All Forum Posts by: John Daniels

I finished a rehab in south Louisiana and listed it about 2 weeks ago.  Not a lot of action sale front.   But got a call from the realtor and was asked by the prospective buyers if we would be willing to rent it. Definitely not opposed to this since that was our exit strategy from the start. Since the realtor brought this up from buyers how does this affect the agent commission if we may no longer sell it?

Hi All,

Does anyone have any recommendations and experience for DSCR lenders in Lafayette, LA or southern Louisiana?

Thanks John

Hi Scott,  Thanks for the feedback.  Not to take away from the contributation of the forum but I have lots of detail and probably would be best to hold a conversation with a CPA.  Once path is defined and taken I can post the story here for others benefit.

And boy, do I have a problem! Completely self induced for sure. I am looking to get some advice on what to do about the real estate I currently hold and what to do with it. I guess I am looking for a CPA that specialize in REI(I am assuming). Does this CPA need to be in the state the house is in? Since this is "here is the situation and here is where I want to go" dialog it may not be state specific. Where do I find CPA on BiggerPockets? Is there a marketplace for something like this?

Thanks 

Hi All,

One thing I need clarification on in the BRRRR method is the refinancing part more specifically how much cash I should pull out of the property. Property will have a ARV of about $250k and rent for about $2k. If I get cash out of the house to cover the rehab cost, $60k, then this would cash flow nicely. But if I get the full available cash out of the house, say 75% LTV then this increase my mortgage payment which reduces my cash flow on the house.

So here is my question but it is difficult to ask. If you reference the chart it shows a co-planar relationship between cash out loan and the payment and profit. Is there like a sweat spot or financial balance to which the cash out loan amount? In the BRRRR process what do most people do? 75% LTV or just enough to get and rehab another house?

On the current property I have used about 1/2 cash and 1/2 credit card for rehab. Do people use 100% credit on rehab and use the cash flow from other property and use minimum credit card payments to the end of the project? If so then I can see not getting out the whole LTV cash out.



Hi All,

Thanks for all the GREAT feedback. I will do more research on DSCR loans. I originally did not mention this but I do plan on going back to W2 career after this little educating sabbatical. I like the property loan to be based on business qualification and not personal since there will be more.

One thing I need clarification on in the BRRRR method is the refinancing part. If I get cash out of the house to cover the rehab cost, $60k, then this would cash flow nicely. But if I get the full available cash out of the house, say 75% LTV then this increase my mortgage payment which reduces my cash flow on the house.

So here is my question but it is difficult to ask. If you reference the chart it shows a co-planar relationship between cash out loan and the payment and profit. Is there like a sweat spot or financial balance to which the cash out loan amount? In the BRRRR process what do most people do? 75% LTV or just enough to get and rehab another house?

Hi All,

First time BRRRer and at a point where we are finishing a rehab and trying to figuring the exit strategy. I know, we were suppose to know this at the beginning but just want to take action.

The house… is where I grew up. Both parents passed and the house was “Act of Donation” to me. The house is/was in bad shape and at the time of figuring out the estate with my 2 sisters the value was about $75k. We, wife and I, decided to buy out my sisters and rehab the house with our own money. Forward 9 months we are just about finished the rehab. Rehab costs are going to be about $60k(little more than expected) including new roof, exterior, interior, etc…

The house is located in south Louisiana. Estimated ARV is about $225k-$250K and market at this time is strong according to local realtors. Rent for this house could be about $1.7k to $2k.

Situation… We got into BRRR for passive income and for the first house, this was, I guess, is a good start. We used our own money for all rehab and holding costs. We are estimating to complete the project in about 3-4 weeks. But we are also getting very short on money but will have just enough but we need to get our rehab money back out ASAP.

We current do not have income(W2) since we left careers to attempt REI.

I see 2 exit options:

1 - Quick exit back to financial black, out right sell the house. But this will not give us the passive income we initial wanted to do.

2 - Rent it and somehow get our rehab cost back out. Challenges will be the time from time of rental to able to get a mortgage. Or maybe I can’t get a mortgage and have to get a cash out refinance since I already own it. Either way I believe there will be a long (or too long for us) seasoning period.

So I am looking to experts for help with this discussion or maybe there is an option I am not aware of. 

Any advise is appreciated.

Hi All, Does anyone have a recommendation for a CPA with knowledge in REI in the south Lousisana area? I am at a point that I need help with exit strategy either turning a rehabbed house into a rental or sell it.

Thanks

Hi All,

I have a house to rehab that is 1600 sqft and the occupants were heavy smokers.  Walls look yellow and kitchen and dining room are wood panelling.  I have been reading through the post here about rehabbing a smoker house but these post are very dated... 

Is there any new method of dealing with smoker rehab house today?  

Shellac still viable or is there something better now?

What is the success rate of just covering up with shellac and paint?

The walls have texture and I think a flat smooth surface is more desirable, will a skim coat of mud over shellac'd wall work?

Will 1/4" sheetrock over plywood work to block smoke?

Thanks

Hi BP,

Is there a way to finance a rental property that is cash flowing, has a current longterm lease with built in annual rate increase for someone who does not have a job?

If so who are some of the companies that do this

Thanks