All Forum Posts by: Ashley Glinka

Hi all,

We completed our first BRRRR in 2023 and are working on our 2nd cash out refi as we speak. I'm curious if anyone has suggestions on how to run a financial report after the cash out is complete to see exactly how much you have in a project? I may be overthinking it but with using the same account for multiple projects I'm getting a little confused. I keep track of everything in quickbooks. We are also utilizing a HELOC and HML to finance our projects. Any suggestions would be appreciated! Thank you.

Quote from @Andrew Bosco:

do you rent to just LTR tenants or have STR/MTR? based on that answer - I can defer some good options. @Andy Verge

 I'd like to hear your recommendations for LTR's.

Does anyone on here use the tenant screening option? Has it been an easy process? What other programs would you use to have a tenant submit an application and run credit/background on their own? Has anyone used the RentPrep Tenant Screening offered through Bigger Pockets?

Hi all,

I manage a group of 36 townhomes, owned by two older couples who are related to one another.  At our last meeting I approached them about the opportunity to purchase the property from them if they ever choose to sell.  We have a great relationship and I truly love the neighborhood. I hadn't figured out how I would purchase it-but if they gave me the opportunity-I would do what I needed to figure it out!  They did discuss this option and would be willing to give me the opportunity but ultimately said it wouldn't work because they purchased this neighborhood through a 1031 exchange.  They said they'll have to hand it down in their estates.  Does anyone know of anything I can do to make it work for them and me?! There's got to be something I can approach them with so that it would make sense for them to sell to me? Or is there really no way around it? Please send me any creative ideas you may have!

Right-you just want to make sure you give the tenant proper notice according to the lease.  The lease I use says the landlord has to give the tenant a 30 day notice of any changes to the existing lease.  As far as I know, there is no set limit on how much you can increase the rent.  I think as long as it's within fair market values you should be fine.  We typically raise ours 5%/year.  

We are in a similar situation in a duplex we have but the current, and only tenant, is only paying $636 for her unit.  She did say she would like to stay and wants to move into the back unit as soon as we get it renovated but the numbers just won't work for her.  The new rent will be about $1150-$1200/month and she won't meet our rental criteria (3 x the monthly rent in income and 600+ credit score).  Unfortunately, we will have to give her notice soon so we can get her out of the front unit once we are done renovating the back unit.  Had she met the criteria-we would have gladly let her stay.  It doesn't matter to us who is in the unit as long as they meet our criteria.  

Quote from @Andrew Postell:

@Ashley Glinka most strategies would tell you to have a business account for each company you hold.  So if you don't have a business yet, create one and keep all the business transactions through that account.  If you do have one, then your operational funds are held in that business account.  You can certainly have 2 business accounts for the same company if you see fit.  Hope that answers your question.

 Thanks.  We do have a business checking and saving account set up.  I might set up another account just to hold the money that is essentially being set aside for these items.  Or maybe take out the cash flow and start adding that to another account to be used for another project.  I feel like it should be in separate accounts.  Maybe that's just me.  I will be using QB too so I can always keep track of it that way I guess.  Nonetheless-thank you for taking the time to respond.  

Hi All,

My husband and I recently purchased our first property, a duplex. We are in the middle of renovating it. My question is: Once we get through the BRRRR process and we begin putting money towards vacancy, repairs, capex-what do you do with that money? Do you keep it in your business checking account? Do you transfer to a separate account? Where does it go? I am a person who likes things to be in order or have a specific place they belong so the thought of combining this money with money from other future properties we buy doesn't really fly with me:) Suggestions welcome!

Quote from @Tim Herman:

@Ashley Glinka a vacancy factor of 4% is your tenant staying an average of 25 months. How long to get back to 4% if it takes you 3 months to get the tenants evicted:75 months. Banks usually underwrite at 5%. Have you run a capex and repair budget. Here would be a simple repair budget. Cost to repaint between tenants+cost of cleaning+cost of repairs. Assume $1500 for painting+$300 for cleaning +2 repairs @$150 each=$2100/25 months=$84 per month for a repair budget.  You would do a capex similar. Take all the major components and estimate how much to save per month. An example of 1 item in a capex budget. Assume a roof costs $7500. Lifespan of 25 years. $7500/25 years lifespan/12 months in a year=$25 per month. What if you have a 15 year old roof. Your new effective lifespan is 10 years. $7500/10 years/12 months in a year=$62.50 per month for 1 item. On my rough estimates I use 10% for capex.  Refi in 6 months I would use 8% as the interest rate. Feds are looking to raise the prime 1/2 to 3/4% at the November meeting. Mortgage rates usually follow. You are not including any property management. Always good to include. Even making changes I think it will be positive cash flow. 

Thanks for this info Tim.  I am a real estate agent and also manage some properties-so we will be self managing our properties for now-while we are young enough to hustle;)  My husband is a contractor and he will be doing all the repairs/maintenance, so that will help out with our costs.  The house is being completely rehabbed now (repairs costs possible b/c we are not paying for labor).  I will raise the interest in my report to reflect the higher percentage.

While I am a real estate agent, I would not call myself an investor friendly real estate agent at this point.  Once I gain knowledge based off of my own research and experience I would like to be able to help other investors.  

Are you an investor yourself? 

Finally took the leap of faith once I realized I was a victim of analysis paralysis! Settled on our first duplex about 8 weeks after I first heard this term.  It really lit a fire in me!  This is what we are working with.  Our plan is to brrrr this property and hold on to it for the long term.  Trying to get through this first deal but we have some big goals ahead of us.  I'd love to hear feedback from experienced investors on what this deal looks like to you-what looks great, what is concerning? 

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