All Forum Posts by: Andrew Zannotti

@David Desousa it really just depends on where you are at in your career with investing. The numbers you are looking at are good. I recommend calling a PM to ask specifics about the area of the property, just because it's price doesn't dictate whether it will be a good rental or not, that will also help you verify your rental rates as Zillow and Rentometer can be way off. Also in regards to your renovations, if you get it under contract you can then get an option period to get a contractor in there to verify your renovation estimates (at least in Texas), also if you have the time you would be shocked how much time stuff you can do yourself by watching a few YouTube videos (minus electrical and plumbing...)

@Nicholas Krogmann as stated below it varies by lender, for my current loan I have 70% ARV, 80% LTV, I had to bring 20% of the LTV to the table, I financed my repairs but it works on a draw schedule, I pay for my renovations out of pocket in 5K increments then call the lender, the come out and verfiy and reimburse me for what I spent.

@Frank Wong not associated to the post but your FB marketing popped up on my timeline, bad *** to see you are knocking it out the park

@Chase Gruening I thought that was a good question, I'd honestly like to know what you can deduct

@Ann Boll Exactly what you described is an option. You can do the initial purchase with hard money (I would specify you are using HM and not all cash, I ran into this issue on a purchase were I didn't specify correctly and almost lost my deal over a hang up with the lender). You can then look to refi into a conventional loan, normally 6 months for a loan that will be eventually sold to Fannie Mae or Freddie Mac, but you can also call around and look for a portfolio lender that doesn't require the 6 month seasoning period

@Angelica M Garzon I can't speak for your numbers or how they specifically will work for the property you are looking at because I don't know which one it is I do know Killeen because I live here. I just bought a duplex here and I'm in the process of doing the rehab now and I am military so I can speak pretty well to what soldiers will and won't be willing to live in if that's your target market. One of my goals in the next couple years is to acquire complex the size of the one you're looking at so if there's anything I can do here to help you, IE: help you get a better understanding of the neighborhood you're looking in, help you find local property management if that's the route you're going, or anything else for that matter just so I can see the processes that you're going through I will be glad to help so I can learn from your experiences.

@Ravi Santwani I honestly don't have a specified number that I look at in terms of NOI. I'm on second investment property and this will be my first BRRRR so I'm honestly not far ahead of you, so I'll be refining my criteria over my next few deals. Right now I specifically look at can I get my entire invested capital back (or most of it) after refi and then at least $100 a door, right now I'm more focused on learning the process and building a team. The property I closed on was listed at 68K, after back and forth and a low as is appraisal we agreed on 51K. My rehab budget is 15 because it's all cosmetic and my after ARV from the hard loan estimated between 100K to 105K. As long as I keep my repairs on path I'll refi at 100K and have all of my initial capital back plus about 30K in equity and about $300 a month in cash flow. This is where I'm currently at in my process. Feel free to let me know if you have any questions and I'll tell you what I'm doing, it may not be necessary the best advise but I'm at least executing what I'm saying.

@Ravi Santwani honestly I think you found a better deal somewhere else, out of your NOI you still need the factor the mortgage if you have one, vacancy rate, maintenance & CAPEX (even when you don't rehab you should start sitting it to the side). I would imagine after factoring for those you're probably not gonna cash flow at all.

@Bhaskar Pusuluri thanks for the reply. I'm specifically hoping to do a cash out refi so I will start calling all the local banks around me. Where do you BRRRR at in NC? I'm starting to build my portfolio but I'm hoping to get into Fayetteville NC eventually due to the lower property taxes.

@Heath Ryans thanks a ton, I'll begin calling around to see what my options are. I'll also roverify my hard money that I've no prepayment penalty. Thanks again.