All Forum Posts by: Ko Kashiwagi

Hi Wilson,

You should definitely look into problems you are concerned with! You can also put an inspection contingency, so you can renegotiate or back out if issues arise during inspection.

Hi Gustavo

As @Riley Schaefer mentioned, it depends on what strategy/financing you are looking to use. If you are going to most basic route, a rental loan will require roughly 25% down (most lenders won't go below 75k-100k loan amounts). If you are using a fix and flip loan, it will require 10-20% of purchase price.

If you are more creative, you could look for lower down payments with seller financing and sub-to, but these deals are a lot harder to find.

Best of luck!

Hi Bauclair,

I'm assuming you have an inspection contingency clause that allows you to back out of the contract? If you feel that the offer is not worth $626k, there is no reason you need to force through the purchase. If you think it's a bad deal, it's a bad deal no matter how many other offers exist. Given the inspection findings, you have a basis to renegotiate the purchase price or request seller concessions, such as a price reduction or credits at closing to cover repair costs as well.

To do a proper analysis on whether the purchase is worth it, you'd need to calculate the expected rent after repairs and the ARV. If $626k still makes sense given these inspection reports, then you could perhaps do a BRRRR.

Hi Ben,

I recommend finding investors and private lenders at meetups. If the numbers make sense and you can gain their trust, the deal will work out!

Hi Andy,

Yes, most lenders will only do line of credit for primary residences. A common strategy here is to access the equity through a cash-out refinance or selling.

Happy to connect!

Hi Daniel,

What is your ARV estimate after you put in the renovation? It sounds like this is not necessarily a turn-key, but it could be a BRRRR.

Also, have you considered a 30 year fixed mortgage? This would allow you to get higher cash flow.

Hi Wyatt,

The timing of pulling cash out would depend on what financing you choose. If you are getting a HELOC, it generally doesn't hurt to start early because you only get charged when you withdraw. If you refinance, you would be paying monthly, so it would be better to do this closer to your next purchase.

The house-hack BRRRR is a smart strategy, but there are a few caveats. One being the fact that many conventional financing will not be approved on properties that are too beat down, so there is a limit on how much value-add you can do. Another issue is that conventional refinancing has a long seasoning requirement - this can change if you choose to move out and do a DSCR refinance.

Hi Celine,

An umbrella policy is simpler to set up and manage compared to an LLC and you can get policies that are sufficient to cover the asset. You can also buy the property cash under you name -> transfer the deed to the LLC during refinance, so you can always start with personal name. However, some DSCR lenders provide better terms for properties held under LLCs in terms of rates and terms.

Hi Kenneth,

The best way to build a relationship is through the phone. You can get a lot of information out of it and build rapport. If you have a lot of buyers, you can also simply create a form they can fill out.