All Forum Posts by: Chad Pore

@Alejandro Galo great feedback. Exactly what I was looking for.

@Whitney Hutten thanks for the feedback. This is exactly what I was looking for......... Thoughts from others.

Hello,

We are looking at flooring in our first BRRRR property and were originally planning to do laminate. Recently I have read people talking about luxury vinyl planks and viewed some at the local flooring store. If the price for both is the same per square foot which one will add more value to the home?

Thanks for the responses.

Chad

Hello,

I have a dilemma I looking for some advice/thoughts on regarding a BRRRR property.

Background: Two-story 4/1.5 SFH purchased for $25,000 cash. The cash was pulled from some 0% credit cards (not as advances). Local bank has approved $20,000 construction loan for rehab, but is unwilling to do any more as they feel we do not have any skin in the game. We are expecting $7,500 - $10,000 in rehab on the interior (paint, flooring, cabinets, updated bathrooms). We knew at some point it might need a new roof and new siding, but e were originally not planning on doing much else as we should be able to rent it out for $700-$800.

After reading forums on BiggerPockets, listening to multiple BiggerPockets podcasts, and some discussion we (my brother and I) decided we should go ahead and do everything now. The roof is $7K, vinyl siding is $9K, and windows are 7K. We also need to replace HVAC for about $4K. This brings our total rehab to around $40K. We are expecting ARV to be $85K or higher based on comps in the area.

We are not sure we can fully fund the $40K in the next couple of months.  We know HVAC along with the interior stuff needs completed for sure.  My question is which two of the three (windows, roof, siding) would you replace first if you could not fund all three at once?

Roof: Is old, has three layers with bottom layer being wood.  Needs all layers ripped off, new decking put down, and then new shingles.  Also need roof vents as it currently has none.

Siding:  Currently has masonite siding which was painted sometime in the last couple of years, but you can see water damage throughout.  It is obvious the paint was not good at some point allowing the water damage to occur.

Windows:  Old single pane windows.  Most all of them on the main floor have been caulked shut and we are concerned it was due to air being able to get in/out fairly easily.  The windows that do open are obviously not connected to the weights anymore.

Let me know if you need more info and I appreciate any comments.

Chad

@Kyle M. Way to go Kyle! That’s fantastic brother. Keep going!

@Mario Am thanks for the feedback. Holding and renting is our plan currently depending on how the appraisal ends up.

@Clark Kirkpatrick thanks for the feedback. Many things to consider.

@Jaron Walling thanks for responding. If any of our responses seem different it’s probably that my brother and I both respond on here. Lol

Long term we would like financial freedom for our families to where we could “retire” and spend lots of time it’s grandkids.

Short term is trying to get ourselves off the ground and running. Get multiple properties to get the process going.

As we are new to this what is wrong with an LLC? I know we have discussed maybe should have gotten an SLLC?

Once again thanks for your time.

@Brian Garrett we have a local bank who will finance any amount for us so lower prices properties are no big deal. However, they will only do 15-year and nothing longer so it affects cash flow up front.

@Clark Kirkpatrick thank you. We are trying to get that cash flow for long term but that cash in hand may help get those next properties.

Thank you for your response.