All Forum Posts by: Hunter L.

@Jen Khan on the buy and hold side - PG County, MD

It may sound simple, but as a starting point just run the numbers for both deals and compare the projected Return On Investment (ROI). That metric was designed to compare investments and will start pointing you in the right direction.

@Simon Burton welcome to BP!

Let me preface this by saying I've never refinanced an owner-occupied single family home.

I was considering putting an offer in on a condo being at around $200K. I was looking to use a 3% down loan to get into the property and fix it up. These were what the numbers looked like:

Purchase $200K

Rehab $14K (cosmetic)

ARV $270K

In discussions with my lender about how to get rid of the PMI as quickly as possible, I asked him about refinancing after I had restored the property to neighborhood standards and its value had risen to the level of the comps in the neighborhood. He said that it was not likely that the appraiser would consider the renovations to have much value, as they were only cosmetic, even though the sales comps in the neighborhood on similar units (same bed/bath, sq ft) supported the $270K ARV.

That surprised me as I thought the appraiser would just be using the sales comps in the neighborhood to determine the fair market value, not my acquisition costs and the cost of my renovations. Has anyone run across this situation?

@Courtney M. I'm in the middle of my first BRRR right now and we used private money. We had the money lined up and ready to go for when we found a deal, so all we needed to do was call our lender and have him wire the cash once we found the deal. There were multiple offers and the property went within days, so having cash, a quick close and no contingencies most likely helped.

Just gonna bump this post. Still looking for Maryland contractors who work with investors.

Looking for a good contractor in MD to do a rehab in District Heights. Does anyone have a recommendation?

I'm currently looking at a deal on a SFH that has a ridiculously steep driveway grade.

We tested the grade using a Jeep Grand Cherokee and the car got lifted up off it's back wheel trying to turn into the driveway. We were planning to fix and flip the property, but the cost to flatten the driveway out and add a retaining wall seems to kill the deal. Also, we believe it will be a severe deterrent to the end buyer if we don't fix it.

Does anyone have experience with flattening out driveways? What type of cost should you expect and are there any creative ways to deal with this or is it just a deal killer?

Do you work in those areas or know of any investor-friendly brokers/agents who do?

(Not sure why the tag in your name didn't work Russell Brazil )