All Forum Posts by: Greg Kasmer

@Elvi San Juan - I agree with what others have mentioned/said. I'll add that most of the time a deal will not work. You'll look at 100 and maybe 5-10 of those "kinda work" and therefore make an offer in order to win/close on 1 of them. Analyzing is a numbers game. Good Luck!

Drago - Good question. I've considered both before... I think it depends on how much pressure you have for your exit. If I can spare longer delays (maybe a month or two) I typically go higher LTV. However, if you have a loan/note due quickly I would tend to go the no-appraisal 65% LTV route.

@Andrew Lee - I'll defer to others for particular details of each market. However, I'd also recommend you consider your ability to have "boots on the ground" in each market or your ability to get to each market (driving or non-stop flight) as part of your analysis/prioritization. Obviously it's not as important as other investing factors, but one to consider if you need a "tie breaker". Thanks!

@Christopher D billik - I think most investors consider all the items above, but by far "The Numbers" eliminate the most properties. If you review (online) properties then I'm guessing that 8/9 out of 10 of them will not cash flow with their current asking price or close (+/- 15%) to their current asking price. I would suggest you first focus on location, underwrite/review/run the numbers on 25-50 properties and you'll start to see patterns of the type of homes that work and don't work. Generally, I would say that most people aim for $200-$300 cash flow per month on SFR or 6-10% Cash on Cash return. Good Luck!

@Tyler Ligan - The renovation process (estimating, construction management, etc...) is the key to the BRRRR process in my opinion. Get a solid foundation in that by reading, but also by walking through existing projects from other investors and contractors will certainly help! Bigger Pockets also has some great books on BRRRR investing (by David Greene) as well as Estimating Rehab Costs (by J. Scott) Good Luck!

Buy, Rehab, Rent, Refinance, Repeat | BRRRR Real Estate Strategy Book – BiggerPockets Bookstore
The Book on Estimating Rehab Costs | Fix-and-Flip Investing Book – BiggerPockets Bookstore

Good Luck! 

@James Bolt - When you say "move the mortgages up to $80,700" who is your lender? Is the lender willing to offer a mortgage for a higher amount than the purchase of the home? 

@Robert Johnson - To me, replacing old sewer lines and infrastructure components (roof, electrical, plumbing, etc..) are the components that don't add a ton of value, but could certainly kill the cash flow / reserves on a deal. As a result, those are replaced based on lack of functionality, rather than style.  Kitchens Baths, and upgraded lighting and fixtures seems to have the "Wow" factor that both appraisers and tenants pick up on and value. 

@Farrah Abdelaal - When you say an home is older, but renovated I think a lot of it depends on how extension the renovation was. For example, was the entire house re-wired and re-plumbed? Including the main stack pipe/sewer line? How about the HVAC and ductwork system? If all those infrastructure components are new then I would be more inclined to look at a renovated home that is very old. If not all of those items were updated, I'd be hesitant.... Good Luck!

Vivian - I have a flip about to finish up in 19145 as well. Happy to talk through a little strategy if you'd like. Not sure I have "the answer", but happy to share what I know!