All Forum Posts by: Larry Chen

I found this really helpful Steve, thank you. I agree there's huge merit in tackling the full-gut projects and I will certainly take it upon myself to learn everything anyway.  I just have to determine if I can commit the time to a full-gut for my first deal; I have to admit I've tucked 203k properties away at the back of my mind because they've been intimidating. 

Thanks, Joseph. I agree I have to dive into it and learn as I go; it just so happens the numbers don't make sense for the markets I'm looking at right now.  Nonetheless, I'm flexible enough and can use either the value-add or turn-key approach so I'm patiently waiting for a good deal or for one of these sellers to be amenable to concessions. 

Greetings BP community.

I've been spending a few weeks analyzing dozens of deals a week in my markets and I was curious how everyone approached their first House Hack or investment rental? Did you prefer something turn-key [and ready] or did you want to find a value-add to raise some equity after a few weeks/months of rehab? Granted, not all turn-key properties are without faults that may need improvement within a few years but there should be reasonably less need for maintenance than something needing a rehab. On the other hand, the rehab/BRRRR gives you equity sooner to refinance or have an exit strategy.

I appreciate any thoughts and feedback you may have.  In other news, if anyone is browsing the NJ market, I'd love to connect and talk about what you're working on.  

Thanks in advance.

I second Veronica. I would say it depends on if you need the money right away for another deal but it didn't really cost you anything to close the deal in the first place so you kind of picked up a free asset that will pay you about $100-150 a month. Try to judge your market though; I agree with Veronica's point that the SFH may not be as stable due to demand but that's entirely dependent on your market. Good luck!

 I second [or third] the points here. 

Plug in your mortgage insurance premium (MIP) for your down payment and add your PMI to your monthly expenses at the very least. Those will affect your CoC the most, but you will want to adjust your vacancy and insurance as well.

You were generous with your expenses, which is a good thing. Is this a 3-unit? So rent is 2300 per unit? I don't know the market but your numbers still look good even if you had to reduce the rent to mitigate vacancy.  I like the numbers.

Disclaimer: please take my input with a grain of salt; I'm still in the middle of my first deal lol.

Without factoring in taxes, it still sounds like a great deal. I can't tell how much you intend to put into the reno but the cash return should be more than enough to make up for it.

Disclosure: I'm still working to close my first property but I wanted to offer some input with the analysis so take my opinion with a grain of salt, haha