All Forum Posts by: Andrew Rosenbaum

Hi BP Fam! To anyone who has successfully purchased an out-of-state property that required rehab prior to listing as a STR, how did you do it? What would you recommend as initial steps to qualify a property as a good STR and how do you go about finding trustworthy contractors, cleaning crews, etc. to get it up and running? Thanks in advance!!!

@Alex Soto I take it you're getting a private loan from a friend or family member? 2% is great and I'd be taking advantage of it all day long. I have a few questions though just looking at the numbers. Let me preface this  by saying I'm a newer investor so take what I have to say/ask at face value.  My first question is one that I think Brandon Turner would ask and that's, "What is your crystal clear criteria?" If this meets every part of your criteria, go to the next step. 

Are you forking out your own cash for the down payment, closing costs and rehab?

It looks like you're planning to get around 73% LTV based on your ARV of $165k and your refi loan amount of $115k. If that's the case, you won't be able to pay off your original loan amount of $116,400. Are you just going to fork out the additional $1400 from personal cash reserves?

The cashflow here after you refi is $182. Not too shabby for a SFR but not amazing. Who will be managing it or are you paying that $100 to yourself thus increasing your cashflow?

I certainly wouldn't focus on the short term numbers given the 2% loan since that'll go away rather quickly. You're ultimate decision making numbers will be the post-finance numbers because those will make or break the deal. 

My last question/warning would just be to make sure that your repair estimate and ARV numbers are accurate. With the cashflow only being $182 (possibly $282 if you're paying yourself the management fee which is much more attractive) you'll want to make sure those are accurate.

My overall view on this one is that it's a good first deal and is one that I'd consider to be a base hit and possibly a double if all your numbers end up being accurate, especially if you can collect the $100 management fee yourself. 

Good luck and let me know how it goes!

@JD Martin, I spoke with a neighbor who said both of his cars are there and he never leaves the house so I'm sort of assuming he's inside. I guess there's a chance that he isn't but two neighbors had the same story. They said he leaves once a week to get groceries and that's it. 

@Jim K. thanks for the advice! I'll definitely reach out to the sheriff's office and contact my attorney. If that doesn't work, perhaps I could hire you to make the drive east? haha

I just closed on my first rental property which is a triplex in the Greater Philadelphia area. All three units are occupied with only two units paying rent. The third tenant who is not paying rent also happens to be in the largest unit. Ideally, I'd like to get him out first in order to renovate and re-rent it out to a new tenant. My problem here is that the tenant won't answer the door when I knock and I don't seem to have any luck with a response to my letters/notes either. I didn't receive any keys at closing as it was an off market deal and the seller's estate didn't have or couldn't locate any keys to the property. What should I do? I'm willing to do cash for keys which would be the tenants best option since an eviction will severely damage his ability to get another rental but he won't even respond to me and I have no way of getting into the property, even with proper written notice. 

The other two units will be tougher to evict as they are older tenants and with Covid running rampant, they are a protected people group so that could drag out for quite some time. 

@Philip Cook this is legitimately so helpful! Thanks so much. 

Just got my first deal under contract and it's definitely an interesting one to say the least. It's a triplex set up like a twin with one half of the property being a single unit and the other half being two units. The situation is a bit strange but it's an off market deal and the owner passed away quite awhile back so the estate is finally liquidating the property. The rents are well below market value (I'm talking 50% below) and haven't been raised in 20 years. Both tenants on the one side are paying their rent though and are on time so that's not a huge deal. The single unit half though is a whole other situation. That tenant stopped paying rent when the owner died because nobody came knocking for it. The tenant has been there for roughly two years now. Other than the obvious option of having a conversation and trying to get the tenant to either begin paying or ask them to leave, what rights would I have to get them out and if anyone has experience, how messy can this process get if the tenant is uncooperative? I know I could also do cash for keys which may be my second approach if a normal conversation won't work. Ideally, I'd like to renovate all three units and then BRRRR the property. With current moratoriums on evictions, I believe I'll need to wait till at least the end of the year to evict the two paying tenants but can I evict the non-paying tenant? Would love some input here.

Anybody have any experience with New Western? Good, bad, indifferent? My man, @Alex Uman has been great to deal with so far but I'm curious what others have experienced working with New Western. While I haven't finalized any deals yet, Alex has been awesome to work with and really does a great job of educating and not pressuring for a sale. Anyone here purchased a deal with NW and made money?

@Brian Sigmon it's not that it'll take 6 months, although I'm doing the work myself on nights and weekends since I have a full time job, it's that I think it's smarter to list it in the spring when there's more demand. Is that thinking wrong? I'd certainly sell in the winter but I just don't want it to sit long. I guess since it's my first deal I just want to be as safe as possible. 

@Brian Sigmon, so the deal is in the Philly suburbs. $130k purchase price, $15k rehab because I'm doing it all myself and $200k ARV. Using investor money at 12% APR so assuming a 6 month flip starting in November, I'd have to pay around $9000 in interest. All of my numbers (other than the purchase price) are super conservative so I honestly think that the rehab would be closer to $7500-10k and the ARV could really be like $220k based on comps.

I'm looking to purchase my first flip property in the coming weeks. By the time it's rehabbed and ready to go on market, it'll be about April of 2021. I know each market is different however, given the effects of COVID, what do you think the general overall market will look like in 6 months? Do the behind the scenes foreclosures that have yet to take effect scare you? Should I expect a significantly lower sale price than the current comps or are todays comps reliable? Curious what you all think the next 6 months looks like for sellers.