All Forum Posts by: John Prucha

I think it makes sense to proceed if you'll be able to live cheap or for free. Even if the property depreciates in the short term it's very likely transient. Just make sure the numbers work. Also, you may be in a stronger negotiation position given the economic uncertainty so good luck! I'm closing on duplex on Wednesday and am stoked!

@Chris Mason thank you for your reply, I'll have a look at the definition of "market value". Cheers!

@Joseph J DiFranco Thank you for your response, it's helpful to know there is a spectrum of practice out there.  

Hello everyone!

My investment partner and I are on the BRRRR train and have noticed that appraisals seem tightly influenced by offers. We expected a recent wholesale deal to appraise 20-30% higher than our offer. It matched our offer exactly. Recently, his cash out refinance deal appraised at exactly what he told the banker he thought it was worth. Is this by happenstance? Beyond upgrades, have others learned to have a perceptible influence over appraisal outcomes particularly during cash out refinances?

Thank you for your thoughts and insights!

John

You can never be fully prepared for the first steps. Don't get stuck reading books! Get some foundational knowledge and then take the leap! Your best education will come from your experience. 

Definitely go for the house or multifamily over the Tesla. One depreciates and creates neg cash flow and the other does not. Better to keep your car and drive to the end of it's life. The likelihood of finding a motivated seller and thus a good deal is pretty good right now. 

I'm a bit of a newb but my plans are to continue to buy and hold according to sound criteria. I am in the middle of a build out that may affect my re-fi so my plan it to avoid rehabs that are too extensive/time consuming that might get me caught at the bottom of the housing market and affect my ability to BRRRR and recover cash.

As far as making money during a downturn, you may have opportunities to wholesale. I suspect folks that are cash poor may need to unload projects. There will also be the misfortune of folks who lose their jobs and need to sell their homes and you could help them sell quickly so as to avoid problems. 

Done!

Hi James, 

I like your angle on the front range RE market and house hacking. It's a good approach. Someone who lives across the street from me did just that.  

The house is in Barnum. I'm putting it into the garage rather than on top and going to park on the street. It should be nice when it's done! What are your thoughts about the neighborhood? It doesn't seem like there will ever be huge appreciation upside but I suppose that could change if there are some knock downs in the area.

@Eric Schroeder Check with your banker/loan officer. As far as I understand that is no fraud. Better to deploy the money than let it depreciated in a savings account