All Forum Posts by: Jack Schwartz

Hi Matthew, 

I wanted to discuss the classification of a property as modular and its impact on value. I am currently in the process of purchasing a property in Upstate NY that was originally listed as a Mobil home. However, the owner has made professional additions such as a 500+ square feet family room and a 500 square feet deck, which greatly enhance its value. I am considering refinancing the property, but I am unsure if a bank will still classify it as a mobile home. With these additional rooms, does the property now qualify as a regular home? It certainly gives the appearance of a spacious and luxurious living space.

Thanks, Jack

By following the BRRRR method, you'll end up owning free real estate. It's a powerful strategy that allows you to build your real estate portfolio without using any of your own money. As long as the rental income covers your rehab and financing costs, you're good to go! Even if the rental income isn't bringing you any profits right away, the appreciation of the property over time can make it a worthwhile investment. Keep at it, and you'll soon be the proud owner of valuable properties!

By following the BRRRR method, you'll end up owning free real estate. It's a powerful strategy that allows you to build your real estate portfolio without using any of your own money. As long as the rental income covers your rehab and financing costs, you're good to go! Even if the rental income isn't bringing you any profits right away, the appreciation of the property over time can make it a worthwhile investment. Keep at it, and you'll soon be the proud owner of valuable properties!

Offering owner financing can expedite the sale of your property. But sellers typically prefer not to retain the buyer's contact information to facilitate a clean transition to the next transaction and avoid potential financial entanglements, 

It's essential for buyers to recognize that the original owner could reclaim ownership if the property was purchased from a title sale auction, with specific state regulations, such as a 2-year reclamation period in New York, Despite these factors, owner financing can benefit buyers by fostering a sense of connection with the seller.

Quote from @Leo R.:

@Josh Mac keep in mind that Zillow can be completely unaware of factors that affect value...and some of these factors might not be apparent until you see the property in-person.

For instance, maybe someone added a bathroom to the house, and now it's a 3/3, but Zillow thinks it's a 3/2.  ...or maybe the house is right next to a busy road with tons of traffic noise, but the Zestimate is based on nearby houses that are on quieter residential streets ...or the main floor beam under the house is rotted out--Zillow would never know that...

In short, there are a ton of factors that can affect a property's value that Zillow might completely miss.

The Zestimate can be reasonably accurate in showing a ballpark value...but, I wouldn't make life and death investing decisions based on a Zestimate...

Leo's right. Zillow's estimate may miss important factors. Unique features boost value, but issues like pests or noise may not be accounted for. While Zillow is a good start, it's not everything. Feedback from friends and neighbors can also help understand market value.

Hi Liam, 

BRRRR is designed to help you expand your real estate portfolio rather than simply cashing out a small profit that could hinder your growth. While opting for a smaller loan and retaining more capital in the deal can enhance your cash flow by reducing mortgage payments, it may also impede your ability to quickly expand your portfolio.

Good luck on your journey, 

Hi Paul, 
Imagine turning that fixed-up basement into a cozy living space that adds value to your home – sounds tempting, but is it legal? You might want to check out the local Zone Code first. I love the idea of adding a touch of luxury to make it feel like a high-end haven, like a fancy Jacuzzi bath, just to name one. Just something to ponder on, 

G.L. Jacob

"Challenging rule" meaning to say that It's important to be aware of the rules around property ownership, as the original owner may still have a chance to reclaim the property within a specific timeframe. It's crucial for sellers to fully disclose how they acquired the property to avoid any misunderstandings. Each state has different rules, with New York State allowing a 2-year period for the original owner to reclaim their property.

Kevin,

Your clarification is fantastic! I just wanted to add that after you recover all the money to start over, during the final "R" you are also generating some income from the third "R". Even though this income may only cover home expenses, you are still achieving success. You are gradually building a wonderful real estate portfolio.

Warm regards, Jacob

Quote from @Bruce Lynn:

You might check a couple of things. Was the previous owner an LLC? If so, is the LLC still in existence? If not, maybe they can't challenge the sale?

Is the former owner still alive, any probate, any heirs? If none and you can prove it to title, maybe they will issue before the two years.

Hello Bruce,
Thank you so much for sharing your valuable experience! I completely agree with you - sometimes taking the quickest and simplest route is the best way to go, unless you're up for the long haul of the Quit claim or Title Certification process. Your insight is truly appreciated!

Warm regards, [Your Name]