All Forum Posts by: Justin Pumpr

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

Hey all. Thanks for the replies. I had one more thought and would love some input. What if in the upstairs unit only, I put French doors that going from the living area into the back bedroom? That way you'd get the light, but it could also be used as a bedroom with curtains behind the doors for at night. I'm trying to think of who would buy a 2/1 duplex and I can only think of two options:

1) would likely be a couple who would live upstairs and rent out downstairs in which the back room wouldn't really get much use as a bedroom, so the room could be used as a guest room, but it could also be an office area that opens up onto the balcony.

2) The other potential buyer would be an investor who wants to rent out both units. In this case a true 2/1 would probably be better, but would the French doors make that less enticing as a rental, as I expect it would likely be rented to a couple, or a very small family who wouldn't need as much privacy.

Thoughts?

@Jo-Ann Lapin There's such a mix of properties in the area there isn't really a "normal". It literally goes from 1 bed to 6 bed all within a few block.

@Frank Wong That was the idea! I'm trying to make it as nice as possible, but with the rental market in mind.

FYI, I wasn't considering making it a 1/2, but I was considering it being a large 1/1. It looks like I'll have to find some other way to get natural light into the living space then!

Cheers for all the input :)

Hi all,

Posting this again with the floorplan to try and get some insight from investors and realtors. The question, do I keep the "master" bedroom, or do I remove it and open up the living area? The main reason for wanting to make it a 1 bed is because there is almost no natural light in the living space at the minute.The windows on the non-bedroom walls are so close to the neighbours property that they hardly let in any light at all. If I make it a 1 bed, the light from the patio door at the back would flood the place and allow a nice entertaining area.

Thoughts?