All Forum Posts by: Jeremy England

400 after debt service.  Taxes and ins paid annually, and capex and maint is deferred due to rehab.  So most consistent measire for me is after debt service cash.  

This is for sfh properies in rhe 90-120 arv

Closing costs. Might be biggest expnse for 100-120k flips

Amber, 

Remember to account for wetlands in developing the property.  You can have a 100 acr property and .1 acres of it might be buildable.  

But regarding your question.  You'll need two sewere hookups and two electrical panels, two water meters.  Tiny homes are done here, one was just placed on the waterfront here with an existing home on the same lot several months ago.  So there is obviously a method to get them permitted.

REgarding the zoning of  property, you'll need to either petition for a variance or   get it rezoned (not certain how thats done)

I recommend you download and review the Escambia county land development code and perhaps speak with officials at the building department.  

So i've bought and sold several homes in Florida but never refinanced one.  Lender is telling me survey is required.  I'm verifying that's true.  If I don't have to pay for a survey, I don't really want to.  

What say you?  Thanks

When I FIRST started i was a builder and did custom builds then got financed with zero money down on spec homes.  Then the 2008 crash happened and I lost a ton of  money, but paid all my debts then took a job out of state.

Recently I got back into it with money I made on the sale of my last personal residence. About 100k

This money I consider house  money because its not my retirement, not my kids college, not my home equity.  Just cash made from moving.  

Seems you were going great til the appraisal.  I would say buy in areas that have more reliable comparables so your appraisal value is more predictable.  Elsewise, I think you have a solid plan.

Overall still success because like you said, you don't have 25% plus closing costs in the deal.  But you'll run out of money after a few projects if you scale.  

The cleanest way imo is to borrow the funds from that persons SDIRA (can't be family btw)  

No equity split, no partnership, just a simple loan.  

#1, this keeps the lender clean in that they are not tap dancing around any requirement they do no work on the project or they aren't writing personal checks in lieu of SDIRA checks.  

#2 it keeps the transaction clean in there is no confusion about what each party is getting or risking.  

I've been researching this alot lately and a business associate is actually opening an accout with one of the custodians on BP and they plan on lending to me for deals.  

 The loan is actually 75k with payments of 475:mo. (No escrowing of taxes and ins)

Im working it out with a credit union for better terms.  They had a survey fee on there, indont think one is required, escrowing of taxes and insurance.  So the 8k figure will realistically be as low as 6000.  Ill probably just pay the difference in the mtg and personal loan prior to closing so that will be another 3k.  Probably go to closing paying 2500.  

Im fine with how it turned out. Next one however i hope to spend even less of my own money.   If you spend 5-7k each house, hopefully by the 3rd home it is self sustaining.  Meaning the profits from the annual rents are all you need in terms of money for the brrrr strategy

 Nothing is “wrong” with the deal per say.  Just putting my experiences out there with the brrrr strategy.  Im just posting my experiences so others can offer feedback and perhaps learn some things.  

I swear. Im hoing back in the construction business when i retire. Honest contractors are in short supply.