All Forum Posts by: Jack Moran

I've been looking for some bargain properties that would fit a BRRRR. I haven't found much, but have noticed a handful of properties already in pretty good condition in my market that would seem to cash flow.

I realize that I won't be able to add much value, but do I need to if it will cash flow as it is?

Example: 

   Market Price 135,000 3br 1.25bath 1500sf with nice large level yard.  

PITI = $850/mo with 20% down

  Or if I financed 100% it would be just under 1100/mo.

  This market price fits with the neighborhood and surrounding areas, so there's not likely going to be appreciation.

  Its a fairly rural area and rental inventory in this market is low,..it should rent for 1400+/mo.

Any reason to not just buy it and rent it as is?  What's the downside?,...what am I missing?

Has anyone used this approach?  

Hi Michael,

My advice, save.   

If you have ANY debt aside from your mortgage, pay it off IMMEDIATELY!  

Sounds like you don't have kids yet, if you don't, dump the SFR and buy a multi-fam, house hack it(google Brandon Turner House Hack if you don't know what that is);

 repeat, repeat, repeat.   

Spend 3-5 years doing this, then you will be free and will have enough to buy/live whereever you want.   

Good Luck!

Jack

Thanks Damian, I grew up in a house with steam radiators, I remember the "refill with water" procedure.   Good that you got the tennant to deal with it.   Is your tennant doing just that or do you have them do general maintenance too?   Shovel snow and do grass ant little stuff like the boiler for a discount?   I've thought about that approach instead of paying someone else, just wondering how that's working for you if you've been using it.

Anyone in Central Mass interested in teaming up and analyzing some property together?

Keep your 5000 in the bank.  Read the Richest Man in Babylon and do what it says.  

Get a job working for a property management company.  Doing anything.   Just learn, get to know the decision makers and how the work gets done.      

In 2 years you'll know more than everyone you've already talked to.  In 10 you'll be richer than them.  

Good Luck 

Thanks John.  I'm in New England where oil heat is the go to.   

I think forced hot water baseboards or forced hot air are the main configuraions.

I'm looking at a home that needs renovation,...it has steam radiators.  New construction would never be done with a steam radiator system today, I'm just trying to sort out if it just makes sense to assume that replacing them will be necessary as part of the initial renovation or if the steam radiator systems can still be considered a viable way to heat your home today?

Renovating a house for rent, would you keep or replace the steam radiators?   If you're replacing them, what would you replace them with?   

Looking at a 40,000 2fam property and I have just enough cash.  

If I buy it, can I immediately get a $28,000 (a 70% LTV cash out) before renovation and use the 28,000 to do renovations? I know the typical BRRRR process is to wait until after the renovation and do it then, but if I own it outright, is a bank going to be willing to loan me the 70%?

After renovation, the property would be worth say,....100,000. I would then be able to do another 70% LTV against the newly renovated $100,000 property ($70,000, pay off the $28,000 first loan leaving me with $42,000).

I should be able to rent each for about $1,000/month after renovation.   

I figure if the renovation runs over the 28,000, I could concentrate on one of the two units and get one rented, use the rent from the first finished unit to fund the renovation of the second.   

It all seems to hinge on the possibility of getting a 70% LTV $28,000 before renovation. So does anyone know how feasible, likely or possible that is? My credit isn't perfect, but not awful. I've just never heard it mentioned in any of the examples I've read or heard about.

Thanks in advance for any advice.  

13 years ago,...wow,....ever get a resolution, I'm looking at a property with a similar issue.   Would apprecaite hearing about your experience.

Wish I was in Illinois,...(-: