All Forum Posts by: Eric Palomino

#Russell Brazil

Thank you for your reply. 

#Shaun Weekes. Thank you for your reply. I had put together comp's, details of construction with costs, and before and after photos of construction.
Thank you for validating these pieces of information. There is only 1 comp that had improvements. We have limited inventory in this area and all sold comp's need major improvements to the property. So the comps the appriser is using are current conditions.When we challenged the low appraisal based on facts of the comp properties, he did not want to make any adjustments ( i.e. comp's had wrong bedroom count, did not factor in being across from a cemetery, did not take into account master bed/bath, school districts etc. and did not account for any finishes, for example, SS appliances, hardwood floors). I am trying to understand how to account for these items, in a more creative way to the appraiser 

My husband and I are trying to accelerate our process in gaining multi-unit properties. We have two properties ( 1- 3 unit and 1-2 unit) in the Chicago area. Within the past year we gain another multi-unit property (2 unit) in the Northwest Suburbs of Chicago. This is our first property in the suburbs. We took out a HELOC to do the construction ( $150,000) and our thought was that this would be a great property that could put us into the BRRR method. However when we had it appraised, the appraisal value came in $ 120,000 under what we anticipated. The appraiser took comps from different suburbs ( about 10 miles away) due to only 1 sale comp in our area that is the most comparable. Additionally, the appraiser used what he " thought' we should get for rent, rather than the actual amount we are getting. the appraiser will not use the gross rent multiplier to appraise us, he will only use his sale comps to do the appraisal. Our lender has reached out and provided the discrepancies within his document as well as provided other comps that best support what we have done, and the appraiser will not budge.

How do we work through this situation to get a fair market value for the property? one option we have is to pay for another appraiser. If this is the best direction, how do I present the most important information to show the value of this property? also what pieces are the most important to show the appraiser? 

We want to make sure we keep this process moving as we need to pay back the HELOC asap. We are also hoping to get additional funds so we can use that on our next property.

Thank you in advance for all suggestions and processes that have worked for you. 

Thank you,

Eric and Ashley 

@Adrien S. Thank you for your comment. We have reached out to a couple brokers in Indiana but we have not received emails back ( very unusual). Do you complete any Muti-unit flips/rehabs within other parts of Indiana? 

Hello,

My husband and I have been trying to figure out the Realestate industry. We both have/had full time jobs ( I Recently resigned to take be a full time mom and to build our Realestate adventure). We actively listen to BP podcasts and we are avid readers to helping our business scale. We cannot back track, but over the course of 9 years, we are learning from our mistakes and educating ourselves to gain the momentum. We currently have 7 units ( 1- 3 flat and 2- 2 flats). Out of the three buildings, one building is in the suburb of Chicago and the other 2 building are in Chicago. I am not sure if we are just not finding the right deals in Chicago/Chicagoland area or we are missing a solid piece knowledge to help us gain momentum. Our goal is 6-8 units for 2019. We are comfortable with out of state investing ( i.e. Indiana, Wisconsin, Iowa), but it just seems like we are missing a piece of the puzzle. 

What type of strategies are BP members using to help you gain momentum? 

@Luan Oliveira- Thank you for your quick response and suggestion! very much appreciated!  

Hi,

I am wondering if someone would be able to assist me in a good streamline process for handling utility bills. We have a total of 7 units. Tenants pay all utilities except for the water bill. At this point in the game I am not in the position to hand over my units to a property manager. While I am growing my portfolio is there a good process that will allow me to keep track of utilities without having to add and remove each time a tenant moves out? 

I am a new real estate investor working on obtaining my third multiunit. I have been purchasing my units in Chicago and the Chicagoland area.  I wanted to see if anyone has experience using a cash out refinance and a home equity line of credit? 

Based on your experience, what costs are involved? 

What did you learn that no-one mentioned to you? 

Are their tax incentives using either one? 

Any additional information would be very helpful! 

Thank you in advance.