All Forum Posts by: Ishviyan D.

voepel property management. Great experience. 

@Kirsten Braddock careful with taking out that business credit...I’d be sure you have a comfortable buffer, whether it be cash flow from properties or pure cash in the bank, in case paying that borrowed money back runs into roadbumps. Beware of “scraping the bottom of the barrel”...always have a margin of safety since things rarely happen in a straight line as expected.

echo what @John Leavelle said above. The numbers don't support a solid Brrrr. At 75% LTV, you will have $25k stuck in the deal after you refinance, which is a decent amount.

@John Geldert congratulations. Question- hypothetically speaking, if your second appraisal came in worst than the first, is your lender obligated to use it or do they have discretion over whether they use the first vs the second? Thanks. 

@Bob Okenwa@Mike McCarthy Thank you for your responses

When purchasing a deal, does it make more sense to do a home inspection prior to or after the home has been rehabbed (I’m referring to an inspection done by an actual home inspector, not one done by a general contractor). I could see an argument for both. If an inspection is done before, the rehab can address all the issues found, particularly the more serious items like foundations, mould and termites. If done after the rehab, it provides an opportunity to address residual issues prior to putting the property on the market, although the downside is that it could mean tearing out newly installed flooring, cabinets, and appliances to address serious problems like mould underneath the subfloor that we’re not initially identified.

Any thoughts?

Thank you

My question is regarding conducting standard cash-out refinances on properties. Per my understanding, the HUD / settlement statement needs to document not just the property purchase funds, but the escrowed rehab funds as well. What happens in the scenario where a proper walkthrough of a property to arrive at a rehab estimate cannot be made in time for closing on the property purchase? Does it adversely affect my ability to do a cash out refinance if I do not include the rehab funds on the HUD?

 Is the commercial loan you used for a single family home or a multifamily? Curious whether commercial lenders would work with a single home. I know they'd consider blanket commercial loans covering multiple homes. 

Depends on how you wish to structure the deal. This is more a question of deal structuring than it is specifically about how BRRRR works. Investor B can choose to borrow 100% of all funds (purchase and repair) or only enough for either the purchase or repair. Either way can be a BRRR deal

My insurance agent (state farm) mentioned they can't provide insurance on a home that is in need of rehab in order to get it rent-ready. Does anyone have suggestions on insurance companies that would provide insurance in such situations? Thanks