All Forum Posts by: Jason Seward

I have offered on a potential “brrrr” single family home deal. All the #’s resulted in a $72k offer. House needs $30k rehab. Seller informed me after me making offer that he would accept BUT he owes $105k. He is in a tight spot because it needs substantial rehab to get it rent ready. He has no cash to do this. Nobody will pay what he owes on it in as is condition. I asked him if he would be open to looking at some creative options to get this done and he is. Now I’m looking for any creative strategy based on this info that could work. Fire away! Thanks

I am looking to buy a Vacation rental cottage in OBX N.C. which I plan to move into as my primary when I retire several years from now. I have been approved by a lender and have begun my search for homes. I had an idea pop in my head yesterday that I am not sure would work or not, but wanted to get your guys opinions/expertise. I currently have 2 single family flip projects under rehab and both are on the same track to be completed in about a month. Normally, id flip, pay the taxes on the gains and move on, but with the timing I have thought of a possible 1031 exchange into an OBX home. Here is what I'm thinking:

- Both flip houses would sell for a combined $340,000 with roughly $80K of that being gains. After realtor commission it would be roughly $320K to exchange into new property. 

- The OBX home would be roughly $400K(I'll use that for easy math). I would exchange $320K and use $80K from my HELOC to purchase.

- Then I would cash out refi the OBX home at 80% LTV, receiving $320,000 from the cash out tax free.

What am I missing in the above scenario? Is how I described it possible and within the 1031 guidelines? This seems to make sense to me as it is away to still flip the 2 properties, avoid the taxes on the gains by exchanging them into the new property and then cash that property out with a new mortgage which essentially gets the gains back to me tax free. I've never done a 1031, so I'm not sure if any of this is possible, but would love any advice you guys can offer up. Thanks

Hello BP folks! I have had my toes dipped in real estate for several years now, but never with a focus on growing a large portfolio until recently. I've bought, rented, sold, flipped, etc all around my home town since I left college but only really doing one house every other year or so over the past several years. This year, I have become obsessed with educating myself as much as I can with the intent to grow much more aggressively. I did a "BRRRR" in early 2019 that worked out great. After 6 months I cashed out into a conventional mortgage. In September I purchased the next property. This one needed a bit more rehab, but I just wrapped up and have a tenant moving in January 1st. The plan is to refi into another conventional loan and then move on to the next. However, with the 6 month seasoning, It will be March before I can cash out. Initially, I was perfectly fine with this pace of buying one every 6 months and slowly building a nice portfolio of properties. However, as I get a taste of this "BRRRR" strategy and I gain more experience, I really want to explore other options for lending that will allow me to move a bit more aggressively. I have connected with a few hard money lenders that can be options to buy and rehab while my cash is tied up in other deals, but I need to connect with a long term lending option outside of conventional loans that will allow me to cash out refi sooner than 6 months. Does anyone have any tips, advice, guidance, etc? I know some smaller banks will do portfolio lending and I plan to reach out to several soon. Do any of you have recommendations for banks in the Central/Tidewater VA areas that do this? What are typical terms I can expect on these?(interest, LTV, seasoning period, etc.) Any advice would be much appreciated.

Thank you all! This has been very helpful. Every other house ive owned had old hardwood that we were able to refinish so this is my first experience with an entire house down to the subfloor. Based on the replies, Vinyl plank it shall be!

Good Stuff! Roughly how much is the life proof product per sq ft? Thanks

I appreciate the response. In looking at the Vinyl Plank, I see a wide range of options and cost. As low as .70 per sq ft for 1.5mm thickness and as high as $2.50 per sq ft for the 4mm+ thickness. Any tips on this? Obviously, I would think thicker is better, but any experience with specific thickness, brands, etc.? Thanks!

Im shopping flooring options for new rental. 1300 sqft and Im thinking of laminate wood for whole house(including kitchen and baths) Any advice/recommendations for options that work well for whole home coverage would be appreciated. Thanks

I am getting ready to close on my second "brrrr" single family dwelling, using my HELOC to fund it all. In my effort to find more deal opportunities, as soon as I got the most recent one under contract, I have had a few more promising deal opportunities pop up. My plan has been to take it one BRRRR at a time using my cash and HELOC. However, I have had a really promising flip opportunity pop up today. In the area it is located, it wouldn't make for a great rental, but its a potential great flip. My only option will be finding a different source for funding purchase and rehab. I have no experience with hard money or private lending. Any advice, recommendations, etc?

Thanks @Jaysen Medhurst. I appreciate the feedback and need all I can get as I ease my way into this. This is an off market property. The realtor I work with brought it to my attention and said the seller needs to sell quickly, "hoping" to get $200K for it. Realtor is estimating $10K in cosmetic rehab and said comps are $250K range. I have yet to step foot in the home so there are many assumptions and unknowns at this point. I agree, I went low on a few projections and thanks for pointing that out. Fortunately, I do have a lender who will do loan for 20% down and 4.7% so I'm confident on those #'s. I will not likely pursue this deal, but as I move forward, I would love as much feed back and different perspective as I can get on the #'s. Mainly so I can better educate myself on how to analyze these calculations and make my decisions accordingly. Thanks again for the feedback!

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