All Forum Posts by: Christian Nachtrieb

 Absolutely. I ran the numbers a ton on this current remodel. Purchase price was $225k for a 3br/1ba with 1063 sq. feet. Budget for the remodel was about $35k, I'm over by about $2k so call it $37k. Based on comp sales in the area I'm seeing between $350-$400 per square foot for a finished and redone unit, and rental rates for a 3br are very comfortably between $2300-$2600/mo.

@Mike Lock Hey Mike, welcome to the forums. I agree Boston can be incredibly tricky to find solid BRRRR deals especially if you're just starting out. It took me a little while to find my first two, they are located in Dorchester Center and I love that area. There's still some pockets that are up and coming, I generally am looking around Peabody Sq and Codman Sq. and am in the middle of a rehab down there. Next time around I'm going to be working on a strategy for hunting down off-market deals because pretty much anything on the MLS will be prohibitive for refinancing and pulling cash back out.

I just got a 10/1 ARM for 4.375% on an investment property.

The trick is finding a good enough deal that you get all of your capital back, while also being able to leave 25% equity in the property AND have it still cashflow. It works on the right deal.

In a lot of ways, being able to get ANY of your initial capital back while still retaining the asset and continuing to cash flow is a major win. My first property I didn't know about the BRRRR process and assumed I would be leaving my entire down payment in the house for the long term. However when rates dipped this summer I was able to cash out refinance half my initial investment back. That's awesome. If I knew better I would've done things different, but I'm happy getting anything back out and still getting to keep the property.

Hey Kate,

I believe I saw your listing the other day and your properties are stunning! Excellent work on the finishes. Perhaps too good? I actually own a unit on 43 Whitfield Street, just down the road from you. You're spot on about the "up and coming" of Codman Sq. There's still some activity around there that's going to frighten away some of your potential buyer pool. There was even a gunshot on Whitfield the other night a few weeks ago according to my neighbor.

My guess is that you over did it a little on the rehab. It's almost too beautiful for that neighborhood... at least for now. Give it a couple years but you might want to consider getting some renters in there at $2500/mo. I know that old mechanic building on the corner on Talbot is getting redeveloped soon, perhaps in the near future when there's a little more revitalization will you have some better luck.

Again, stunning job on those!

Christian

Move swiftly. The absolute soonest possible (depending on your local laws) you can have them out from a non-renewal is August 1st. You have until the end of June to issue them a 30 day notice of non-renewal. Then, if they DON'T move out.. which you SHOULD plan for.. you either have the option of "cash for keys," or eviction. Get a lawyer to handle the eviction. It's worth it in my opinion.

You're about $1200 higher than my last closing for a house that was twice the cost of your's. A condo, not a duplex. From where I'm sitting it looks like your lender is charging you more in fees than what's typical and they're bundling in your insurance pre-payments. I normally don't include insurance in my closing costs so maybe that's contributing to it.

@Bill B. @Frank Geiger Thanks guys. I think that works, I have a HELOC for $80k that I would be able to use as a rehab budget and then just keep the down payment money on hand and liquid. What sucks is I'm in a pricy market in Boston and 25% down is a pretty large chunk of change. Oh well, I suppose it's more ideal to be able to pounce when opportunity strikes.

I'm in the process of cash-out refinancing a property, as well as another come September. Small timer here, only 2 investment properties plus by home.. just trying to figure out how much cash I should have on-hand ready to deploy for my next deal when one comes along, OR in the event of a market downturn I'd want to be able to act. Is there any rule to go by? Like % of total assets, is it based on your market you're looking in? I'm not sure what I should be aiming to keep liquid in a paltry 2% savings account while I'm in limbo here.

Any advice appreciated, thanks!

Christian