All Forum Posts by: Kevin Merlander

Investment Info:

Single-family residence buy & hold investment in Myersville.

Purchase price: $705,000
Cash invested: $65,000

STR in Granby Colorado.

Thanks to all, I definitely like the strategy of taking the lowest comp and knocking a percentage off of that, whether it be 10%, 15%, or even more depending on your appetite. I'm running the 65% LTV or 60% LTV if the property has some hair on it. In my market we see a spike in demand come spring, however, the rates will dictate that a bit more this year. I appreciate all the thoughts!

Thanks for all of this input! Very beneficial to understand different perspectives, regardless of the market conditions.  

Hello BP Community, 

To all the Fix and Flipper's out there, I am curious about what everyone is doing to pivot and adjust their underwriting during these times.  

I have completed a few successful flips and generally speaking, Q4 is an amazing time to acquire the next project. However, with rates increasing and the market slowing, everything tells me to proceed with caution and be very conservative with underwriting. On the other hand, there are plenty of deals that are coming across my desk. I see plenty of investors out there that are very active and picking up solid rehab projects. I know that nobody has the crystal ball, but I'm curious about what investors are doing to consider their ARV in 2023, or if they think it's highly unpredictable.

My market is Denver, and although we are slowing, prices are not quite dropping as you hear in the headlines (depending on neighborhood location).  Although home values are a lagging indicator, we are still at about 1.8 months' supply of inventory, so we are technically still in a seller's market with a long way to go until we are in a market "of balance". 

Just interested to hear everyone's thoughts...

@Carl Millsap Hey Carl, I did ask the seller for the 5k in the form of seller concessions.  In this market we are seeing an increase in rents at 3-6% (conservatively). Cash on cash return came to about 20%, I am a realtor so I would use commissions.  The issue here is the building is primarily investors so there are a lot of tenants. The building is sound, but its quite an eyesore, so I am concerned with any special assessments coming up in the future. 

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Investment Info:

Single-family residence buy & hold investment in Kings Beach.

Purchase price: $175,000

Vacation Rental in Lake Tahoe, Ca.

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

I get to use it, and cash flow more than I would with a traditional renter.

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

MLS, yes I negotiated and bought it over 30K less than the asking price.

How did you finance this deal?

Conventional loan with a bank.

How did you add value to the deal?

I did light repairs, added a fireplace and furnished with high end furniture.

What was the outcome?

A cash flowing Airbnb!