All Forum Posts by: Kevin Summer

The 3k flool item is fake floor*. In case I need to have level ground. 

Thanks for all the input guys. I like the ADU idea and thinking about converting a garage into an office. That way the tenant can have separation from distractions or children during zoom calls and it would be cheaper than making an additional living space. Less red tape too. I estimated that I could be the GC and convert it for around 13k:

floor-3k
dry wall - 2K

Recessed lighting - 1k

Electrical - 1k

Paint - $250

Insulation - 1k (fiber glass)

Floors - 1k

Hvac/vent - $1500

Baseboard crown molding - 2k

What are your thoughts. I really appreciate all the feedback. Do you think this would increase the rent even tho I’m eliminating the garage?

@Pavan Sandhu Interesting! This could help bring my calculations into the positive cash flow range. I'll run some numbers and post my findings! Thanks Pavan.

If you have any examples of this please share. If not, your comment was still immensely helpful. 

best,

Kevin Summer

@Joshua Hayes, great response. I'll try and brush up on Long distance RE. I have a feeling you'll go far in life...

 Had a great talk with Jon on the phone as well. @Jon Catterson Thanks for all the info and insight on the Sacramento area. I Look forward to hearing about your project as well. Looking forward to updates on your progress!

Thanks Joh, I just sent you a message with a bit more detail. 

@Joshua Haynes Thanks for the response. I guess my only hesitation is that I live in CA and wanted to be in-person to manage the rehab. How do you suggest managing a BRRRR long distance? Do you have any experience with this?

Is it possible to Brrr in Sacramento, CA? I've been looking at the housing market in that area for the past year and ran some Brrrr analysis' with poor results. One of which recently was:

7709 Jarvis Ln, Sacramento CA (I posted so someone could eyeball it real quick and see if there's something I'm missing, although I ran the analysis 4 or 5 times so I don't think I'm too far off. However, the ARV estimate and Annual growth assumptions might need work: Added repair cost to purchase price, expense growth 1.5%, income growth 3%, property value growth 6%.

I picked this property because I could add value with repairs and thought it was a good deal compared to comps.

I ended the deal analysis with poor outputs like -$122 monthly cashflow, -173 after refi, 3.43 purchase cap rate, -15% annualized return on first year with only %10 annualized return on year 30. 

These are the kind of results I'm finding in that area. I live in Santa Cruz, CA (near San Jose) and would like to Brrrr somewhere drivable if possible. Do I need to wait for a better deal or should I look in another area. Also, do I need to look somewhere more remote...