All Forum Posts by: Bridgette Delva

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Hi @Brady Hlad with the BRRRR strategy for investing, the process is that you take the money from the bank to use it to fund your next deal. Assuming the equity isn't enough to fully fund the deal, yes, you will need to pursue a mortgage or private money to fund the property and the rehab. The BRRRR strategy is intended to help you build your rental portfolio through more of a "marathon" approach so it's not fast money but it's steady cash flow.

Is it possible to trim them back? We were unfortunate enough to experience living in a house where a "healthy" tree fell on our house.  We make every effort to keep our roof line clean and clear not only for potential falling branches from the wind but also because of excessive leaves, rodents and insects that come from the trees.  My vote is to cut it back! 

The first question that pops in my mind is why do you have to split it equally?  I'd encourage to list the room(s) for market value and pocket the profit.  I would encourage you to include a flat rate for utilities in with the rent amount but average it out so that you'll be covered and not coming out of pocket.  Just be sure to let the tenants know what they're paying for. 

I wouldn't cut anyone a deal for renting both rooms unless you are in a bind and the area is hard to rent.  Based on your intro, it sounds like the area is a "desirable location" so I assume that means it's desirable for one-room tenant renters as well.

I would do the math so that you at a minimum include the base rent (split 4 ways) just to make sure it's fair then I would bump up the base rent to market value plus utilities.

BP has lease agreement templates; we've used Zillow to list our rentals mainly because the tenants can do the apps and background through Zillow at their cost.  Even if you list your room other places, you can still list it on Zillow just to take advantage of the app process.  I'm sure there may are likely other tools for this but this is the one we've used.

@Jacob Temple you may sacrifice appreciation in the rural market but I agree that you'll likely have longer term renters.  You are more likely to find a flip better appreciation in an urban market plus you're more likely to have more demand for renters.  Survey the market for current listings to get a feel for the areas you're exploring. 

Hi @Brian Balthasar that's always a tough question.  My husband owned a low voltage trade company for years and even he had a hard time finding other trade owners who were actually reputable AND knew their stuff!

Here's what I'd offer up as some tips to find and vet your trade contractors:

1. Take advantage of your network first - ask for references so you can start building a list of contractors to assess.  Remember that a referral isn't a green light that the subcontractor is good but it helps you start getting some names
2. Use Google, Yelp, Home Advisor, Angie's List and Better Business Bureau to find more contractors worthy of investigation
3. Once you do have a solid list of say 5-10 contractors per trade, you can start researching them for reviews, ratings and other online peer reviews
4. Look them up on your state's secretary of state to make sure they are a legit business
5. Start calling them to talk to them about your project and to learn about their process. Do they perform an on-site survey? Do they charge for the on site? Do they provide a written/email proposal? Ask where can you see their work and ask for references.

As you talk to more contractors, you'll be able to assess if the knowledgable from the not.  You'll also be able to determine the real contractors from the handymen posing as contractors. Don't get me wrong, you need handymen on your team but not as a replacement for a specialized tradesman.

I'd recommend is that you do a some research on the project you're doing so you can develop a list of very project-specific questions; this will also serve as part of your "test".

Lastly, there are many books & articles that give more structured advice for finding contractors but here's one from Brandon at BP https://www.biggerpockets.com/blog/home-renovations-find-great-contractors

@Josh Weber if you don't plan to make the place your primary home, it impacts your down payment; as an investment property you'll need 20-25% as a down payment. You can still get a conventional loan just not an FHA loan, they require that you live in the home.

I understand you live for "free" but if you look to pursue your investments, you could still potentially live for "free" if you find a multi-family that cash flows well.  The "free" campus living might be holding you back from getting cheap money to fund your investment career. Just something to think about and ask yourself if it's worth it in the long run.

The only ways I can think of for someone to find the down payment is to maybe talk to your college peers, family, friends to get the down payment. 

@Josh Weber what an incredible time to start off in real estate investing! I love that you're only 18 and are already light years ahead of your peers. If you have stable income and great credit, I would recommend that you try a house hack for your first purchase that way you can take advantage of first time home buyer (assuming you don't own one already), low down payments and low interest rates.

If you house hack then you could still look to BRRRR and could also target multi-units. You have options that allow you to finance as your primary home while building your credibility for investing.

If I were my 18-year old self, I'd house hack a multi-family using BRRRR.

Hi @Riley Herr! That's always a fairly tough one because everyone's taste varies.  As you mentioned, you don't want to pigeon hole yourself into a niche renter or buyer buy trying to preserve the 1930s; that's a VERY unique taste that few will appreciate.  As an investor, it's good to put your investments in a position to be competitive - if everyone wants updated kitchens, stainless steel, and grey walls you give it to them unless you plan on living in the home forever. One caveat is that if you plan to Airbnb it, you could possibly get away with a themed home but likely not with a long-term renter.

One thing that you could do to try and preserve some of the originality is to pick one or two architectural themes you want to accent or feature in specific areas.  That way, you still have some charm but it's modern. For example, if there are original hardwoods, try to restore and re-stain those.  It may be worth it to take advantage of a few free consultations with interior designers just to get some ideas.  Also Pinterest is boss when it comes to inspiration for DIY.

Good luck!

@Chad Gibson I'd have to 100% agree with Mike; the simplest way to go is to simply draft a lease agreement, which is legal and binding and proves that they are paying you (income).  As Mike mentioned, that could be an amount that is exactly equal to your mortgage payment.  I do not think a lease option is relevant unless you don't want to own it and, furthermore, you can't technically transfer title if you don't have the title (bank financed).

Also, what is it that you are looking to accomplish?