All Forum Posts by: Jeremy Elcox

I would only caution about fees with the VA loan, I got smacked pretty good. Just beware and ask lots of questions on that part of it. I agree with the other comments and also caution to be VERY cautious on numbers. ALWAYS er' on the nervous side with all the math. Aka...if you think 1200 per unit...plan for 1150. This is from real life issues Ive had getting units going. 25$ a month discount got a 3 bed rented vs waiting months over a few bucks. Don't expect to make any actual money for 5 years is also a good thought pattern, just so you don't get disappointed. Best of luck. J

Matthew M. good afternoon. In the most polite phrasing, you need to read a lot more landlord/tenant laws in your state before you think about renting to client. These are very simple things you should be aware of to avoid huge lawsuits. I only say this because I learned the hard way, was very simple so I got lucky. It had to do with GFI outlets near water. Easy fix but could have cost me everything. BP has all the info you need and you can also check your state's website .gov. Best of luck and let us know how it went. Jeremy

Adam Juodis, I went with Smart-core Ultra and it covers all kinds of imperfections. Yes it's a bit pricy but it worked very well for slightly messy subfloor. It's rather thick so you "might" have to cut in the door frames but that took 20 seconds with a saw. The pro-core might work for you if the tile is solid. 2.50 a sq ft and nice backing. Best of luck and lets see the final pics. Jeremy

Kevin Wilson, Congrats on your 1st deal. Glad to see someone doing the deed on here. I will say, NEVER...NEVER ever trust a word your contractor says. Check everything, then recheck it. DEMAND receipts for every item and insurance and license. I know this is basic but I trusted a "friend" and got really screwed. Once they finish, take the $400 hit and pay the home inspector to check all the work before final payment. This seems extreme but it's pennies once you find out the AC system is leaking all over and ruining stuff. 
    Spend the time to do things right and take care of your clients, they will most times save your *** if you treat them well and SCREEN well. Best of luck and keep us updated. Jeremy

Xavier Nguyen, Hello and Welcome to BP. I got started here in VA due to being deployed and I wanted to use my bank account for something better than 1.3% interest. My gramps had apartments so that is what got me interested and he actually told me NOOO...do not do real estate..lol. I am only on my 2nd house due to DC prices here in Stafford but looking for #3 at the moment. If you want to scale up you will probably have to get a few people together for a large capital pool. To learn the markets you just have to get out there and put your head down and READ and READ and drive and look at prices. Network is POWER, but only if you do your own research. NEVER trust...ALWAYS verify and do your own checks. I learned the hard way on my 1st rental and it cost me $8,000. Sorry for blabbing just there is so many scary things to be aware of. So many posts are all fantasy on here so you have to be cautious. Jeremy

Investment Info:

Single-family residence fix & flip investment in Fredericksbrg.

Purchase price: $189,000
Cash invested: $100

Purchased as a live in flip to use my VA benefits. My apartment was 1500 a month so I am saving a ton of money while updating this property slowly. Honestly it was a small gamble as Amazon just moved in 40 miles north. I did pay almost market at it is 7 minutes from my job so trying to save a couple grand did not seem prudent for quality of life in DC traffic.

What made you interested in investing in this type of deal?

Future growth due to fast lanes coming to Fredericksburg and proximity to Mary Washington college. Amazon HQ 2 is also moving in 40 miles north so prices should be coming up according to multiple investors in chat with. I also don't mind doing update on my own instead of Xbox games.

How did you find this deal and how did you negotiate it?

Honestly on the MLS with a realtor friend of mine. I was able to knock 5K of asking due to wet crawl space and minor roof damage

How did you finance this deal?

100% VA finance - Caution...the fee is roughly 4,000 dollars.

How did you add value to the deal?

New landscaping and updated bathroom and redoing kitchen currently.

What was the outcome?

Waiting for 1 year mark to rent or sell depending on market.

Lessons learned? Challenges?

SUPER inspect the home before closing. Take a few hours and be super picky. I found many little things once moved in I missed when in a rush due to missing work. In a hot market around DC you don't have much time to second guess so you may have to take a risk or miss out on deals. This property has already gone up 27,000$ in 6 months so I have been blessed.

Sorry for the HUGE text..haha. I have no idea what happened. #facepalm

Patti Robertson , great info and thank you for posting that. I would also agree fixing the simple little stuff can bring good will and also an opportunity to inspect your asset and ask questions about anything else that may need fixing. I believe in my short 3 years that getting input from the tenant is huge. When one of my A/C units was dripping down the wall the texted that day. If they had not let me know instantly, the damage could have been very severe. Rentals are a people business and NOT a house business. We provide value and in return we hope our clients don't ruin our assets. Best of luck with everything.

Nice work Brandon...I'm up in Stafford...and it's PRICY. Keep on doing the good work in Richmond, I would love to buy some stuff down there in the next year. My rental is in Newport news so a bit of a drive. How is the multifamily market around you? Keep the updates coming. Jeremy

@Matt Hudson, Matt...I am totally with Jay here. Take your liquid capital and either expand your businesses or buy a new one. I learned the hard way on now my 2nd house that this BRRR stuff is REALLY slow and the numbers they love to brag are almost impossible in the DC market. Go for an actual biz that makes it's own way or go BIG and get into multi with that 250k. Congrats and best of luck. Jeremy