All Forum Posts by: Jennifer Schelkopf

Dustin,

Thanks for the note.  The scenario I encountered may be a little bit different.

Purchase $145k

Repair cost $5k

Appraises at 170k.

Bank policy is 90% of purchase price, plus improvements or 85% appraisal, whichever is less. In this scenario, the loan amount is $135k (90% of purchase price, plus improvements). If done with a simple 85 LTV, it essential cashes out (what I wanted to do). In this case, I'm left with $10k of my own money stuck in the deal.

Furthermore, they're saying they ideally want to see an investor own the property for 2 years to ensure cash flow.  

I like this bank, and they've been great on non-BRRRR deals. It just seems that either I don't know how to BRRRR properly (not unlikely), or they are hesitant to do these kinds of deals.

Regarding my repairs, I targeted some low cost, high impact areas to affect appraisal pennies to the dollar.  

Perhaps I'm missing something, and if so, shame on me. It's still a nice cash flowing property, but I didn't quite get to the finish line regarding BRRRR.

Does that make sense.

Best,

Jamie

Killer question, @Jennifer Schelkopf!  I hopped on this thread to recommend that you think through the who and why of short-term travel through TXAR and I was delighted to find that you're already thinking that way!

Have you stayed in any STRs in the area? 

@Jennifer Rullmann

Or maybe something you email them before they arrive.

This is usually applicable if the property owners have smart lockbox technology. You need less coordination with self showing. It would be easier to show the property specially we have pandemic going on. And prospective renters/buyers can tour the property as soon as they want. But it's more appropriate for vacant rentals or vacant properties. Since prospects may have questions about the property it can be toughed for them to get answers on their own, so better prepare sort of a flyer. But there is always a risk that the property might get damaged without the supervision. 

All the best!

@Jennifer Rullmann I currently am just doing as much reading and listening as I can at the moment as I am still in school. Therefore, I have not made my first investment yet. Nevertheless, I would like to believe based on the number of books I’ve read and podcasts I’ve listened to, that this would be a solid idea and something definitely worth pursuing.