All Forum Posts by: Chris Tarpey

We use a combination of hard money and private money. This has allowed us to scale exponentially, and essentially flip houses with $0 of our own money. Sure we sacrifice some profit by doing so, but it allows us to take down 4-5 deals a month.

Definitely recommend using OPM to scale.

You can definitely get a home subject-to and then house hack.

Subject to just means subject to the current financing - so you are taking over the mortgage in place. You will not need a pre approved for this!

I would say this is usually done off-market without realtors or banks. There are closing attorneys who handle sub-to, working with both you and the seller and drafting all necessary documents to close the deal.

I would work with a local agent to rent the property yourself. It sounds like she isn't going to take the initiative, but that shouldn't mean the property stay vacant. I would get that rented and start making money!

Other option would be to buy her out (if able) or sell the property.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $160,000
Cash invested: $25,000

THIS PROPERTY WAS BROUGHT TO US BY A WHOLESALER WEVE DONE A FEW DEALS WITH. IT NEEDED COSMTIC UPDATES TO THE HOME THROUGHOUT (PAINT, BATH UPGRADES, LIGHTS). IT HAD BEEN MOSTLY RENOVATED, BUT VACANT FOR A FEW YEARS AND NEEDED FINISHING UP.

BUILT IN 1901 - WAS AN ORIGINAL HOME TO JACKSONVILLE NC CALLED "THE BENDER HOUSE"

3 BEDROOM 4 BATHROOMS 2300 SQFT!!!

ORIGINALLY A BED AND BREAKFAST - WE HAVE CONVERTED IT BACK TO A HISTORIC BED AND BREAKFAST AIRBNB PROPERTY (BY THE ROOM).

What made you interested in investing in this type of deal?

LIVING IN DOWNTOWN JACKSONVILLE, IVE ALWAYS LOVED THIS HOME. WHEN THE OPPORTUNITY CAME FOR US TO BUY IT AND RESTORE IT TO THE BED AND BREAKFAST IT ONCE WAS...WE JUMPED.

How did you find this deal and how did you negotiate it?

WE FOUND THIS DEAL THROUGH A LOCAL WHOLESALER WE HAVE DONE SOME BUSINESS WITH.

How did you finance this deal?

WE USED OUR NORMAL HARD MONEY LENDER LIMA ONE CAPITAL.

How did you add value to the deal?

WE RENOVATED THE PROPERTY (COSMETIC) AND THEN FURNISHED IT PROPERLY FOR AIRBNB!

What was the outcome?

APPRAISAL FOR ARV CAME IN AT A WHOPPING $315K!!

WE WERE ABLE TO CASH OUT REFINANCE AT 60% KEEPING A GOOD AMOUNT OF EQUITY IN THE DEAL AND STILL RECOVERING OUR CAPITAL AT CLOSING.

Lessons learned? Challenges?

THIS IS A BIG HOUSE - THIS BEING OUR 5TH BNB RENTAL WE UNDERSTOOD THE ASSIGNMENT BUT THIS PROPERTY WAS A TON OF WORK TO PROPERLY FURNISH!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

JUST OUR WHOLESALER, LENDER AND LOCAL ATTORNEY!

 Hey!

Sorry for late reply... yes its been great! We've had steady bookings and are currently locked in a 3 month booking with a travel nurse, we are more so excited to see spring/summer as I feel being close to downtown with a pool/spa has its advantages!

 Hey! Sorry for late response! We did find it in "real estate investors of NC" group. While good deals are scarce, I've met great investors on there who have brought me deals direct. Definitely use it as a place to connect with individuals vice deals and you should get some decent leads!

Let me know if you need a hard money connection! We invest in NC as well and have a great relationship with ours.

We have had some success finding cleaners using Thumbtack? We are able to find most trades on there to take care of our rentals/bnbs!

I would set up and LLC for your business in your state, this can give you liability protection.

We are facing the same thing in our business.

Currently looking at rates around where you are at, maybe a bit higher because of using hard money rental loan.

Crunching our numbers we still CF even at that interest, so I would take a look at that and might help make a decision?