All Forum Posts by: John Bradley

@Ryan Cooley

Hey Ryan! Im a lender here in the valley and can help answer any questions you have. Congrats on getting the ball rolling on your BRRRR! Have you already identified a property yet? What do the numbers look like?

@Sam Morgan heck yeah man! Keep building value to your duplex, refi to conventional once you think it could appraise for 80-85% LTV or so and then onto the next one! 👍

It might be worth looking into other multifamilies and seeing what value adds their doing so that the appraisal comes in higher right out of the gate.

@Shiloh Lundahl Hey Shiloh! I went to one of your meet ups prior to covid, it's a pleasure to see ya again!

This one's going to be a buy and hold. After the project is done I'll cash out to pay off my partner since he'll probably be moving out of state and isn't interested in keeping it himself.

PP- 266k

Reno- 30k

Arv is showing 360k-370k so it's barely squeezing the cash out refi 80 LTV

Will definitely cash flow good! With primary financing it rolls in about 700 a month for one room and when I rent out my old room it'll cash flow 1400 or so.

@Sam Morgan

What property type are you going for on the next property? I'm assuming you wanted to go FHA for multifamily only being minimal down granted you could go 5% down on the next one if it's a single family. You can have multiple FHA loans if they're around 100 miles away from each other and a couple of other guideline restrictions.

@Will Fraser Is definitely right on this approach. Personally when you look at the outside perspective looking in, I never recommend clients pay down priciple to get rid of PMI. It's not worth that much of your cash.

@Sam Morgan Now with where the market is right now, do you need your FHA loan down the road? I have clients doing FHA streamline loans to get 2.25% and then they hold onto it for the rest of your life! Or you could chance a conventional appraisal and see if you're loan to value has gone up (appreciation, increase rents, etc) to drop it off sooner.

To better answer this I would ask, what's your next step? Are you going to do the same thing again with an FHA loan on the next property? Also, how are your scores looking currently? Are you 680+ or no?

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Phoenix.

Purchase price: $215,000
Cash invested: $65,000

A duplex was brought to me by my handy dandy realtor from a pocket listing (not for sale yet, just about to hit the market and my realtor knew the details before it was even listed)

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

I wanted a legit rental property. Not house hack or anything but a real deal investment. And this duplex was too good of a deal.

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

My handy dandy realtor called me up and told me about an agent on his team wanting to sell her duplex.

How did you finance this deal?

purchase price was 215k, appraised for 250k and we needed to put down 25% on the 215k purchase price

How did you add value to the deal?

house was renting out both sides for $975 each. Mortgage is $920 PITI per month. Each unit is a 3 bedroom 1 bathroom house so looking up comps easily showed we could rent it out for 1100-1300. One tenant moved out, we remodeled that unit and moved the renter that was staying into the fresh unit which allowed us to remodel the other unit. RIght now we're getting the final touches done, will rent it out, refinance once we hit 6 mo(title seasoning) and look for the next!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $266,000
Cash invested: $30,000

House hacking my primary residence by renting out each room to cover my mortgage plus some!

I partnered with a friend of mine who will do the labor/remodel while I finance and support the deal financially. We live in the property and rent out the other rooms to Flight Instructors since he's a Flight Instructor as well and get's asked all the time if he knows anywhere to rent. The best part is that the Flight School's bunks on site are $750 a month so easy pickings from them.

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

The location being in Gilbert AZ in a nice area was perfect. Worst house on the block in a good area.

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

MLS deal, used the inspection to negotiate 30k off the deal since it was in original shape from the 80's and had a leak in the roof.

How did you finance this deal?

First time buyer conventional loan. I could've put 3% down but I put 5% instead.

How did you add value to the deal?

Complete interior remodel.

Lessons learned? Challenges?

Partner when they can cover value that I cannot!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My trusty realtor that does all of my deals and my good friend that can do the remodel.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $266,000
Cash invested: $30,000

House hacking my primary residence by renting out each room to cover my mortgage plus some!

I partnered with a friend of mine who will do the labor/remodel while I finance and support the deal financially. We live in the property and rent out the other rooms to Flight Instructors since he's a Flight Instructor as well and get's asked all the time if he knows anywhere to rent. The best part is that the Flight School's bunks on site are $750 a month and we can rent out 2 other bedrooms to live for free and double our mortgage :)

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

The location being in Gilbert AZ in a nice area was perfect. Worst house on the block in a good area.

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

MLS deal, used the inspection to negotiate 30k off the deal since it was in original shape from the 80's and had a leak in the roof.

How did you finance this deal?

First time buyer conventional loan. I could've put 3% down but I put 5% instead.

How did you add value to the deal?

Complete interior remodel.

Lessons learned? Challenges?

Partner when they can cover value that I cannot!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My trusty realtor that does all of my deals and my good friend that can do the remodel.

@Michael Seeker I've got another layer deep question for you on this one if you and @Sam Grooms are up for it. 
So I have a piece of raw land with utilities on it that I'm wholesaling. Perfect for an apartment complex and in an area that has massive appreciation development coming to it with the city support for an apartment. I could snipe away at apartment owners one by one looking them up on county tax records, skip tracing them and calling away. Is there a way you know to find a list of apartment complex owners in a certain radius that I can pull up on a list somewhere or somehow? 

Following this and interested to learn! Specifically for the land development side of things. Whats your due diligence process look like when you're deciding which parcels of land to build on? Soil tests, aquafer tests, etc? 

Wholesaling 18 acres for potentially a 500k profit from what the comps show and want to have a very well put together presentation and tests already done to provide. 

Thanks!