All Forum Posts by: Edward Barnes

I read somewhere that refinancing amounts beyond the purchase price of the property would be taxable. Would really hurt the BRRRR strategy. Can't find it now. I don't know if anybody else saw the same thing? I know all RE related stocks took a hit, as it pretty much disincentivizes anyone from buying a home.

Good advice here. Hot water heaters are hardly ever repairable, just more or less rust out and need to be replaced.

You might consider the BRRRR strategy, not sure if that's fast enough for you with the typical six month seasoning period or maybe a 1031 exchange when you sell. Realtors and taxes will eat up your profits.

Cash flows negative esp if you get hit with an assessment. If the numbers don't work. Keep it moving.

Doesn't look good to me. As a rental it won't cash flow as-is as it's less than a 1% deal (actually .83%) and definitely not after you refi after the rehab assuming your 100% LTV (.65%). Also you're not going to be able to cash out refi at 100% LTV, maybe 85% tops ($391K). You're financing $360K + $80K = $440K all in for $460 ARV. Couldn't even pay the realtors to flip it. 70% rule for flips, you'd have to be all in at $322K, lot of ppl make money on flips at 80%, still $368K. Look at 2% rule for cash flow and 70% rule for flips and then look at Hampton Roads ;).

Portsmouth is pretty rough. Also has high property taxes and even worse is how high the tax assessments are. City govt seems like it's always in turmoil.

By multifamily I assume you're talking about 2-4 units properties. There are almost none on the peninsula. They are pretty much all in Norfolk and Portsmouth, or if you want to go as far as downtown Suffolk.

I'm curious why you just didn't sell your primary out right instead of entering into a 3 yr lease? Sounds like would've broke even or even made a little money.

Thought it was a great podcast. I think if Josh Dorkin had been hosting he would've paused and issued a stronger disclaimer against the subletting, but it was fine as is. I didn't come away with any kind of endorsement of subletting. She doesn't have any regrets, well good. If you ask most ppl do they regret things they've done or experienced they're going to say "no" because that made you who are and put you where you are. She was young, starting out and she's laying it out there, how things happened. Not sure if the ppl moralizing are more upset at her, the hosts, or just in general because she's successful by starting off with some shenanigans.

I did a 203K and the contractor had the painter's paint the ceiling the same color of the walls, a tan color. I guess because they were spraying and it was cheaper. It was horrible. Makes it feel real small like the ceiling's closing in on you.