All Forum Posts by: Asa Ifill

Hello BP family! I am living in Huntsville, AL currently and have been since 2005. I am a newly motivated real estate investor looking to buy my first deal. 

I know that Madison is a good area with good schools but I don't think you will find any reasonable priced MFH in that area. 

The heart of Huntsville (35806) (35801) (35802) would be a good area to start with MFH then go outward on the map in my opinion. 

Home your trip goes well and you find some good deals! 

Maybe we can connect upon your arrival in Huntsville. 

Thanks, 

Asa

@Randy Wiley Randy, great question! You could get a HELOC out on the property and use those proceeds towards another real estate investment since the property is paid off and has full equity in it!

I'd look into seeing what your house is worth and talking to a local bank and seeing what the LTV percentage is that they'll loan you, most banks are 75%-90 if I'm not mistaken?

I’m looking to do this for my first real estate investment as well.

I’m looking to use conventional financing to get funds for the property + rehab and live in the property for a year and then refi and use those proceeds to another investment and continue to do that until I have enough capital for a 20% down payment.

Good luck on your endeavors and keep us posted!!

Thanks,

Asa

Thanks for all of the help team! 

I believe I was getting wrapped up into it being my first deal and wanting to jump on something in a hurry. My goal is to have several single family homes rented out before the end of next year so I need to stray away from this specific deal as it could end me before I even start.

I will continue to do my due diligence on SFH and look for the best deals that can comply with me, my team and my goals.

Thanks again for the advice team, 

Asa 

@Michael S. Thanks for the reply! I believe I have come to my senses from all of the comments that were left on my post.

Since it being my first deal I think I got really eager into thinking about actually going thru with the deal. Of course I would have contingencies before buying but for my first deal this should’ve been a no from the jump for me.

The last thing I want to do is get discouraged from a bad deal especially it being my first one.

Thanks for the help!

@Will Barnard my rehab estimate would’ve been $30k for a 90k house, that was before I figured out about the foundation...

Now I’m thinking 30k would just be for foundation itself.

I would have to take this property well below what they’re asking considering all of the repairs needed.

Thanks for the feedback!

@Peter McDonough thanks for the reply!

haha, you hit it right on the head!

I looked at this property yesterday and it had a ton of cracks. I was estimating a few piers but not several like how you’re talking.

I want to get an estimate on the property with some contingencies, if I can get it well under asking price maybe it can work.

Do you do any investing yourself? I'd love to talk the BRRRR strategy some.

 I am from Huntsville, Alabama as well. Getting a few buy & hold start homes under my belt. Huntsville is looking great! Google, Facebook, FBI, Mazda plant, new Toyota plant are all coming here within the next 5 years. 

I have been looking at several homes in the heart of Huntsville that need rehab work and which have a significant amount of equity after the rehab is done. I'm looking to perform the BRRRR process on all of the homes I buy in Huntsville, because this place is about to pop!

I have just sent an offer in on a $95k bank owned property that ARV's for $176k.

If anyone would like to work in Huntsville, let me know!

Hello BP! I have almost made my first offer on a foreclosed property!

Needless to say the property has foundation issues..the home is on a hill in Huntsville, AL and was built in 1971 - 1,860 Sqft (Tri-level home)

It has cracks throughout the home. On the top of the window seals there is cracking on the corners on almost every entry way.

There is also a big crack going up the stairway on the ceiling, almost looking like the house is separating apart.

There is another foundation issue that scares me is near the fire place, it looks like the fireplace (wall) and the connecting wall to it is coming apart....

Has anyone dealt with foundation issues like this? I know some of this issue could be because of settling issues but I think it is far more than that.

They want 95k for the bank owned property and the comparable properties average $176k so if the foundation issue isn’t so expensive shouldn’t this be a good deal??

Has anyone dealt with foundation issues that can spare some knowledge?

Please and thank you,

Asa

@Dustin Thoms

Dustin, great post! I am currently live in Huntsville, Alabama and am trying to find core members to successfully complete my first BRRRR property. I see you recommended Caroline Davis with the Davins team..I assume her, as your agent, she understands the BRRRR method and what all needs to happen for it to be successful. Do you recommended her that I see her for properties in the criteria for BRRRR investments?

Also, who do you finance your homes thru that are in Alabama? And did you buy them with cash of did you use a 203k loan?

I am looking for a loan that will give me money for the property + rehab costs.. also, I wouldn’t want to live in the property for a year unless having to.

Do you have any recommendations?

Keep up the good work!!

@Mike McCarthy

Mike, thanks for the reply!

I'll keep all of these considerations in mind when I get closer to this process in the BRRRR method.