All Forum Posts by: Justin Pumpr

Hey all,

I am in contract to buy my first rental property in Columbus, OH and I'm unsure if I should close, so would love some opinions from some seasoned investors. The property just about meets the 1% rule and will cash flow at about $150/month (which isn't my target of $200/door). The property is a single family. I'm paying cash and will do delayed financing, so all of my repairs cost will be in the deal. Even if I waited for the property to season, I'd still be leaving around $16,000 in the deal. 

Details are below:

Cash Purchase price:73,500

Repairs: $22,500

All in: $96,000

ARV: $95,000-100,000

Rental income:$900-950/month

My concern is mostly the amount of money I'm leaving in the deal and not gaining any equity when I refi. Are they worthy compromises for the first deal? I've been trying to buy my first property for almost a year now, as I've been trying to BRRRR multifamily and have struggled to find a property that I can get all my money back out on. I also had an awful flip which has made me very cautious about taking anything too risky on which has made it harder to find properties that will BRRRR. Part of my says this isn't a great deal, so don't do it, but part of me is saying to buy a property and get things moving.

What would you do?

ps. thank you as

Thanks @Steven Foster Wilson. I managed to get some prices from Discount Granite, although they are are more in the $500 range. Hopefully J&R comes in a bit cheaper! If you have any recommendations for good quality laminate counters I'd be open to those too.

Hey all,

Does anybody know if you can buy prefab Quartz slabs anywhere in Columbus, OH? In CA there's loads of stores where you can buy a 8-9'x26" prefab slab for $200-300. Does that exist in Columbus anywhere?

Cheers!

Hey Jay,

When I said local I meant local to me in Oakland. The main issues were:

• he under budgeted the initial scope by a lot
• really poor communication
• multiple failed inspections
• missed all deadlines (it was supposed to be a 6 month project, it took 12).

Are you looking in Columbus, too? Feel free to DM me if you want to connect more.

Hi all,

I'm looking for a contractor who is experienced with rehabbing buy & hold properties to rent out. This can be cosmetic only contractors, or full rehab ones, but ideally ones that are used to working with long distance investors.

I'm asking for basically the holy grail here and I know giving up contractor details is like asking for your credit card number, but I at least thought I'd try. My first flip experience done locally was miserable because of having an awful contractor, so I'm really looking to avoid that again.

Cheers,

Justin

Thanks @Rick Pozos

Your point about paying too much is right, but I'm unable to find multi-family properties where the purchase price is low enough to accommodate the repairs required and still get a high enough ARV to get the cash out refi. Even on a property where you pay $100,000 and put $20k in, you'd need that to appraise for $171,500 to get your money back and that's not including any carry costs, or closing costs. I'd love to hear from people who have successfully done this on multi-family (2-4 unit) buildings and what those deals looked like i.e. purchase price, repairs, ARV. I'm seeing plenty of inventory for single family, but then you're only getting one door rather than multiple on the deal.

To your point about paying the property off, is this a preferred strategy to buying more properties? 

Hey all,

I'm at a bit of a quandary with my RE investing goals. My goal was to BRRRR multifamily properties in San Antonio, TX as the rents are generally rock solid there and the purchase prices are relatively low. One of the issues I'm finding in terms of numbers with the BRRRR method is the refinancing part. As an investment property the max you can cash out refi on a property is upto 70% of LTV. This means the appraised value of a rehab has got to be VERY high to be able to get my money back out and still cash flow. Even on single family properties the max is 75%. By leaving so much money in the deal, I'm unsure about how to scale this quickly. Like most people I want to achieve financial freedom. I understand this doesn't happen over night, but at $200/door I need around 50 doors to be able to achieve my goals.

My questions:

1) How do you scale quickly when so much cash is tied up in your assets?

2) Is BRRRR on multifamilies the right path, or is BRRRR-ing SFRs actually a better option? There are lots of "it depends" in this I'm sure, but I'd love to hear from people who have successfully managed this and at scale. Is it simply a case of not finding the right properties?

Thanks!

Thanks to all For those that are using property managers there, have any of you had to deal with evictions, major repairs, or emergency repairs? If so, how were those handled? @Tom Rairdon @Stone Saathoff @Manaia Alalamua

Awesome. Thanks very much for the recs!

Hey all,

Does anybody have any recommendations for property management companies in San Antonio, TX? I've looked on Google and the ones with the best reviews on there almost all have horrendous reviews on Yelp. Does anybody have a company they are happy with?

Thanks,

Justin