All Forum Posts by: Andrew R.

Still looking for contractors in the Norfolk area. Anyone have a lead?

Love BP.  you all rock!

Great blog @Lisa Doud

Is anyone implementing RUBS in Norfolk?  It makes a huge difference analyzing deals for multi-families without separate utilities.  I just want to make sure it is;

A. Possible, and....

B. Won't send tenants running for the hills.

The specific quad we are currently looking at has separate electric, however; water, sewer, and heat/hot water are shared.  Looking to install ductless mini-split heat pumps in each unit then using RUBS for water/sewer/hot water (electric) if unable to sub-meter.  

The unit has an amazing location and we are looking to finish a little above average to ensure we still attract tenants.  Seems around 50% of nearby rentals include utilities.

Thoughts? Any recommendation on 3rd party RUBS companies?

Thanks!

Andy

Correct @Amahl Miller, we will.  I don't transfer until 2019.

Thanks @John Leavelle for the reply and your service as well! 

We have come full circle on our real estate journey. Still hoping for a multi-family but they are in short supply...at least in neighborhoods we are targeting. I feel we could be waiting 10 years to find "the one". There are, however, a plethora of small SFH in great rental areas that need TLC.

203K looks like our new direction...or at least another option.  We came to this conclusion before I read your post....feels like you were reading my mind!  Thank you for taking the time and having such great insight to our situation.  We are looking at putting in an offer on a 1,000ft bungalow near a college campus this week!

Is there anything you wish you did differently or that worked well financially while you were serving?

There are so many strategies out there, and they all seem to work great... for the right person, in the right area, at the right time.  Reading through them, they all make sense!  It is fun to test drive them in my market and with my family/situation to see how the numbers work and gauge our level of risk/sanity.  Just hoping to make the best decisions for my family and our future.

BP continues to amaze me. Thank you again!

Thanks @Andrew Michael , PM sent.

@Tiffany S.  - Definitely have some floor plan issues.  Looking to flip flop a kitchen and bedroom because one of the bedrooms is more like a closet.  Hoping to open the existing small bedroom into an open concept eat-in kitchen/living room (w/ bar top).  Old kitchen will become a bedroom.

The roof is on the verge of full replacement, no access to the attic to inspect trusses.  She may have issues with sub-flooring/floor joists as well (slight bowing).  Unfortunately limited access to crawl space.  Lots of work but small bungalow (1920's) just over 1,000 feet (3/1.5).  As stated above, I'm relatively handy with finish work but would contract out the heavy lifting. 

Do you have someone in mind?

We are looking to BRRR a home in Norfolk with an FHA loan and need some quotes. Anyone have a contractor they love and owe some business to? (we are doing this once in this area before moving where Uncle Sam tells us... will not steal them for long!) Also, any advice on how to interview/ compare contractors? Finally, we have looked at 30+ houses and have a great "feeling" about this one. Please remind me to keep our business sense!! Thanks BP Nation! Andy & Jen

Hello BP! Our first plunge into REI; I have looked into 100+ properties and this is the best I've found so far.

1. Our situation...Military family, 2 years left in the area, looking to flip or rent when we move, tired of renting, lease up in June.  We are looking to buy properties in each area we move to over the next 15 years of service (approximately 5 moves).  The long-term goal is to develop passive income to supplement my pension by either BRRRRing or flipping/pyramiding up to an apartment complex in the area we retire.

2.  The Deal....Preforeclosure 2/1.5, last unit in row of 6 townhouses (built early 1900), 100yds from highway offramp (bit of an eye sore but trees block noise well and can't beat the location (fenced back yard=no noise) in great area walking distance to 2 hospitals, 3 breweries, downtown area, college town but far from the school, big military town.

3. The problems...huge elm trees next to crawl space foundation (concrete foundation, brick structure). No cracking or issues observed, have not had professional inspection yet. Spoke with foundation repair company est. 15k without looking at it (for ballpark #, will have an onsight inspection once an offer is accepted). Tree removal est. 10k. Don't know if that needs to happen, but they are scary big and scary close! Window AC units + old home= expensive Central Air install 10k. (other AC options? I'm all ears). Add another 10k for other repairs/upgrades ( the place is in great shape on the interior). Total est. "Rehab" 45k. If the foundation is O.K.= 25k. Do not know HOA/Co-op fees yet.

4.  Looking at the property today but may have to move fast.  Is this too much to bite off for our first purchase?  Huge curb appeal, amazing rental location, flood zone (typical in this area), AC install, trees, oh my!

 -Listed for 188K

-ARV 250k (what other townhouses sold for)

-Taxes/mo=$180    Insurance/mo=$275    Est. Rent=$1400-1700

-Vacancy/Repairs/Prop Mgt a month= $450/mo.

-Rehab=$45k

-Right now my numbers put our target purchase price around 120k out the door if foundation needs repair and tree removal. I have VA loan or conventional ability and looking at better cash flow vs. no down payment? Any opinions on best financing option? Cash flow VA=$22/mo. Conventional 20%down=$136/mo.

I look forward to your input! Thank you!

Andy

@Jeffrey Hotz

Thanks for the advice and your service.  I will certainly be reaching out once we wrap our heads around these plans a little more.  Re-reading my post it sounds like we are ready to jump off a cliff, we are exploring other paths to reach our goal.  It's like free samples at Ben and Jerry's, you have to try a few before placing your order.

Finding a multifamily that we are willing to live in does not seem likely in this market, therefore we are not scraping, but reassessing our strategy.  Multi-family is plan A but could see us waiting 2 years for this to happen.  As a military family, as you know, we don't have that kind of time.  @Patti Robertson is a rock star, thank you both for the help!

We are new to the game and are trying to find what makes the numbers work....unfortunately they work great in a lot of places we don't want to live. We have found some interesting foreclosures in neighborhoods we like with promising ARV's, however, I am no expert on quoting rehabs. Any good leads on a contractor or foreclosures?

Are there any ways to creatively finance and or partner to execute a foreclosure purchase and BRRRR without completely strapping our bank account? 70k cash + rehab cost + rent while rehabbing is do-able, but is a little more risk than my family is willing to accept on our first deal. We are looking to purchase, rehab (big jobs w/ contractor), move in once livable, finish rehab (we can paint/floor/tile ourselves (Americorps NCCC alumni!)), and either sell or rent in summer 2019 when we transfer. I know there are ways to finance a foreclosure with a conventional loan but have heard and experienced that good deals will always go to someone with cash.

If there are other options that may work in this area for our situation, we are all ears!

@Patti Robertson; Good to hear about pro-rating utilities. Sounded a bit sleezy but did not know if it was the norm. I had no idea MLS had that kind of search power....you can play with numbers for days! We are expanding our search to OV; but really love the walk-ability further south. Thanks again for the great info and warm welcome to the community!

@ Bigger Pockets Nation; We are having trouble finding a property that meets our original plan (duplex/tri/quad to house hack). We have been looking for 3 months now without placing an offer. This waiting game is making us impatient so we are starting to look at SFH's with high potential for sweat equity (foreclosures, ugly, dirty, compartmentalized, but livable within 2 months). The goal would still be to live in the property, refurbish and rent once we move in 2 years. However; we will sell if price is right or have difficulty renting (hope to do our homework and not have this scenario). Are we ditching our original plan too quickly? Or, is it better to be flexible, search for both property types and pick up the best deal that comes along? We are renting now and our lease is up in June. We can do month to month at a premium but it is worth it to avoid the wrong deal.

"Give me six hours to chop down a tree and I will spend the first four sharpening the axe." 

-Abraham Lincoln

The search continues,

-Andy