All Forum Posts by: Dylan Phillips

It looks beautiful! You did a great job! I know this post says "to flip or keep?" have you decided what you're going to do? 

6 months! It could have been much faster though! 

My advice: Talk to as many people as possible, sit 5 open houses or more per week including weekends, team up with an investor that you can add value to, cold call all FSBOs in your area, be competitive on your commission rates, & get on a big team with a 50/50 split that will train you! 

@Daniel Luedtke,

If you have already identified the property you intend to offer on and your options for the seller all put together I would just bring it directly to the seller. The only reason I would use an agent on this is if you are not confident in the right way to pitch it to the seller. If you do select an agent to write this up for you, make sure they are "investor-friendly" and also allocate the budget for the agent to be paid somehow through the transaction. 

I hope this answers your question. Please let me know if you need anything. I am happy to help how I can. 

@Orane Jacobs My best advice is to plug in your numbers on the BP B&H calc. 

https://www.biggerpockets.com/buy-and-hold-calculator

This has been the best tool I've used to analyze buy & hold properties. 

@Geoffrey Rios,

I would ask your local investors and see if there are any meetups in your area? What market are you in? 

The reason being, most times there is a hard money lender on site that can answer your questions or at least point you in the right direction. 

There are different types of hard money out there. What it sounds like you are looking for is someone that will finance and give you 80% of the ARV as hard money. But those loans are more risky for hard money guys. They will want to see photos of the property in its current condition, they will run their comps conservatively (as we all should), they will also want to see your track record to see if you have done this before, as well as wanting to see a breakdown of your bids from contractors on the rehab.

I hope this helps. Please reply with any other questions...

@Jason Cosner, If you have any questions let me know... Happy to help!

@Orane Jacobs,

There are a lot of unknown variables here.

Will you be doing the room-by-room rental? Is there any sqft to add another room? Have you asked around in your market to see if anyone else is doing room-by-room to see if the market demands it? 

What is your monthly PITI payment?

Keep in mind that you can always ask the seller to cover a portion of your closing costs. If you reach out to your lender and ask them for a "fee worksheet" or "closing cost worksheet" they will provide you with your VA loan closing costs as well as the VA funding fee amount and other lender fees. You can then provide this to the seller and ask for that dollar amount back for the closing to lower your out of pocket costs.

@Brett Simmon,

I don't personally have much experience with ADU's, but I have lived in a property that has one for rent. The truth is we never heard or saw the people. My biggest recommendation would be if your neighborhood/CCR's allow building a wall up the yard to totally separate it would be best to ease your concern.

I am looking to do this at my house once we move out and turn it into a rental property. 

Yes, theoretically the ADU should increase the value of the home...so long as there is an alternative for parking that's not on the street or uncovered.

...I hope this helps! 

At first glance, it doesn't look like a bad deal. If 237$/mo is good cash flow for YOU then I would run with it and do the deal. If you can afford the 20% down payment have you considered using the BRRRR strategy on a more distressed property that you could add more value to?

To touch more on your question, I don't think there is any specific way to work the numbers to see if it is "worth" investing. The only other things I would do are: run it by maybe another property manager to get a second opinion, check out Rentometer.com, bring it by an agent and ask what they're seeing for the rental market in that area and pull comps for you, and additionally you could email some owners of rental properties on Craigslist in the area and see what their responses look like. 

I would say it's not too out of the ordinary. What I would see more as a red flag is if they're not allowing you a due diligence period, or if they are saying you need to put down hard earnest money. 

Have you bought any multi-family in Atlanta before? I may come across some deals from time to time I can send your way.