All Forum Posts by: Kim Forgione

Welcome @Randall Hicks. I'm also a newbie in the PDX area looking at out-of-state deals. I've been studying for quite a while now and hope to make my first deal within the next year. If you want to bounce ideas off each other or want a second set of eyes for analysis, I'm available. Also, you mentioned needing law services. I have a contact who provides a set fee program for unlimited attorney advice. There's business, real estate, tax, and other attorneys available and I think it's only $20/mo. PM me if you need the number or if you just want to chat. Would like to get to know fellow investors in the area. Good luck :)

Thought I'd try to revive this post once again as I'm interested in you guys' arguments for free and clear vs leveraged properties, especially insofar as the tax implications. As a newbie, I've been under the impression that leveraging is the way to go since having your own money tied up in properties is no different than having them tied up in stocks. Another way I look at it is if you buy a property free and clear for $150,000 and after all expenses net $800/month, then it would take over 15 years just to break even. Any benefits (besides security) I'm missing that you proponents of free and clear can point out? Thanks

Thanks Kyle and Shawn :)

I couldn't tell the realtor I would list it with them since I plan on holding.

I have been using Redfin though; seems to be the more accurate or at least more detailed of the major RE sites.

I'm learning about the BRRRR method before I jump in and understand the importance of estimating repair cost and ARV. I plan on buying J. Scott's rehab book soon and hopefully that will help with the former. I heard that I should use an agent to get comps to estimate ARV. But if I buy off market or from wholesalers, why would an agent spend time helping me if he won't make money? I know some may help in order to build a relationship, but if I'm analyzing a ton of deals for every one that I take action on, that would be a lot of work they'd be doing for free. How do investors typically go about estimating ARV? Could I pay the agent a fee for their time? Would it be worth getting a RE license myself? TIA :)

Ah I see. Thanks for the replies guys. So it seems most investors use all cash or a hard money lender in the beginning? I somehow missed that part. 

I have a very basic question. Sorry if it's obvious but I want to make sure I'm getting this. Say using the 70% rule, you buy a property for 60,000 and spend 10,000 for repairs. And the ARV is 100,000. Assume you put 20% down in the beginning which is 12,000 and got a loan for 48,000. The goal is to do a cash-out refi after repairs in order to recoup the 22,000 you invested at the start, correct? Now this is where it gets murky for me. The bank will refi what percentage of the ARV? And how does the original 12,000 I put down come into play? To make this a good deal, what would be the amount of the refi and how much of that would be cash out?

Hi! Complete newbie here. I'm interested in buying multi-families using the BRRRR method but have several questions:

1. From what I understand, the main perk of BRRRR is getting your initial investment back out to buy the next property. And you do this by buying a property that needs work so you can increase the value and then refinance. As someone with no experience, I'm wondering how to estimate the amount of money needed for repairs? Get an inspector and then bring his assessment to a contractor? Bring a contractor to the site with you?

2. Do you estimate the after-repair value by looking at comps? If a multi-family, would you compare to comps in a traditional sense (value of similar properties in area) or in a revenue-generating sense (cap rate of comps)?

3. What should be the max amount of time to spend on repairs before renting?

4. When refinancing, how do you get the new value appraised (esp if value is based on cap rate of comps)?

5. The risk is not being able to refinance because the value didn't increase as much as you projected? If so, the only negative effect is not being able to get your initial investment out?

6. Is it true that I can get up to 10 conventional loans at a time (and my husband can also get 10) before I have to start looking for alternate forms of financing? And as long as the properties are outside of a 50 mile radius from my home, I can get a conventional loan which only requires on avg 5-10% down?

Hope my questions aren't too obvious. Thanks in advance!!