All Forum Posts by: Eric Sammons

I invest nearby (Delhi and Bridgetown), but I have looked there a few times. It's a Class C neighborhood (even some Class D). The prices are affordable, and many properties need rehab (so perfect for BRRRR). I haven't yet jumped in there, primarily because my current property manager doesn't manage property in that area.

Hello,

I have a SFH (1,200 sf) in Steubenville, OH, which is about 40 minutes west of Pittsburg, PA. I've been trying for 17+ months to get the siding either replaced or repaired without success. My first contractor dropped out of the project after 6 months of delay, and since then everyone I've reached out to hasn't responded or didn't give a quote when they said they would. Being a small town, there just isn't that many contractors available locally.

The city recently sent me a notice that the siding needs to be repaired/replaced or I'd face daily fines. Even when I explained my situation, they said there was nothing they could do.

So I'm here seeing if there is anyone available to give me a quote for repairing/replacing the siding for my SFH in Steubenville, OH. Feel free to DM me or respond here. Thanks!

Eric

@Jaron Walling Well, I guess it's good to hear that my bank is likely unique on this. I've already put in a call to another lender. Thanks!

Hello,

I've been investing in rental properties for 3+ years now, but I did my first BRRR recently. I bought a distressed SFH back in December for $98,000, and then put about $22,000 in rebab. I estimated that it would appraise for around $140k-$150k now based on the values of nearby houses. I went to a bank to refinance the property (I have done previous deals with this bank and have a good relationship with them). My bank contact called me the other day and said that the underwriter told him that they likely wouldn't finance more than $100k because I had only put $120k into it, even if it appraised much higher. In other words, it didn't really matter what it appraised at, what mattered is what I put into it.

I was a bit surprised and disappointed, as this model defeats the BRRR program of adding more value through rehab than you spend. Has anyone else encountered this, or do you think this is just a solitary bank doing this? Any insight would be appreciated.

@Lee Yoder: Thank you! That’s exactly what I wanted to know!

@Taj Richardson: my apologies for the delayed response; somehow I missed your message. You can ask for John—he’ll take care of you.

Hello,

I've been a SFH investor for a few years now, and I'm pretty confident in my ability to know how to determine the ARV of a single-family home. However, I'm now starting to look at some duplexes and quads, and I'd like to BRRR them, but I'm not sure how to guess the ARV. I know that appraisals on multi-families are often based on the rental income they produce, but I'm not sure of the formula typically used by an appraiser.

For example, I'm looking at a duplex which I believe could generate $1,350/month after it is fixed up. Does an appraiser only look at that number to determine the value of the house, and if so, how does he calculate it from that number? Or does he also find comps of other duplexes in the area? (In this case, there are only a couple of duplexes in the neighborhood, and they last sold so long ago that the sale price isn't even listed in the county records, although Zillow zestimates them in the $140k range.)

Thanks for any assistance you can give.

@Joseph Kalina: Those neighborhoods are all possibilities, but definitely make sure to have a good real estate agent and/or PM to let you know details about an area. For example, I grew up in Colerain Township, and it has some great neighborhoods, but also some less desirable for investing. Norwood has the potential to really appreciate, but it also has some problem areas.

Also, I've been happy with my PM (EquityTeam), and recommend them.

That strategy is possible in Cincinnati, although finding those deals is becoming more difficult. In general, it’s more likely to find those type of deals on the west side of town (Cincinnati has a pretty significant divide between the west side [more blue collar] and the east side [more well-off]).

I’ve been involved/invested in cryptocurrency since 2013, longer than I’ve been in real estate investing. In fact, it was the rise of cryptocurrency that gave me the initial funds to invest in real estate. Needless to say, I’m a fan of cryptocurrency.

That being said, I’ve always advised people never to invest more in crypto than they are willing to completely lose. Although I’m a firm believe in the underlying tech and the long-term potential of crypto, it’s very risky. The biggest issue is that you can’t say today which cryptocurrencies (if any) will succeed. Although Bitcoin has the biggest name, there are many other cryptocurrencies competing for the market. So investing in Bitcoin now could be like investing in AltaVista in 1997. Sure the concept is good (search engines), but you backed the wrong horse. And if you are not really invested in researching and tracking the different crypto projects, you are just gambling, not investing. 

I still hold a number of cryptocurrencies, but if you are just speculating for a future payday, I’d recommend a very small percentage of your portfolio go to cryptocurrency, and instead stick with tried-and-true investments like real estate.