All Forum Posts by: Joshua Sun

Hi,

Wondering if you all have the top things to focus on that affects the ARV during a Flip or BRRRR. Example - Flooring, appliances, windows, countertops, HVAC, bathroom #s, bedroom #s, etc.

And some things that first timers focus on that don't affect ARV at all or very little.

Thanks for the help! 

 Hey @Bruce Woodruff, thanks for the response. Yes I should have looked through the forum for this question already, but I sometimes like to do a new post in case there is a more recent or new advice, and maybe if it hasn't been asked in a while, it could help someone new who is browsing. Our real estate agent is helping do project management, and using his contractor team, so I'll bring up any potential discounts their team has!

For warranty, are you saying a good general contractor wouldn't recommend adding warranty to appliances? Wouldn't it make sense for a fridge, or microwave, in case it breaks within two years? 

 Hey @Andrew Postell, the credit card is to pay for materials, like new floors, paint, appliances etc. I'm buying the property all cash, then using our own money to fix it up, but thought I could rack up some points on a credit card like others suggested on here. Was wondering if there is a good business card to use, but others listed some of their favorites on here already! 

 Hey JD,

The property is in Kansas City, Kansas, and I'm based in New York.

We have a great real estate agent we've worked with for our first investment, that will also project manage this project with contractors he uses for his other projects. We also used to live there and have friends and family for any additional check ups or support. 

Buying materials from our business credit card sounds easy enough. For labor payment, sending a physical check might take too long, so maybe a bank transfer or venmo could work, that also leaves a electronic paper trail. 

Thanks for the advice! 

For labor we were thinking of using our business checking account to wire money or even use Venmo through our business account.

For things such as furnace, flooring, paint, lighting, etc. we were thinking of using our business credit card, and buying all those things ourselves.

We'd keep a copy of all invoices for labor, and receipts for purchases for tax purposes.

Is there any advice or anything we should do differently? Is getting a business AMEX or other credit card with higher annual fees but better points/benefits worth it for a first one? 

Thanks! 

 @Dan Krupa Hey Dan! The KCK properties make more sense for us right now based on our all in budget and the amount of rent we can get to make it cash flow. There are a few areas in KCMO we are looking at as well, but mainly KCK for now. We'd love to move into KCMO after we get some BRRRRs under our belt and go into higher costs projects! 

I should also note our real estate agent will be helping us project manage, is also an investor, and does deals in the same area as us. 

Hey all,

It's been a little while since I've been on here. The community helped me find a great real estate agent who helped my fiance and I get our first investment property in 2021. The community also gave some great tips before, during and after getting the property. Kudos again! 

We've been saving for our first BRRRR in the Kansas City, Kansas area with the recommendation our rock start real estate agent. And now we are in the phase of looking at potential deals.

Again we got an amazing real estate agent. They have access to great contractors. We have our bank ready to refinance, great inspector, insurance, property management and everything ready to go. Also we are doing this all remotely. 

Just a few questions for a nervous newbie. We will be using all of our own money for the buy and rehab.

What's the worst thing that can possibly go wrong? Any nightmare scenarios people have gone through on here? Things to look out for?

Are you always looking to add bedroom / bathrooms? So finding big lot size is best? I.E. look for 2 bed / 1 bath and try and make it 3 bed / 2 bath. Or is adding a bed and bath insanely expensive and time consuming? 

How do you more accurately predict rehab costs during your fist one? We have general guesstimates, but feel like without our real estate agent / inspector / contractor to go through before closing, and us doing it all remotely, it feels like a hard guess. 

Interest rates are hovering between 7 - 7.6% and is making it hard to cash flow. I guess a back up is to just sell if it if we can't make it cash flow. Is there anything wrong with holding a BRRRR deal that doesn't cash flow the first year, and is only a few hundred dollars loss versus just selling it?

How do taxes work when when you increase the property value, and then refinance it? 

I hear the best way to learn is to dive in, but we are terrified we could lose a good chunk of our money in this, and have to wait another year or two to try again.

Any answers, advice or encouragement would be great! 

Thanks again to the community! 

Curious if you all think the rates will go up, down, or maintain.

What do you think it will be at?

Are you all still finding deals with the current rates? 

Relatively new to investing with only one investment property, and wondering how to find any deal with rates this high.

Are you all leaving more in each deal to make it work? 

Thanks!

Before I got into real estate investing, I would put my a big chunk of my saved money into into an S&P 500 index fund and work 401K. 

I now find myself putting less and less into index funds, stocks, and 401K, and easing more into a general bank savings account. I find it to be less fluctuating since the goal is to put that money right back into real estate. This is all separate from an emergency fund. 

Curious how all of you approach storage for savings. 

Thanks!