All Forum Posts by: Kyle Coleman

Morning BP,

I'd like to thank all of the regulars for their insight, it really does help newbies like myself get a foothold on a strategy for investment. 

I decided that I'm going to start off with the 'BRRRR' strategy. I liked the idea of buy and hold rentals (and my family has been in the business for awhile), but didn't like the idea of saving 2-3 years per unit. I'm in south Louisiana, which was obviously affected by the "500 year flood", meaning there are a lot of flooded and gutted properties selling for as little as 15k. However, I've never done a full rehab. These units have frames, half of their drywall in most cases and a roof. Typically everything else needs to be redone, sometimes electrical is unaffected.

First question, is it a good idea to try to tackle my first investment property as a total rehab? Assuming a 1500 sq ft SFH, does anyone have a ballpark idea of cost of a full renovation? I know it's going to vary greatly depending on location, etc.

Second question, I'm working with a small local bank that told me since I don't own a primary residence (sold it last month due to unforeseen personal circumstances (ie divorce)) that they have no problem underwriting the loan as a primary residence that I can just "change my mind later" and not move in.  They claim they do it all the time and that it won't interfere with buying an actual primary residence later down the road. With that being the case, they're telling me I can put 5% down and lock in a lower rate, I feel like if this was true, every buy and hold investor on the planet would rent their primary and lock in low rates and very little money down to REFI later.  Can someone tell me why this is too good to be true? There has to be a catch. 

Last question - while I don't intend on doing this, has anyone in this area had luck with flipping flooded properties? I kind of feel like people are scared to buy homes that were in flooded areas (although there were a lot). These properties are currently going for pennies on the dollar, homes that were valued at 150k+ are selling for 45k so people can get out of their loans and start over. 

Thanks so much for any information you guy can give, ya'll are awesome. 

Honestly Garrett,

I'm not super sure there is a way to do a refinance without proof of income.  How much risk would the bank put themselves at in order to do that for you? A regular refinance is one thing, but handing you a pile of cash is another. How strong of a borrower are you, does everything else add up? 

I feel like  you would have to know someone that is in a position to achieve that, and it might be kind of underhanded.  I dont think the underwriters will be like, no income, no problem on this. 

Actually - I just checked a couple of the sites and it looks like its starting to populate.  I guess it just takes awhile, still set on pending though. 

Hello All,

Fairly new to land-lording and decided that I would give TenantCloud a try.  I inherited some properties, and for the last 15 years or so everything was done with pen and paper.  Since I rent to a good number of millennials who are very much in tune with electronic processing, I figured it was time to bring the business into this century.  Anyway, I've got a property that I want to list, and I was trying to take advantage of the "marketing websites" which consist of 26 or so various real estate websites like Zillow, Trulia etc.  However, the listing says "pending" on that section and I'm not sure if I need to do anything or it just takes awhile (its been like this for 2 days). 

Thanks for any information anyone can provide!

Kyle

 Lee,

What system do you use to collect electronically - and are you subjected to the 2-3% fees? If so, do you pass that fee onto your tenants? I'm considering starting to accept payment online and just curious for feedback.

Thanks,

 Indeed, 75 units for the free version.  I believe it's 9$/mo to upgrade, which nets you 150 units plus some additional features. 

 @Larry Fried,

I just read your post and it was indeed an interesting read.  Could you please PM me the name of the company? I'm keen to find out a bit more about them and their ideas.  

Thanks!

Kyle

You could try https://www.tenantcloud.com/.

It's actually free to use, but it does have a limit on properties.  I use it for buy and hold, not flipping.  Not entirely sure what the capabilities are for flipping on it. 

 I love this answer!