All Forum Posts by: Jonathan Paul Shortt

@Richard Helppie-Schmieder

I agree with you and what I am leaning towards for sure, just frustrated. The project is in Terrell, do you work out that way?

Supposedly he was promised by the previous owner the house would be torn down. He is just upset a new build is not going up in its place. Paired with a little bit of my contractor not doing everything he said he would. I spoke to the inspectors supervisor and we have a decent relationship now, my issue is just that he made the project cost so much more in the beginning now I'm basically at ARV with finishing it out.

Still looking at the option of refinancing for sure to pull my cash out, and it will still cash flow  my fear is if I get it appraised now it will be super low because the property is not completely done  

I, like many, fell in love with the BRRRR strategy and was constantly looking for property that would fit this category. I am in the Dallas area and found a property through a wholesaler in a small town (but growing rapidly) 30 minutes outside of Dallas. I jumped on the opportunity. My estimations were:

PP: $56,500

Rehab: $42,000

ARV: $127,000

Rents: $1250

The property was in worse condition than advertised by the wholesaler, but nothing too major that hadn’t been accounted for.

To keep a long story short, the city has been a nightmare, we have been issued multiple stop work orders for ridiculous reasons (trash in the front yard). I now have $115,000 total into the project and probably needs another $20,000 to meet the city inspectors expectations. It has taken 2 months longer than initially thought it would. My contractor is MIA, he’s tired of the project.

My question is would you try to get out of this ASAP and sell at a loss or push forward and finish the project, refi and rent.

Thanks for your input!

@Guru Kum Absolutely, I’ve used Scott Senner with InterLinc out of Edmond for mine. Pleasure to work with and knowledgeable

If your in the short term game of flipping, I’d agree with you. If you don’t plan on selling anytime soon, like myself, and have the income to cover your expenses, I say keep rolling. A 50% dip next 1-3 years means absolutely nothing for a 30 year hold.

@Paul DeSilva buying section 8 rentals and STRs that are within driving distance to Dallas.

@Asim Malik you can do a 10% down second home mortgage with most lenders. And you can do one in your name and one in your spouses name.

@Kaylee Pratt Purchased a vacation rental using a 10% down second home mortgage and the COC return is about 60%

Totally depends on where you are in your journey. I'm on my 4th investment property, but 1st BRRRR. For a seasoned investor this deal would be an absolute strikeout and disappointment. For a pretty new investor like myself, the learning experience is invaluable and I know what to look out for moving forward.