All Forum Posts by: Charles Moore

Hi, all.

Can anyone recommend a full-service investment company in the Indianapolis market? By that I mean a company that will acquire and sell to me a distressed property, handle rehab I pay for, and then provide good leasing and property management in-house afterwards?

I'm looking for single family in B class or better neighborhoods. I want to find real estate valued at $260K or more to make a 1031 work when I sell a current property a few months from now, so a few different properties to buy at once.

Not looking for turnkey that sells at retail prices, but for properties I can build  25% + appreciation into with rehabbing that will allow me to refinance latter on to follow the BRRRR strategy. Thanks!

thanks to all of you! I'll explore other markets as well now.

Hi, all.

Can anyone recommend a full-service investment company in the Dallas-Fort Worth market? By that I mean a company that will acquire and sell to me a distressed property, handle rehab I pay for, and then provide good leasing and property management in-house afterwards?

I'm looking for either single family or multifamily in B class or better neighborhoods, with homes that don't have that clay under them that causes foundation issues. I want to find real estate valued at $260K or more to make a 1031 work when I sell a current property a few months from now.

Not looking for turnkey that sells at retail prices, but for properties I can build appreciation into with rehabbing that will allow me to refinance latter on to follow the BRRRR strategy. Thanks!

Hi, all. So I'm looking at a future BRRRR project at which time I will already have 4-5 other mortgages. I'm seeing mention on BP that cash-out refinances for BRRRRs after 4 mortgages have to go through delayed financing, which allows refinancing up to the original purchase price and closing costs, but no mention of covering rehab costs. Am I understanding this right? What else would I need to know about this in that situation?

Hi, all!

Thanks to BP, I've acquired my first out-of-state turnkey rental in Memphis with minimal difficulty, and probably more to come.

But I have another opportunity I wish to explore alongside that. My primary residence in the crazy hot Seattle area has appreciated so much in the last few years that I could take out a substantial HELOC on it (over $250K) through a local credit union with a 15-year fixed term at 3.99%. I'm thinking I can take advantage of this using Brandon Turner's BRRRR strategy to buy a distressed property (in an A or B neighborhood) in Memphis using the HELOC to cover the discounted purchase price and rehab, rent it, then refinance it 6-12 months later into a conventional 30-year fixed, and repeat.

But I've read on BP about the dangers of doing this long-distance, namely lack of boots on the ground to represent you and watch out for your best interests.

Can anyone recommend the following to put on a Memphis team?

- agent

- closing attorney 

- title company 

- contractor

- property manager

- insurance agent

- lender who would refinance in shortest time (ideally less than 12 months)

- possible representative to oversee all this and be my boots on the ground?

I've already got an inspector and CPA.

Thanks!

@Andrew Young, just checking in - have you found a good market and team on the ground there to perform an out-of-state brrrr in?

Thanks for the quick input, all! Glad I'm able to tap into your experience.

Hi, all,

I will be listing my north Seattle area condo for sale later in 2016 - most likely September after my tenants' lease is up Aug 31st. At least, that was the original plan.

My tenants contacted me recently and stated their own offer on a house was accepted, but it's new construction that won't be ready until November 2016. They're asking if they can stay through then and are willing to pay a higher rent during those months to compensate, so about 3 more months. That would put me in December to list with a sale in January being the most likely scenario.

So my question is, given how hot the Seattle market has been this year, would it make any difference if I listed the condo in September or December? Fall months traditionally get the seller better pricing and faster closing than winter, but does Seattle's hot market override that? Would those few extra months see prices continue to rise, while a bit more of the mortgage is paid down?

thank you all for your input! Here is some more info about the situation:

- the turnkey provider is Memphis Invest, so no west coast marketers involved. And yes, they must have purchased it for $25K.

- they're telling me it will be a complete rehab costing $40K, and judging from previous photos of the interior I saw on another website, I can believe that - it looked like a hoarder's home, and they've already removed 2-3 giant trees from the front yard that obstructed  the house.

- they're telling me they have an algorithm they use with purchase price, carrying costs, closing costs as well as renovation prices that gives them the purchase price of $91,900. They also say 80% of their appraisals come in at contract price and the other 20% is within 5K.

- the fixed expenses I'm predicting are (based on their predicted appraisal of $91,900): principle and interest - $388.28 @ 4.625%, taxes (county and city) of $148.75, and insurance at $42.58. Take out 10% for PM, 5% for maintenance and another 5% for vacancy. Now that I ran the numbers again, it looks even worse.

- I guess what I'm not clear about is since they have such a stellar reputation, and I met and talked with a ton of their investors just a week ago, why they presented me with this questionable property and it doesn't seem to measure up?

Hi, I thought I would get the turnkey community's thoughts on this property I've been presented with:

- address: 4933 Fernbrook Dr, Memphis, TN

- purchase price: $91,900

- 4BD, 2BA

- single carport

- projected rent: $895

- financed with 20% down, plus closing costs, for around $22K out of pocket.

- estimated $550 PITI

- neighborhood crime rate: low

- quality of nearby public schools: poor

- comps seem to range from $42K - $80K

My initial thoughts are that I should pass on this, as it barely meets the 1% rule, is in an area with poor quality schools, and lower comps, and only shows a 9% ROI after maintenance and vacancy. But I wanted to see if anyone else has some thoughts?