All Forum Posts by: Jake Engle

The rehab on my BRRRR Duplex that I purchased is nearing completion. I am 2 months into my 6 months of seasoning before I can refinance on the new appraisal. One question I have is when should I be having the appraisal completed? The appraisal is good for 120 days. Should I have the appraisal completed prior to tenants moving in, or should I wait until the units are fully rented? Thanks for any advice you can provide.

I would certainly prefer that approach to be used, but my understanding is that 4 and under units, they won't put very much weight on either of those methods versing comparative sales. I will definitely make my case that is what should be used based on the lack of comparative sales. 

I am a realtor and it is my local market. I am confident that the property is worth that, but the recent comparable's are so few that the appraiser may have a difficult time using properties very close by. My worst case scenario is an appraisal at $250,000, which still wouldn't be the end of the world, I just wouldn't recoup every dollar invested. 

Picked up an off market property that needed to be rehabbed to be brought back to life. I purchased the property for $165,000. $125,000 was through a private loan with a family member and I covered the rest and rehab. 

My analysis on the numbers are as follows:

Rehab: $30,000

ARV: 270,000

Total Rents: $1350 per side= $2700 plus detached two car garage that could be rented for $100 per month. 

All utilities paid by tenants

Lawn maintenance and snow removal: $150.00 monthly

I understand that there are many other factors involved in this analysis, but on the outside, does this look like a really solid deal?

My only concern is on the appraisal front, as there are very few multi-family units that have sold and the appraiser will have a tougher time coming up with an appraised value. 

Please let me know what other questions that I can answer as I know there are many variables that are likely missing. 

Find yourself a good real estate agent to represent you on the purchase and they should be able to give you a pretty accurate market analysis based on the home and location. Keep in mind that this would not be an appraisal and there would be variables, but they should be able to get you within 10,000 of expected appraisal. It should at least tell you if you are in the right ballpark. 

ARV on property is $240,000. It is pretty much a strictly cosmetic flip. Thanks for the reply.

I am settling on my first flip next week and am up in the air about the extent I should alter the kitchen. I plan on replacing countertops with granite, but am thinking about leaving the cabinets as they are. Would you alter the cabinets in any way? I plan on making another post with all particulars of property to get other guidance and suggestions. Thanks for any opinions offered!

When I am compiling quotes from contractors for fix and flips, should I be including material (Kitchen cabinets, flooring, etc.)? I know from reading other topics on here, a lot of investors purchase the materials themselves with credit cards to get rewards and airline miles. Is the best way to go to just have contractors provide quote for install on them items? Thanks for any input you can provide.

Thank you John,

Once we are able to have a promissory note created, would we then be able to use it as boiler plate moving forward with just a change of address with each property and loan amount?

Hi everybody,

I have funding set up through a family member to obtain a flip. What is officially needed when I go to settlement to arrange for the home to be used as collateral for the loan? Does the title company set up a promissory note to be signed by myself and the lender, or do we type up a promissory note on the side and sign in front of a notary? I just want to be able to make the collateral of the home official on the county property records.

Thanks for any guidance you could provide