All Forum Posts by: Brian Beck

Thanks for the link!

Congrats!   I really like the idea of 'Subject To' financing but don't know too much about it.  Seems like it really help you to get this deal going!

I would ensure you have a bank/lender who'll do the refinance. Without W2 income and a limited track record I think you may find it difficult to refinance the property just based on the property's cash flow along, they'll likely want a personal guarantee by yourself and proof that you can support the payments if it goes unrented or your tenant doesn't pay rent, etc... There are definitely people who do BRRRR w/o a traditional job but many of them have experience or a track record in rental properties that a bank would look favorably upon. If you have a bank or lender who you have a relationship with I'd run the deal by them and ask them realistically if they'd be able to quality you on the refi.

I believe what you are looking for is called a 'Blanket Mortgage'.  It allows you to collateralize multiple piece of real estate against a single mortgage.

Looks like @J Scott beat me to the punch haha, pretty much exactly what he said!

That's going to vary heavily depending on the scope of work and the quality of material you are using.  In theory you could have $60K labor only contract where you are supplying everything or as little as $10K in Labor and $50K in high end materials.    

The scope of work itself will be the biggest determinant in what this should look like, then from there the neighborhood will dictate the quality of materials and cost of labor.   

Hi @Cuong D Nguyen

There is a REIA based down in Fredericksburg that has some local rental focused investors in it. I live and am familiar with the area but don't have any rentals in the area myself. I'll PM you some info that may be more helpful to you. Fredericksburg does offer a lot of the benefits of NoVa with a lower price point, and does have a rather big transient population due to the military/government.

Please do let me know if you have specific areas you have questions on and I'll do my best to answer for you!

This'll vary tremendously on the type of property, number of sales and city.   In some cities you may be breaking down to a city block or two for true comps, other areas in the suburbs it may be a specific neighborhood (one side of the highway versus the other), the more rural you go and more unique the property the harder it will be to find a true comparative sale.  If you're looking in the city their should be much more in terms of nearby recent sales of comparable properties.

You'll probably get a very wide array of responses. A lot of it I think comes down to what you have to protect (in term of do you own a primary residence, have large cash reserves, etc..., things that can be taken if someone were to sue)? Also important is what type of investment you are purchasing, flip property, rental, etc...? Lastly, how you plan to purchase, if you are financing it traditionally I don't know if it matters as much but if you are utilizing a hard money lender I believe it has to be financed thru an LLC as opposed to a person. I know there is no real answer in there but hopefully points in the right direction of things to evaluate when making the decision.

I can't speak to Milwaukee directly but typically as a general contractor or a homeowner you'll have to pull a building permit (this covers general building, demolition, any structural changes (engineer drawings required in my area) etc...).  The subcontractors in the specialty trades such as Electrician, Plumber/Gas, HVAC, Hazardous Material, Etc...will typically also be required to pull their own permit.   Sometimes this is pulled under the general building permit if it's a whole renovation as opposed to only a single-tradesman.   

You do want to cover this with your tradesman/subcontractor's and want it detailed in your contract, if it's not in there, they most likely won't pull it.  I'd definitely try to reach out to someone familiar with the jurisdiction your working in as the norms vary greatly geographically.