All Forum Posts by: Brian Tschida

@Scott Mac those are all great things to keep In mind. Thank you!

Have my second deal under contract, wanted to throw out some numbers and to see if I'm missing anything. Also the BP calculators are great but this one seems confusing to plug in.

Its a triplex that we are planning to convert to a 4 plex. Currently 2 units are rented at slightly below market rent. Going to keep those tenants to offset the mortgage. The other two will require some more work. We conservatively estimate the rents at (1300,1200,1100,1000) after the rehab.

Purchase Price 275k

Rehab 160k

Conservative Rent $4600

Conservative ARV 370k

For lending, looking at a two part loan (through 1 lender). Construction loan first at 4.5% (interest only, for up to 12 months). Then refinance into a permanent loan (depending on rates) 4.5-5% 30 yr fixed at 75% LTV. I have no problem leaving money in this deal and after accounting for cap x, repairs, vacancy, prop mgmt I have it cash flowing slightly under 400/unit.

What I am missing? What should I be asking? By no means am i trying to hit a home run, just shooting to get on base and aquire a cash flowing asset. Any insight would super helpful.

Brian

Have my second deal under contract, wanted to throw out some numbers and to see if I'm missing anything. Also the BP calculators are great but this one seems confusing to plug in.

Its a triplex that we are planning to convert to a 4 plex. Currently 2 units are rented at slightly below market rent. Going to keep those tenants to offset the mortgage. The other two will require some more work. We conservatively estimate the rents at (1300,1200,1100,1000) after the rehab.

Purchase Price 275k

Rehab 160k

Conservative Rent $4600

Conservative ARV 370k

For lending, looking at a two part loan (through 1 lender). Construction loan first at 4.5% (interest only, for up to 12 months). Then refinance into a permanent loan (depending on rates) 4.5-5% 30 yr fixed at 75% LTV. I have no problem leaving money in this deal and after accounting for cap x, repairs, vacancy, prop mgmt I have it cash flowing slightly under 400/unit.

What I am missing? What should I be asking? By no means am i trying to hit a home run, just shooting to get on base and aquire a cash flowing asset. Any insight would super helpful.

Brian

Being a new investor who has flipped 1 property I'm curious about creating an LLC. I live in California (Bay Area specifically) but am focused on buying property in the Houston area. Is it better to form an LLC where I live in California or where I am doing business in Houston? While I don't plan on leaving California, I do plan on eventually branching out to other markets outside of Texas to buy property (Not sure if that matters). Any thoughts or advice would be helpful. Thank you!

Hey Matthew, would love to join for at least the first hour or so (may have a work thing at 7).

Brian 

@Drew Sygit I'll definitely check those out. Thank you! 

@Charles Carillo Those are some great points. Thank you for the tips.

@Jorge Rico property is in Sunnyside

I am in the process of finding a property management company for my first out of state property (I live in California, property is in Houston). My biggest problem has been that my property is in a rougher part of town and many mgmt companies don't service the area. While I have found/talked to one I like (Stagecoach, the founder was on BP podcast #167) I wan't to make sure its a good fit since I am out of state. 

Besides asking what services they offer, their fees, and how long their properties are on market WHAT ELSE should I be asking? It's hard to find reviews one way or the other. Should I ask for references? Any tips, tricks or advice would be greatly appreciated.

@Turner Wright I actually found the property through my hard money lender who also does some wholesaling. I had a 4 plex that was about to go under contract but fell through. It’s definitely been a process going through with a Brrrr property as my first deal but I am learning a ton.

I chose Houston based on the prices of properties, the amount of growth houston seems to be having and Texas being a little more landlord friendly. Hoping to buy another property by the end of the year.

I’m Brian and although I’m based in San Francisco I recently purchased my first Brrr property in Houston (Sunnyside). Wanted to connect with anyone in the Houston area.

What are you thoughts about the market in Houston? I’d like to buy another property as soon as I get my current one rehabbed and rented but have concerns about the economy and the current climate the US is experiencing.