All Forum Posts by: Dan Shelhamer

I currently have 7 total units in my state (IL), but will be moving to Scottsdale in September and plan to start acquiring rentals in AZ. Bigger Pockets has been life changing for me as I’ve entered into RE Investing over the last 18 months.

@Luke Marlar looks great!  I am assuming you did the work yourself since it looks like a big improvement for only $10K?

@Julie Marquez awesome, thanks so much for the information!

@Jay Thomas thanks!  I was looking at this tool the other day as well.  Do you think ripping out the existing floor and leveling would be an additional charge on top of these numbers or would that all be included?

About to start a full rehab.  Just wondering what an average installation of vinyl planks would be including ripping up the existing floor and leveling out the floor.  Seems like most big companies start at $1.50-$2.00/ square foot.

Originally posted by @Adam Drummond:

@Keith Jourdan

Hey Keith,

I am in the process of fixing up my first brrr property that i recently bought (not my first remodel, but my first brrr).  Do you always pull the max amount out of the property?  I bought my house for 32k cash, and in the process of remodling it myself.  I will put about 12k worth of remodeling in the house, and it should appraise for about 75-85k.  I haven't made my mind up if i want to borrow the max amount, or just enough to reimburse myself  about $40k.  If i go with the lower amount, i will be able to pay it off quicker.  However, the extra money will allow me more money to invest in another property.  Sorry for the lengthy questions.   

Thanks man.

Adam

Adam, personally I'd rather pull as much as I can out of the deal in order to use that on your next deal instead of having "dead" money sitting there. As long as it cash flows at your minimum target number, then I would leverage it as much as you can. Most lenders will only lend you up to 75-80% LTV anyways.

Also, depends on your goals.  Are you looking to scale up or just wanting a couple properties paid off as fast as possible.

Originally posted by @Sean Trily:

So why did you buy the property all cash? Just because its a bankruptcy?

 You can usually get a better deal paying all cash, close quicker, and only have to pay closing costs once instead of twice. 

Great job on the BRRRR! I am about to begin my 1st one as I close on January 25th. Very similar numbers to yours but how did you get all of that work done for $21,000?!

My rehab is $34,000 with all supplies and that’s not including any roof work or adding a bathroom like you did. 

@Kyle J. I agree that it needs to be spelled out in the lease, which unfortunately I don't have, but will be adding this into my lease moving forward.  I think 62 is an accurate number to keep a house at if you are going to be leaving for a few days.

@Wesley W. thanks so much for sending this over. I will definitely be adding this to my lease. Always gotta find the silver lining in everything. I paid $1,800 for a mistake that I won't make again, and based on what I budget for CapEx/Repairs, I am still right on budget for 2017.

@Nick Danaluk I guess every area has something related to weather which can cause some serious issues.  I will be relocating to the Phoenix area so won't have to deal with freezing pipes anymore, but I'm sure AC units won't be lasting as long out there.

@Brie Schmidt thank you for the suggestion!  I am going to start messaging them all as well.

@James Wise  All valid points!  Sometimes its not worth making a big deal out of it unless you do want them out.  Luckily this is a property with 25%+ cash flow so I am able to pay for it with what I budgeted for repairs, and also believe these tenants will be with me long term.  They also paid for 12 months up front which helps.

@Cara Lonsdale unfortunately my lease doesn't have anything in it to cover this, but I will be revising and updating my lease.

@Dawn Anastasi thank you for the input!

@Steven J. I don't have anything in my lease right now that addresses this, although I definitely will be adding it.  They are good tenants, and actually paid 12 months rent up front and they do plan on staying long term.  I haven't had any issues with them thus far.
@Josh C. I didn't file a claim with insurance.  I didn't think they would cover something like this, and if they did it wouldn't be worth paying the deductible and having my rates go up.
@Pat L. I am not sure if he did that.  Is that a certain type of piping?  He did tell me that he did it in a certain way where if it happened again, it would be a lot easier to replace the piping.