All Forum Posts by: Kevin Brenner

Thanks for all the replies!  But I have another issue:

I've done some research and found out that very few insurance companies will insure a property with older fuse boxes (instead of modern breaker boxes).  This presents a problem as this property has 4 individual fuse boxes.  Do you think I should try to get a high risk insurance policy or just replace the fuses.  After talking with some electricians, it looks like it will cost about $8K to replace all the fuses with modern breakers (that includes updating the building with hardwired smoke detectors which is a local city ordnance that is being enforced).

At the moment I was trying to BRRR this place.  I've considered fixing, adding value, raising rents, and flipping, but I'm honestly not sure. Appreciate any advice from the BP faithful!  

Yup MLS. I've become pretty savvy at analyzing deals by listening to BP and educating myself at local REI meetups. And I'm sure a little bit of luck was involved too :)

I tried local statefarm and they quoted be double! Appreciate your reply! 

I got stuck with a similar zoning issue.  Sadly, I had to pull out of the contract because my lender wouldn't budge.  Not to mention, the seller's only had one electric meter on the house despite being a Triplex.  They wouldn't rewire the home and my lender wouldn't help so I walked.  Bad news, but that was my experience!  Hope it fairs better for you. 

I have my first Quadplex under contract in Savannah, GA and I'm looking for any insurance recommendations.

I got a quote from USAA and they are pretty good, but I'm not sure if I should be looking into commercial insurance or residential home/rental property insurance considering it's a 4-unit building?  

Thank you in advance! 

The ARV is $135K and I plan to finance the $70K with a conventional 80/20 DTI home loan.

So the family/friends rehab loan payment would be on top of the mortgage. That's why I'm leaning towards a balloon payment. This house doesn't quite scream flip since the reno is extensive and the ARV isn't super impressive.

I've been working through some creative financing ideas and I'd like to float this by some more experienced REIs: 

I'm looking to buy a house for $70K. I have estimated that to get it rent ready it will need about $40K worth of rehab. The market dictates that a rehabbed house of this size can get $1100/mo (hits the 1% rule after rehab). My strategy is to buy and hold for 5-7 years before evaluating if I should sell, refinance, or HELOC.

I have family/friends lender that is willing to pay the $40K rehab costs. Is it wise to set up a 5 or 7-year fixed rate balloon term with this lender. My thought process being that using a balloon payment that is amortized over 30 years will greatly increase my cash flow without crippling my capital and ability to invest in another property. As long as the house appraises decently well after rehab I should be able to sell/cash out refi/HELOC to pay the balloon right? Or is there something I'm not thinking of here?

Any help from the BP crew is much appreciated! 

@Emily Caldwell I'd love to check out these events in the future.  Unfortunately I will be out of town this Friday.  Is BP the best way to stay in touch?  Or is the fb group more active?   Just a newbie looking for some help! 

Cheers