All Forum Posts by: Anna Stratton

thanks everyone!  

hello all,

I had planned to BRRR a property for our first investment.

After a few months of searching and several "no contract", i finally have a contract on a house.  i am asking for help to analyze this and how to fund the deal

neighborhood- C+/B-

listed $100K,  buying for $43K

the house is a 1940s 4 br/2 bath, 1450 sq.ft. , is currently occupied.   needs medium/heavy rehab. such as new cabinets,appliances,  bathrooms, update electrical and some plumbing, wood floors in good condition,  it has window units for A/C ,as most of the other houses in the area, forced heat.

I only want to put about 20K in renovations  and  can have it ready in 3 mo.   We plan to do much of the work ourselves.

total cash in -$64K

estimated ARV-$120K

rent is expected to be $1000/mo

this is a cash deal, no financing and i have 30 days due diligence from today.

my questions:

1.  what do you think so far?

2. flip or BRRR?

2. I have cash , but should i use  hard money or my cash? is there an advantage for either?  I really don't want to tie it up here for 6-12 mo waiting for refi.

3. i used the BRRR model using the numbers above and it doesn't seem like a good deal, but how can having over $60 in equity not be a good deal? ( i must have not put in the numbers in quite right, though i have run them many times)

Any help here is very much appreciated.  I am getting paralyzed

thanks

Sound advise from both of you. I agree, way more than I am ready for. I'll find something with trading wheels. Thanks. 

  The house is less than 10 yo log cabin/Mountain home in a very nice neighborhood, surrounded by the beautiful smokey mountains  and valued over 300K before there was a partial fire about 3 yrs ago.  a large section, including the roof left a big "hole" in it.  I asked the owners about buying it and they responded with " $150,000 would be a fair price".   I don't have the cash to buy it and rehab it (no clue on what it would take to repair/rehab it at this point since i have not even walked through it).  i am very inexperienced with how to fund projects, but i know there must be a way.  I would think the owners are really eager to sell it or fix  and keep it since it is on the family farm with its own property deed.  i do not know if it is mortgaged.  Any cleaver ideas in which i could partner with the current owners and somebody's private money , so that we all profit in this? 

i have a few rudimentary thoughts:

1.  owner provides the burned property 2.  -i propose to fix the house using "'private money" , better yet,  a partner, and secure the funds (i don't really know how)

2.the house is repaired, value at 300K, the owner gets the 100K, i get the house for 100K, the private money lender get the repair loan and interest (100K?)

3.or the house is repaired , value 300K, the owner keeps the house and refinances it, I get 100K, and rehab loan of 100K gets paid back

***the elephant in the room is: Is it a good idea to work with a burned house to begin with and everything else is a moot point!

Please chime in with any ideas and help me think this out.

hello all, 

i have been hanging out and learning tons on Bigger Pockets for a while and thought i had better formally introduce myself. I live in a small community west of Asheville NC. I having been practicing medicine for about 20 years. Love medicine but hate the bureaucracy that devoured it. This not what i went into medicine for. For years, I have felt that there was nothing else i was qualified to do, in which i could earn a good income and ENJOY as much as taking care of patients. I have been very unhappy for a long time because of this. Everyday looking for "something" else. I stumbled onto the idea of real estate investing when my daughter was purchasing her primary residence. Wandered onto Bigger Pockets....and then all the light came back on. I am very interested in the BRRR model. I get so excited I can hardly sleep, wake up early and stay up late studying this stuff. Its like being in medical school all over again ...and i loved that. I have regained goals, focus, purpose, and I have't even done my first deal. I do have a contract on a little house that i hope i get tomorrow. I know i will need the wisdom of many here. Thanks BIgger Pockets for being so many things for so any people.

 I'm late the the party, but just as good today as it was when first posted. Thank you j.scot. That was A clear explanation of how to calculate a acceptable per door/mo for individual properties. 

thanks peter. 

hello all.

I submitted a contract for my first ever deal. the buyer then said "highest and best tomorrow".  I ask my agent about an escalation clause and she said it was not supported by the real-estate commission and that the seller and buyer would not likely know what that was.  any ideas as to how to proceed? should I insist on putting the clause in (which is what I think I should do) and my agent should educate the others? should I just put in my best bid?  has anyone done this in north Carolina?  bid due by noon tomorrow

hi heather. I've bee looking on the beltline for months for a good Duplex. Send more info please :)

Than you Michael. Those tools are awesome!  The numbers look good. My question is more about experience with reselling a property in the future with multiple houses?  Any inherent pitfalls to this type of property?