All Forum Posts by: Joshua Heath

Greetings All!

It’s been a long time since I’ve been on the forums. Seeking your guidance/wisdom. A little about me: 

U.S. Army vet. Recently moved from Lynchburg, VA to Parrish Florida in December 2020. 5-yr goals for REI can be seen on my profile. Almost 100% of my REI will be done out of state due to current FL prices.

Regarding our home, we purchased it at $275k with a 5% dp due to the first homebuyer FHA loan (I believe our interest rate was at 2.9%). The market has since sky rocketed in our local area, with comps in the area for a 3/2, ~1800 sf being between $340-375k with barely any updates/upgrades. I've been told by several companies that I can:

1) ReFI with the VA and get 90/10 value, which ends up with me getting a lot of $$$. Pro: lots of cash to work with for offers/acquisition/rehabs/etc. Con: Once it's used, it's gone. I also don't know if funds get taxed due to the refi. Need help there.

2) ReFI for a better rate and then get a HELOC. Pro: I now have all this equity to use for future projects and can pay it back like a credit card. Con: 80/20 equity split and I'm unsure of what needs to happen for next steps.
  
I have a lot of head knowledge but I’m drawing blanks as to what I should do. Hope I didn’t scare/bore anyone to death. Genuinely excited and willing to learn on ways to improve my approach. Looking forward to what you’ll provide.

Respectfully,

Josh H.

Greetings BP Family!

My name is Josh and I will be investing in the Lynchburg, VA market (central VA). My focus is buy-and-hold for SFH/Du/Tri/Quadplexes. I have all that a great REI team needs (PM, investment-minded REA, GC's) except for the capital to get started. I am seeking a partner to help get my REI career off the ground. My hope is that the partnership would continue in the future past the first deal.

What I am offering in return for your services is as follows:

- 50% equity of the deal

- Minimum of $150/door in passive CF to you

As it stands, I have 4-6 deals (SFH/MFH) ranging from $65,000 to $149,000 (retail asking) that fit my parameters (>$150/door in true CF; >10% CoCROI).

I greatly appreciate and respect your time in advance.

Respectfully,

Josh H.

P.S. Please message me directly if you would like to see the properties I am considering. My aim is to be a blessing, not a burden.

Greetings Karthikeyan!

My name is Josh. I’m a maintenance technician for an AC company in southwest Florida. Hope this is of some help to you!

1. What should be minimum life expectancy for a HVAC system when the property is called as a turnkey property?

ANSWER: It all really depends on where the property is located. Perfect world, an HVAC system will last/live longer in the north (VA, PA, MD, etc) then say in the south (AL, SC, GA, FL). For example, a brand new top tier system (Trane/York) is only expected to last between 8-12 years in Florida where it might last almost 20-30 years in Michigan.

2. Average end to end cost to replace a HVAC in states like AL?

ANSWER: Do you want quality or something to get by? Do you want a good Ford or a cheap Benz? On average, for a middle of the road system, you’re looking at around $7-10k. This is a MASSIVE generalization because price will fluctuate based on needs of the home, style of the HVAC (split, package, wall package, mini-split), filtration in the home, etc. If you have an AC company that you trust and they do work on your home in/near your market, have them either give you a quote or possibly install it for you. This way you already have a company that you trust working on your behalf.

3. Can HVAC specialist certify that this HVAC system can run for additional X years?

ANSWER: Yes and no. A good AC tech will tell you what you can do to get as much life out of a system as possible. The downside is that might mean a few years OR a few months depending on the age, condition, and history of the system. Bottom line? If you’re investing in the south, count yourself lucky that you were able to get 10 years out of it.

4. If seller is not ready to fix, how much seller credit should we negotiate?

ANSWER: It depends. It’s a negotiable term as is everything else. If you can get them to cover half, if not a little bit more, then I’d count that as a win.

Hope this is of help.

Respectfully,

Josh H.

@Adam Scuipac that area has traditionally been a finance/banking area. It is typically where old money has been in Charlotte with it being close to Queen University.

I'm not as familiar with the pulse of that region as I am of say the University/Matthews area, where I lived from 2000-2015. Regarding @Kaiser J.'s points on market fluctuations, he is spot on. I overstepped in my analysis of the situation.

At the end of the day, everyone's risk delta will be different. So, if you don't feel comfortable with the projected market flux or the potential issues brought up by both @Kaiser J. and @William Walker, perhaps don't move forward with the deal and save the funding for elsewhere in Charlotte's vast market.

Adam,

My encouragement to you is to purchase and keep the property. Being a Queen city native myself, Charlotte is and will keep on being a city that grows and creates jobs in various markets (corporate business, RE, banking, athletics, etc.) for at least another 10 years. With this in mind, regardless of how much the market contracts this year, as you said you have a guaranteed tenant who would be paying above market asking price for occupancy in the townhome for 12 months. 

You have a tenant for at least a year so now you just need to look for other tenant options between now and end of lease. It is helpful to be skeptical of the future, especially when money is on the line. I'd just recommend grabbing the deal, let the market (stock, RE, etc.) do its thing, and whatever you DO make in CF set it aside. This way you have a gaurunteed "rainy day" fund IF the markets don't return to normal or one that is helpful for you in the short term. However, equity is equity.

With COVID-19, as with any disaster, there will be new normals set in place. Better to have one in hand then two in the bush #2008recession.

Sorry the rant. Just sharing thoughts! Hope you and yours are doing well in this strange season.

-Josh-

If you follow any of his social media outlets, the video in question was to prove a point shared by Kevin Hart. Bad news travels faster than any other. Uncle G is a smart cookie so I'd recommend, like Scott Trench and Bill F. states, diving deeper into the content and the releasing agent before jumping the gun.