All Forum Posts by: Jeff Bridges

@Leah Pasco I think the order I go is analyze the rental, have your agent contact seller agent to ask if there are any rental restrictions, if there are no restrictions and it works for you, make an offer. During the door diligence period you get a copy of the hoa bylaws to review and confirm those restrictions. Then make final decision on if you cancel contract or proceed and seek advice from bigger pockets at that time based on what you learn. Having owned rental condos, I’d recommend skipping if there are any rental restrictions like a percentage allowed or requiring approval from the board because that is a big risk that can prevent you from renting the unit out based on your schedule. Good luck.

Paint it. Siding doesnt allow you to charge any higher in rent. Consider doing siding if/when you sell in the future if that will boost your final sale price, make it sell faster and/or have a good ROI in consultation with your agent.

There is an entire sub-thread on HUD bidding. The bottom line is they wont accept lowball bids, they will just wait a set period of time, lower the asking and then wait longer, lower the bid etc. The longer the DOM, the lower an offer they will accept. It's very algorithmic and does not support just lowballing, esp with low DOM. Check out below to see some prior discussions that are still somewhat relevant with regards to thresholds.

https://www.biggerpockets.com/...

Originally posted by @Olga Daisel:

@Jeff Bridges

2500$ cashflow per month not per year

Now you've confused all of us. So this is a student group rental house with individual leases? How many rooms/ students will be there? in 2019, student housing had a 2.3% vacancy rate, so there still is a chance of vacancy albeit lower than regular housing. And what do you expect your vacancy rate to be with all colleges being remote for the fall semester to include UT Austin where 20% of its classes will be fully remote? Do you know how many students are returning to Austin in the fall and can you carry the mortgage a year until the pandemic subsides if they do not return in the fall or choose your rental?

Originally posted by @Olga Daisel:

I am in dilemma of investing or not.

I have pined a deal in appreciating area of Austin TX. The house rents for 8600 a month. I can get it for 2.75% and 20% down. That's a good part. The bad part is it costs 1.2 mil. Now after paying mortgage, insurance and property tax I will be left with 2500-3000. I have an anxiety that I will owe too much to bank, feels like a lot of liability. Also I feel that I am getting it without a need of rehab for a full price sort of speak. This is also not what I am used to.

So would YOU go for it or would you not?

I take it you didnt use the official BP calculator and instead did back of the napkin math. In that calculator, we always put 8-10% vacancy into our pro forma. Assume that someone moves out every year and it takes a month to advertise, clean up and move-in new tenants. In your case, if you have any vacancy during the year, you end up in the negative by $6000. Since we all know that vacancies are invevitable, you're not going to cashflow. You dont want to take this deal... sorry...

Use the calculator for all future analysis and maybe start out with deals that meet the 1% criteria and then do calculations if it passes initial muster to save you time:

https://www.biggerpockets.com/...

checkout the free phone app landglide. You find the owner name and mailing address if available and up-to-date from owner. Its a map based visual app and looks useful for when you are out and about and need to check owner info.

@John Warren Thanks for your feedback! I'll probably go with the higher cash out amount.

 

So I have a BRRR house that I purchase with cash, renovated and placed tenants. The seasoning period has passed and I am in process to begin cash out refinance. All in for 195k. My two options are to cash out refi for 136.5k ($7115 cashflow) or 160k ($5600 cashflow). I self manage so I dont have any PM fees that would reduce the cashflow further. I would ideally like to have more money for further investment, but dont know if I am unnecessarily hurting cashflow in favor of just hoarding cash for future rental acquisitions. The cashflow is nice but the cash for other investment also is alluring. Does anyone see these differently or have a different perspective. Just not sure of how others evaluate their BRRR cash out and how they might bring perspective. I'm not near retirement for another 20 years but early retirement using rental cashflow might be nice:)

@Davido Davido @Jim K. and others thanks again. The house is 1945 and you all have good observations. The vent stack is cast iron and there are actually 2 of them. One is behind the toilet and the other is behind the wall next to tub and sink. The kitchen is directly below.

Bathroom window is shown with toilet stack being close to edge of house on left and sink/ tub stack farther back on right.

I will take a closer look at how I can make it work with the new proposed layout.

Should I be proactively replacing that stack with PVC while I have the bathroom gutted?

@Jim K. thanks for your response and taking a look. See below. I Also want to note that the current tub plumbing is on the inside wall where the waste stack sits and I have no intention of moving it to the opposite wall as pictured. I can leave that in place on the inside wall. The layout software didnt provide the ability to move the fixture in the tub to the original spot due to its limitations.