All Forum Posts by: Andres Ayala

Just ran into this thread, sad I missed it. Will you be holding any of these anytime soon? Interested in Duplex Rehab to hopefully owner occupy and do as much of the rehab as I can myself.

I am struggling pulling the trigger on deals. I keep running the numbers for a BRRR property and they seem to work, but since this is my first deal I become a bit hesitant on committing on a deal. I am struggling mostly with the Rehab work, I am getting deals from a wholesaler and the properties need a significant amount of work. Because I am not 100% familiar with the rehab process from start to finish and I work a full time job I feel as if I won't be able to fully control the outcome of the property. I am looking at rehabs around 40k-60k and walking a property that needs this much work just makes doubt creep in of how to make it work after. If I could get any advice on how to get more familiar with the scope of work needed for rehabs this size or what the procedure was, maybe shadowing somebody I would feel more comfortable in moving forward. I also had a vision of what I wanted to do but not sure how to present that to any contractors for accurate bids. Does anyone have any reccomendations on how to learn this process either people or materials I can research? I am in Austin, TX which the market here is going up like crazy.

I also wanted to ask if anyone has had trouble finding an ARV for a property in an appreciating market? Where I was looking at the properties were selling for 280-310k for 1,500+ SF 3BD 2B. They were not flips at all or renovated to an extent, most of these were in very nice condition but no full guts in this neighborhood. How can I estimate the ARV on a fully remodeled property if there are none to compare the updated house with?

Thanks in advance!

I am struggling pulling the trigger on deals. I keep running the numbers for a BRRR property and they seem to work, but since this is my first deal I become a bit hesitant on committing on a deal. I am struggling mostly with the Rehab work, I am getting deals from a wholesaler and the properties need a significant amount of work. Because I am not 100% familiar with the rehab process from start to finish and I work a full time job I feel as if I won't be able to fully control the outcome of the property. I am looking at rehabs around 40k-60k and walking a property that needs this much work just makes doubt creep in of how to make it work after. If I could get any advice on how to get more familiar with the scope of work needed for rehabs this size or what the procedure was, maybe shadowing somebody I would feel more comfortable in moving forward. I also had a vision of what I wanted to do but not sure how to present that to any contractors for accurate bids. Does anyone have any reccomendations on how to learn this process either people or materials I can research? I am in Austin, TX which the market here is going up like crazy.

I also wanted to ask if anyone has had trouble finding an ARV for a property in an appreciating market? Where I was looking at the properties were selling for 280-310k for 1,500+ SF 3BD 2B. They were not flips at all or renovated to an extent, most of these were in very nice condition but no full guts in this neighborhood. How can I estimate the ARV on a fully remodeled property if there are none to compare the updated house with?

Thanks in advance!

@Kris Wong @Bryan Noth I also meant to ask, I will be using a HML for this rehab of the duplex. As far as the ARV or how much the property goes up in value, I am seeing a couple of rehabbed properties for sale for around 349,000 | 330,000 | I am assuming an ARV of $325,000 ( or $230/SF) would this be even close to what I would have in the refinance portion of the loan? I plan on doing some landscaping work, as kris mentioned interior cosmetic upgrades, some patio work and appliances.

@Kris Wong Awesome! That's what I am hoping to do with this property if I get lucky! Thank you for the valuable information I really appreciate it! 

That's good to hear, I had the same thoughts that it was transitioning but wanted to see other peoples opinions. Congrats on the quad plexes, they sound like they are a sound investment! With all the new developments/construction I have a deal in front of me for a duplex that I am considering investing in. Can I ask you what your rent is for a 2 bed 1 bath if you have one of those in the Quad? Also, some of these houses are in rough shape, how extensive did you take your rehab to? the studs or did you paint the exterior of the properties and did a full gut on the inside? 

This would be my first time investing in real estate and am very excited to get the ball rolling! I would like to ask anyone for their advice/experience investing in the St. Johns area. I drove that area about two years ago and did not feel very safe while doing so. I am noticing A LOT of new construction homes in the area and I am guessing that there is some Gentrification happening in that area. Anyone in Austin that knows or is aware on the appreciation or gentrification of that area? Should I consider investing in this area since it is very close to Crestview/Highland area which has just about exploded in the past couple of years, I believe this area is changing and was going to ask for some advice. If anyone has any please let me know, any help is greatly appreciated! 

Any investors/realestate agents have comments on investing in the North Oaks/Walnut Ridge or Pflugerville area? I have driven by North Oaks/Walnut Ridge and they look in pretty rough shape, looks also like a rough neighborhood (a lot of parked cars outside the houses). There are some Duplexes that could potentially offer value but doing a BRRR on a duplex in that neighborhood is just asking for trouble. Any thoughts?

Also, Pflugerville has plans to have a new domain waaaay in the future. I am trying to see if i can househack/BRRR a SFR there but if not, I could just have it rented and I could continue to rent at an apartment complex. Any thoughts on the Pflugerville area rising much in value over the next years? I feel like some of the homes built there that look like HOA's will never rise in value.

I am struggling to input the Hard money lender portion into the BP calculator. I plan on having the HM loan for 3 months. I am getting confused with the following

1.when putting down the down payment option for the purchase loan

2.interest only option

3.amortized over how many years? ( I am guessing one year but only need to hold the loan for 3 months)

Could someone please help me understand how to work this calculator with the HML? Thanks in advance hope that made sense.

@Corby Goade I agree. I guess the way I see it is I still need a place to live if my house hack doesn't work. What would be a good alternative to me owning a BRRR if I am not house hacking?