All Forum Posts by: Brian Dickerson

In a similar situation to the OP with our units in Rochester as well.  Interested to hear peoples input on this!

I've used both and not had good success with the phone # data either provide.

For those who don't have payroll costs for PPP, the "grant" portion of the EIDL could be an option?  

Commercial and portfolio lenders are an option as others have mentioned.

To answer your question about scaling:

Delayed financing CAN be used in the future to get your $ back soon after rehab with a conventional loan. This requires a knowledgeable lender and title company. You can have the title co include the rehab costs on your closing/HUD statement and direct them how/when to disburse it to your contractor(s). Then you can cash our refi based on the appraised value, up to 100% of what is on your original HUD statement (as long as that puts you at 75% LTV or less; dont quote me on that percent but I believe its correct).

There is a BP podcast where this is talked about. Female guest, from a while back but I don't remember the # or her name.  Also Alexander Felice talks about it on his blog.

 When you and others are stating gross yearly numbers like this, are you including the 13% or so in local taxes that have to be remitted?  I am trying to project net #s and wondering if I need to be taking an immediate 10-13% off the top of these gross #s.  Thanks!

@John Underwood

Didn't Orlando ban STR unless the property is occupied by the owner at the time of the rental? I'm sure people still do to but I wouldn't want to buy into those kind of regulations.

Welcome to BP @Matt Krueger and fellow Delray resident. It's definitely challenging to find a deal in our area especially anything that would be worthwhile for a BRRRR/long term rental. The meetup Mitch mentioned is a bunch of great guys like him, great place to network. You'll find most people are looking out of state or at least out of PB county for deals.

@Frederic Babeux

Definitely agree with the previous post about changing your market. There are better markets (Midwest USA for example) with good quality tenants , newer houses, better returns and not the headache of the new NY laws.

Sorry you had this experience. A painful but important lesson for sure. I looked at a "deal" from NWA in OKC and it was not a deal at all. Many wholesalers ARV & rehab #s are not too accurate

@Timothy Stolyaroff

At one point in time about two years ago, we were in your shoes and lured by the low prices in Rochester (though make sure you're calculating in all of high property taxes in your analysis)!  Let me share our experience with you.

We bought two properties in the Maplewood area of Rochester which seemed "turnkey".  One at about 60k and duplex around 70k.

The properties in this area & price range are old properties from the early 1900s.  Unless you do a full rehab, there will be maintenance issues at a much higher frequency than your average property.  

In addition, these are not the best areas.  Evictions are fairly common, especially without a very well screened tenant.  These types of tenants need a lot more attention than in a better area.

To compound the issues, the property managers who operate in these areas are notoriously bad.  They simply don't care enough to stay on top of the tenants, and will nickel and dime you for maintenance.  We just fired our property manager and our properties (and tenant quality) are performing better than ever now.

The one thing the area has going for it is that there are a LOT of renters.  We got tons of applications on our last vacancies.  But you won't see appreciation any time soon.

I would not buy another property in Rochester as an out of state investor though and would strongly recommend against it to a new investor.  I suggest you read the new landlord tenant laws that went into effect in NY earlier this year as well.  There are much better places to invest with a lot less headache.  We learned the hard way!