All Forum Posts by: Gil Happy

Hello,

I am looking for lender recommendations for a single family home in a current state of rehab.

I am currently looking at purchasing a single family home (SFH) that was purchased by a 'flipper' approximately 9 months ago. This flipper recently abandoned this rehab project and are looking to sell due to a 'family situation'.

If I had to guess, I would say that the renovation is 70% completed, but the currently owner / flipper has no intention of completing any further and is looking to sell.

The property is located in GA and I was wondering if anyone has recommendations or suggestions on a traditional bank / credit union lender that would provide a 30 year fixed mortgage on a home in the current state? I would put down 20% and am open to moving into the home and making it our primary residence. However, since we purchased a primary residence back in Oct 2020 (and don't plan to sell), it might not qualify.  As well, I would 'not' need the loan to include extra money to complete the renovations.

Thanks in advance!

Hello,

Does anyone know how accurate this real estate rental calculator is in terms of IRR:

- https://www.calculator.net/ren...

Thanks in advance!

Thanks so much @Nathan Gesner.... this is excellent info!  I will certainly look to add this info.

Thank you @Theresa Harris.... I see that in one of my rental contracts (I have a couple of different ones for different properties), that there is a section for 'earnest' money.  I have sent the rental contract over to the perspective tenant indicating the earnest money needs to be paid in order to reserve / guarantee the rental.  This will go towards the move-in amount when they move in.  Then I indicated if they back out, they forfeit the earnest money.

In my case, the earnest money was the damage deposit + cleaning fee.

Thank you for this @Stephen Kehoe..... so you recommend to get the rent, security deposit, and cleaning fee asap and tell the renter that it is non-refundable?

Hello,

I need some guidance on how to handle first month rent, security deposit, and cleaning fee.

To explain, I am currently living in my condo with all of my furniture and I have it up for rent and I have someone who is very interested in renting my condo. In fact, they have passed the screening process (criminal and credit check) with flying colors and would like to move forward with next steps

Here is my predicament - they are moving from out of town and found my place online and love it. In fact, their new job starts on September 1, but they want to move in around the middle of August. My question is, since they never viewed my condo in person (it is in a great location and was completely renovated a couple of months ago - I have previously been doing corporate rentals on it for many years), how do I make sure that when they arrive, they don't want to back out of moving into my condo after I have moved all my furniture of the unit, cancelled utilities, etc?

Do I collect all of the rent, damage deposit, and cleaning fee in the next day or so and tell them it is non-refundable? Do I collect everything on the day that they move in? Basically I don't want them to back out after I have moved out in case for some strange reason they say it doesn't look like the pictures, or that the location is not what they think it was, etc? At the end of the day, I want them to feel comfortable with their decision, but I don't want to move my furniture out and have them back out for any reason.

Any help is greatly appreciated!

Thank you so much JD..... this is great information. As mentioned, I'm in the process of reaching out to some lenders discussed on BP for a HELOC.

Thank you for this.... Unfortunately my partner and I are unable to come up with the 20% in a timely fashion. I am currently reaching out a couple of bankers to see what my HELOC options are. I guess I would need to figure out what the opportunity costs are on the 20% we could raise if we ended up having to.

Hello,

I have a question about the BRRRR method - actually, it may not be about the BRRRR method, but rather the best method to finance single family homes (SFH) used for rental purposes. Here is my situation:

- My primary residence has about 300k (3.125%) remaining on a 17 year mortgage and has a current market value of about 850k (I currently do VRBO / AirBnb rentals and has an IRR of ~15%).

- I have condo that I own free and clear and is worth approximately 200k (I do rentals on this as well).

- I have a vacation home that own that was purchased 3 years ago for 340k (3.5% for 30 years) with 10% down is now worth at least 380k, but probably closer to 400k (currently rented long term with an IRR of ~15%)

That being said, I'm looking to purchase my next investment (SFH) which would be 3bd / 2ba home in a nearby market that would cost up to 200k. I know how much this home would need to rent for based upon for a decent IRR (+10%), but I am trying to determine the best method to finance.

Since this will be an investment home, it will require 20% down + plus closing costs. My questions are:

- Should I get a HELOC on one of my existing properties to use for the 20% down payment? If so, which property should I use?

- Should I just save up the 20% with my partner instead?

- I would start with a single, SFH and get it rented out, and then purchase a second home, and repeat.

My plan is not necessarily to rehab (unless it is needed), but rather to find homes in areas with low price-rent ratios and rent them out straight away.

Any help or advice is greatly appreciated. Thanks in advance!

Hello,

Does anyone know where the Zillow Price-Rent Data is?  When I last checked (I believe with the last year or so), I was able to download and access the price-rent data, but now I no longer see this available.

Has this been replaced by a better, newer metric?  Is this now paid information, etc?

Thanks in advance!