All Forum Posts by: Logan Pourbaix

Just trying to gather a poll. Obvioiusly one of the perks of the BRRRR strategy is obtaining value add property that you can create equity in after a rehab. Im just curious as to how many of you leave a portion of your own money in a BRRRR vs taking the full LTV amount during the refi? Its nice when you can be left with excess funds after the refi to reinvest. If you BRRRR a property that positive cashflows (better or the only way it cashflows) with leaving a portion of your money in the deal, do you consider this a bad thing?

I'm looking at a deal where a single family home can easily be converted to a duplex. Everything checks out. The Zoning is there, minimal reframing etc. My question is in regards to the electrical. Of course I would have to get my local EMC to set a new service for the additional unit, but what about interior wiring. 95% of all the walls/sheetrock are in good shape. obviously Ill need a new panel and each unit's wiring needs to be independent of each other. I hate to take down the sheetrock to the studs just to rewire. Any recommendations or anyone ever did a similar project? What did you do? Single store on a slab.

There were several properties listed scheduled for auction this morning at my local courthouse. When I arrived at 10am, there was only one property being auctioned off. I did some digging and found out that the other properties were being sold through a different auction company. Upon calling the other companies I discovered that the other properties had been cleared for sale and they would be sold today between the legal sale hours of 10am to 4pm. These different auction companies use one auctioneer for multiple auctions in the area and they would offer me no update as to where this particular sale was listed in the roster. 

My question is relatively simple. Is this common with a lot of auction companies or is it just these one or two in particular? What do people do if the time is not clear, sit at the courthouse all day? Im all about hustling and being patient but I do have other tasks to do throughout my day. 

@Bryan O. This is a very helpful! I have since gained more insight as to what is happening within the current management. I received a copy of the "lease" and these seem to be month to month rental agreements. I have sent the "rental contract" to my lawyer for further review. In the event that this is not the case, I could see a high success rate in paying the current tenants to move out, most likely for a nominal rate in this case and still have enough room to hit my margins. Another worst case scenario would be to keep the renovation crew smaller and buy two tenants at a time out. Thoughts?  I appreciate the advice!

Hey BP, 
Im looking for some advice on a deal I have in front of me. This is a 7 unit property with no vacancies. My numbers are there & financing is available. My problem is this is a C class property surrounded by several B- class properties. What I would like to do is a renovation of all seven units and try to bring rates up and gain a slightly better quality tenant. My thought process in this would be to purchase and remove  current tenants to do a complete overhaul and re rent, which isn't going to be a problem due to a large textile mill just down the street with hundreds of employees always looking for housing opportunities. At the end of the day, business is business, but I would like to be able to offer tenants some type of relocation service. The last thing I want to see is someone with no where to go, or worse some getting mad and vandalizing/stealing from the property later down the road. Has anyone ever had any experience with a situation like this or a renovation of properties with no vacancies? Thanks

Logan Pourbaix 

@Whit Ewen would you care to expand on the idea of the costal companies looking for back up sites? That sounds like a interesting concept I would like to be further informed upon. Thanks 

@Ash Patel@Matthew PaulThanks guys, Im also going to consider getting a storage consultant out to do a market feasibility study for me. 

@Jeff Kehl I appreciate the advice. Its funny you say that about the marijuana industry, Ive had the same exact conversation with about 10 people, alot of them like myself would be sitting on somewhat of a small goldmine if that would come to fruition. lol But for the time being Ill check harder into some of the main industries within the area. It would be nice to find a brewmaster that is looking for an investor, I could provide space and financing for equipment in exchange for a percentage of the profit. 

Taylor, 

Thank you for the help. I will try to answer a few of your questions here: 

1.) it is a single tenant building and Ive had it on the market for $120,000 or rent for $1200.00 month which are both what I feel based off of comps to be below market value.

2.) Most of the marketing has been done solely on MLS, so there is the possibility that is not getting the exposure that it needs. However the area is very under commercialized, I would not even venture to say that the "main road" it is located off of would be considered CBD. A business that did not need foot traffic from the public would be a perfect fit.

Overall, what I would really like to have is an investment where I could gain more returns than just normal rent. An investment that I can manage: self storage, etc. Location just seems to have me in an overall bad spot. 

Hey BP, 

I am looking for some ideas for a commercial warehouse I own in Toccoa, GA. The area is not necessarily "booming" and the warehouse is located on a side street off of the main road in town so therefore there isn't any main highway line of sight. The warehouse is around 16,000sqft and I have tried to rent it and sell it without any headway. Id like to see if anyone out there has some innovative ideas I could use to get this cash flowing. Thanks