.

I'm happy wholesalers exist and I'm always happy to review their offerings (if applicable to my locale and goals). The last deal I purchased was from a wholesaler and was much easier than having to track it down and find the deal and negotiate it myself. On the flipside, I never trust their ARV numbers. I do my own due diligence and workout my own rehab budget.

Is anyone living in the US, but investing in other countries? What has been your experience? How do you learn about the other countries from a real estate perspective (locales, taxes, PMs)? Are they long-term rentals or vacation rentals?

I'm considering purchasing some vacation rentals potentially out of country, but also curious about long term. Thanks in advance!

Investment Info:

Single-family residence buy & hold investment in Columbus.

Purchase price: $85,000
Cash invested: $97,000

Contributors:
Remington Lyman

My first BRRRR attempt on a vacant property. It appears someone tried to flip it and then gave up. It is an older house with and addition and some updates. I'm getting the updates completed, cleaning it up, and renting it. After the seasoning period, I will get it refinanced.

What made you interested in investing in this type of deal?

I've wanted to attempt the BRRRR strategy and this deal looked like a good way to do so. I'm hoping it will be a gateway for me to do more BRRRR properties as well as some Fix and Flip properties.

How did you find this deal and how did you negotiate it?

Remington Lyman found this as an off-market deal and brought it to me.

How did you finance this deal?

Private lending then hopefully a refinance

How did you add value to the deal?

Mostly cosmetic rehab, replaced furnace, added A/C

What was the outcome?

It is ready to be rented!

Lessons learned? Challenges?

Managing even minor rehabs takes lots of time and attention. There are always things that go wrong; add an extra 10% to your rehab budget estimates.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Agent: Remington Lyman
GC: Mario Siravo

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $123,000
Cash invested: $31,000

Contributors:
Remington Lyman

Buy and Hold that needs some rehab (mostly cosmetic) in a gentrifying area. Traditional financing.

What made you interested in investing in this type of deal?

I've been looking to add additional multi-family units to my portfolio. I like this area that sits between two very nice parks and is seeing lots of investor attention as it gentrifies.

How did you find this deal and how did you negotiate it?

Remington Lyman found it for me and I got it into contract as fast as possible and did have an inspection period on this.

How did you finance this deal?

Traditional financing with 25% down.

How did you add value to the deal?

One side is occupied the other is vacant. Both sides need rehab and updating. I will be updating the vacant side and renting as soon as possible. I will then consider a rehab on the occupied side.

Lessons learned? Challenges?

The appraisal came back with subject to foundation inspection and remediation. We had to have a PE go out and draw up plans and have a GC put beams in. This was a painful process to work with the sellers during a contract period and required multiple contract extensions, but it was eventually completed.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Agent: Remington Lyman
Lender: Chris Wharton
GC: Mario Siravo

 I used to go with a basic inspection, but now that I have a few under my belt, I'm leaning more towards just walking the property with my GC. If there is anything I find that worries me, I can order an inspection or just ask my GC about it. It depends on your level of comfort and the condition of the property. 

If you have the capital to buy a property with traditional financing, it can be a great way to get started. You can often buy a turnkey property, sometimes with tenants already inside. This can help you get over the fear of jumping in and make it easier to work up to the next deal.