All Forum Posts by: Andrew B.

Hey Paul hopefully some experienced investors will weigh in, but I'll give you my two cents in the mean time.  On BP Podcast 311 from 1/3/19 @J Scott indicated he was looking for at least 15% below market value to close his deals in order to hedge against a possible downturn in the Real Estate market many are still bracing for.  With that in terms of the initial offer you would want a clear idea of what the area comps are valued at to determine whether or not you're initial offer is providing you up front equity and is a good deal.  

Since you're looking to buy-and-hold assuming it cash flows well and you're planning to hang onto it for awhile that works in your favor.  The advice I have seen is not to rely too heavily on the 50% rule.  It is a metric that is more for determining whether or not you should put time into analyzing a deal.  Given that you're already to the point of having an offer accepted you're going to want to develop a very clear picture of the actual expenses measured against the income to be more accurate in terms of what you could actually expect for cash flow.

I think it comes down to what the house is currently worth versus comps regardless of what it was listed for since the offer was accepted only $4,000 below their asking price at that time.  Then you'll want to run a few scenarios on what kind of repairs you think it needs and what the after repair value would be once they're done again measured against comps.  You mentioned it may need a new roof, furnace, and water heater along with cosmetic work and that is before the inspection so from an equity/appreciation stand point it seems like the deal is thin.  Since it may need some work right away and/or in the first few years due to its age and neglect that could negatively impact cash flow during that time.

Most people have a tendency to underestimate expenses and overestimate income so having the numbers as solid as possible before due diligence is over and your locked in will be critical.  It's tough to fully analyze the deal not knowing all of the details on the condition of the home and what kind of rehab plan you're considering with the 20k.  Not knowing the actual current value based on comps as well as the after repair value based on comps makes it difficult also.  I'm not veteran though so hopefully someone else can give you another perspective.

@Michael A DeAngelo is right.  Brandon Turner has the best YouTube video's I've come across for running the numbers.  The calculators are also a nice perk when you upgrade to Pro as the pdf's make for a clean presentation when speaking with investor's.  Search "Brandon Turner How to Analyze a Deal" and all of the top results are awesome.

I believe I came across a video on YouTube from Graham Stephan where he talks about executing the BRRRR strategy with traditional financing on the front end. I'll have to see if I can find it.

Everything I read online says Orlando, FL is the place to be

My hobbies are weightlifting, Brazilian Jiu-Jitsu, UFC, reading, and spending time with family.  I used to play the piano, but there isn't much time for that lately with work and real estate commitments.

I do agree with @Anthony Wick though listening to BP podcasts is fun!

@Ky Logue welcome to BiggerPockets!  Texas has a lot of great rental markets I'm sure you will do well with your background.

I'm in the process of getting my real estate license in CT as I begin BRRRR investing in Jacksonville, FL. I'm looking to transition from my current full-time salaried position to becoming an agent full-time ideally within 6 months. I spoke with a great lender in my area yesterday and he confirmed concerns I had about loan eligibility during the transition.

Until I have 2 years of tax returns to show an average income as a real estate agent he stated I'll be ineligible for loans regardless of the amount of assets or cash reserves I have.  I can have a partner complete the refinance in their name then refinance the properties into my name at a later date, but I would like to avoid that if possible.

Does anyone have any ideas on how I could complete a refinance after the properties I acquire during that time are rehabbed and rented?

Thank you for the welcome!  I am definitely looking to connect and will reach out.

I would be interested to see some more opinions on deal availability in Huntsville also.  I am a new OOS investor targeting the Jacksonville, FL market.  In looking at different markets Huntsville was one I continued to see listed as strong with good price to rent ratios.

Hi everyone. I started researching Real Estate about a month ago and It has been consuming all of my free time. I just finished BRRRR and Long Distance Real Estate Investing by David Greene. Those books blew my mind in terms of what is possible with Real Estate. I Day Traded stocks a few years ago with mixed results. The potential in Real Estate with comparably low volatility is incredible.

I am 10 pages into a business plan and looking to purchase my first Single-Family/Small Multi-Family in Jacksonville, FL within the next 3-6 months.  I am excited to join the community, learn, contribute, and network to create some win-win relationships in the future.  My primary focus right now is putting together a good plan and purchasing the first few properties so I can learn by doing in addition to the books, podcasts, webinars, forums, etc.

It's looking like private lenders for the first few deals are set. Finding a solid Realtor, Property Manager, and, Contractor in the Jacksonville area will be a next step. I am looking for ward to networking with everyone and putting the BRRRR strategy to work!