All Forum Posts by: Iman Yu

@Albert Bui I agree with you on the strategy. I like to look at my prospects from multiple perspective so I can calculate my profit/cost upfront depending on my exit strategy options. I don't want to just know one thing and one thing only. I would like to grow as an investor that understand all the tools in my tool box so I can apply them on the deal as I see fit.

I also agree on what you said about RV ration/1% rule. I've heard wholesalers telling me that if I am to buy and hold & I should be able to pay for a higher purchase price upfront. I don't agree with that. That's not a good enough of a deal for me. 

I am willing to cash flow less in my BRRRR deals but they must meet 1% rul for me and I aim for a better CoC return in BRRRR deals.

Thanks for sharing!

@Trey Watson you brought many valid points. you have answered most of the questions I had on this and you have confirmed most of the major criteria I've been gathering by doing research as well. I am glad we are on the same page. 

Those popular pockets of Katy, Spring, Missouri City are hot so they go fast! SFH in those areas priced at 80k with less than 20k of rehab is a popular play field for entry level buy & hold/BRRR investors in the Houston area.

Thanks for sharing your insight on this. I am hoping to apply the knowledge I learned quickly so I can catch my next deal soon!

To my fellow investor friends on BP, what are your thoughts about what area/zip codes are good for BRRR strategy in Houston?

I've been running sold/rental comps, looking at demographic data and flood zones to identify what area is good for BRRR and what isn't. The goal is, when I get a deal, I want to be able to differentiate whether it's a deal fit for a flip for BRRR.

I say that because if you have the skill set to determine that early on, then you will be able to calculate your  MPP more accurately (maximum purchase price) and you would be able to budget for the type of rehabd you need from the getgo.

So what is everyone's thoughts on what area in Houston is good/not good for BRRR?

If you are interested in BRRRR and if you haven't listened to BP podcast # 171, then you should do so ASAP and you will see why I am asking this question.

@Jerry Ta done! thanks :-)

All, 

Lately, I've been looking into deals in Houston that I can use BRRRR strategy on.

Has anyone done this and what's your experience on it?

I've only done a straight forward buy & hold rental property with conventionally financing so this is a new challenge for me. 

I think my biggest issue is not knowing how to refi and get 75% of appraised value back as cash?!

Does that ever work for anyone? From what I read, it looks like people are either having to 

1) rent it out first and wait for 6 months to refi (this is to qualify for the required minimum seasoning period for most lenders) 

2) refi right after rehabbing the property but only get 75% of purchase price + rehab cost back

What's everyone's input on this subject?

@Rick H. thanks for your insight. The house has very little to 0 equity. The story i got from the wholesaler was 'seller did a refi and took the equity.'

House has great ARV for resell but doesn't cash flow in my opinion because of the taxes. Property tax is about 5300 a year and monthly rent it about 1450.

no deal?

@Kerry Baird

Thanks for writing back to me on this. I appreciate your detailed response. That's very helpful to me.

As you can tell, I am new to the 'subject-to' deals. I don't have a deal yet. I found this deal on a wholesaler site: http://www.myhousedeals.com/

I liked this deal because the house has solid value, but it has little to no equity in it.  (105k mortgage, 3.75% interest, repair is 10k and arv is about 160k). 

The wholesaler said "The title is clean and clear, just need a buyer. The liens are part of some down payment assistance that will be payed off and resolved prior to closing"

The seller owes about 20k of taxes. That's what I think the minimum acceptable price is.

However, the seller is asking for 55k and there is a tenant in it that pays 1175 right now so I just need some advice on how to negotiate for this deal and how to make profit on it.

any thoughts?

I just found a great subject-to deal and I would like to ask someone who has done a subject-to in the past to help me out on this, please.

I just came across a subject-to deal that I want to make an offer on but I am not sure:

1) how to negotiate

2) what my exit strategies are

3) how to make money on it

4) what due diligence I need to do

Detail on the house:

3.75% interest rate, $964 monthly payment (Includes taxes and insurance), 30 year note (has about 25 years left), mortgage balance is 105k.

current rent is 1175 but market rent is 1500.

Thanks!

Iman

@Brit Foshee yes that makes sense. thanks for helping a newbie out :-)

@Alex Franks those are very good points. it's definitely critical to run thorough deal analysis. 

@Jacob SampsonThanks for your honest feedback. What you said make a lot of sense to me. Thanks for setting me straight!