All Forum Posts by: Kayte Flyte

Thank you for the response!  I haven’t offered yet but I do have liquid cash, just doing my homework before taking the dive as I do strive to be the former legitimate buyer.  This is good information though, I was expecting to hear this, but it seems so many people bypass having their own realtor so I wanted to see if that would be a good option for someone new to the field.  I’ve worked with multiple realtors now and things just move slower than I was hoping as there has to be a chain of communication as opposed to me directly speaking to the listing agent. Those people who don’t use realtors are probably well versed in making offers though.  

Hello,

Im new at investing (1st property) and I’m looking into offering an all cash offer on a property and was wondering if it is wise to use a realtor or just use the listing agent?  The home is in Indiana.  We have been speaking with our own realtor about this property but he’s been slow with responding and we want to jump on this opportunity.  

Hello, I am new to investing and want to make sure I'm thinking about BRRRR investing correctly. Please let me know if I'm thinking about this inaccurately in this hypothetical situation. Let's say I'm looking at a property for $350,000 purchase price, will put 25% down ($87,500) and it needs $50,000 in renovation costs. The ARV is estimated to be $450,000. If I'm following the 70% rule then I should not spend over $265,000. So let's say I invest a total of $315,000 with purchase price and renovations. When I refinance for 80% cash equity , if the appraisal comes back to be $450,000 that equates to 450,000-315,000 = 135,000 x 0.8 = $108,000 in cash equity right? That obviously does not include any costs that accrued from taxes, financing charges, etc, but otherwise that's $108,000 I can use to move forward with my next property?

Thank you in advance for your time and assistance! 

Thank you for the reply! I was planning on refinancing after the rehab, so I will try the BRRRR calculator. Also, that's fair about accounting for a substantial allowance, I will have to figure out how that equates. Thank you for the tips!

Investment Info:

Single-family residence fix & flip investment in Vertrees.

Purchase price: $335,000
Cash invested: $80,000
Sale price: $510,000

Bought my first home as a fixer upper and lived in it through the renovations. Once the renovations were done I sold and bought a new fixer upper which I am currently working on.

What made you interested in investing in this type of deal?

I have always been drawn to bringing life back into homes that have been through tough times. Seeing and then realizing the potential in a property that has been neglected brings me so much joy. That, and I couldn't afford to buy a home that wasn't a fixer upper in the Bay Area of California lol.

How did you find this deal and how did you negotiate it?

I used a realtor and Zillow to find this house and ended up paying more for it than it was worth because the market was hot. I've learned a few things since then.

How did you finance this deal?

Conventional mortgage.

How did you add value to the deal?

Sweat equity and a lot of creative designing to make the small spaces flow well.

What was the outcome?

A beautiful property that sold within 5 days.

Lessons learned? Challenges?

Don't buy a house infested with cockroaches and mice and expect to live in it immediately with any ounce of comfort. Trust your gut because it pays off in the end.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Wendy Ramer has helped me navigate the purchase of 2 homes and the sale of one and was flawless through the entire process. She is extremely patient and knowledgeable, and I would most definitely recommend her!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hello,

Thank you for helping me along my journey to purchase my first investment property!
I found it challenging to find comps for this property, as only 2 multi-family homes have sold in the last 12 months within miles of this place.  This is the average of the two comps though, so hopefully it has a ARV of at least $390,000.  Any advice on how to find more comps to get a better idea of ARV would be greatly appreciated! I looked on realtor.com, zillow and craigslist.