All Forum Posts by: Luka Jozic

 I have some boots on the ground that could help. When you say pay 5-10K for someone to handle all, what is all?

 I've read about that. So the first question is how do I do a title search in the most efficient and cost effective way? Also, could you elaborate on the stuff about lean searches?

Regarding that leak, since you were not the owner of the property when that water bill accumulated, why would you have to pay for it?

I am looking into ways to find better deals to BRRRR and have been looking into auctions. It seems like its a bit risky but also potential for great reward. I understand that I have to pay cash and can't run an inspection. It seems like the best I can do is go to the property and look at the outside and potentially peek through windows. Now of course there could be tons of hidden issues but I feel like if you can get the property at a deep enough discount, you should be covered for the most part. Now some of the questions I have are:
- Other than going to the property and peeking, is there any other way I can get a sense of its condition or hidden issues?

- What are some other things to watch out for that I maybe haven't thought of?

- I see there are some Auctions posted on the MLS that usually include pictures, whats the difference between those and the ones on the County Sheriffs website?
-What other due diligence should be done before joining an auction for a particular property? I mean other than the usual due dilligence?

- Lastly, o you guys think off market or auctions can provide better deals?

Really appreciate your response as well as other responses. And you do make a very solid point. I also listened to an episode of the BiggerPockets podcast today about exactly this, and they seemed to all be in agreement that finding a BRRRR where you can pull all your money out and still have cash flow, well lets just say you're gonna need some real magic to make that happen. So I think its more of pulling as much as possible out and as you said, not really expect cashflow but if you can get $1-200 a month thats great, 5 years from now that cash flow will be more.

Hi folks, I started out last year and just recently bought my second property. I am now in a position where I can buy cash and I figured instead of just buying nice properties until I run out of money, I want to supercharge my portfolio on start with BRRRR. I have been quite fortunate to land a solid team pretty quickly. I've read most the books, listened to podcast, read on the forum and most importantly, analyzed a ton of deals (mainly of the MLS). The issue that I have is that the examples in books, or numbers provided in other forum threads etc. don't quite make sense, at least not to me. It seems like most people that execute a successful BRRRR end up after financing with a deal right around the 1% rule. With the high interests rates right now it seems like the two options are 1. Pull out all your cash after the rehab and have zero or even negative cashflow or 2. leave cash in the deal and still have pretty low cash flow.

Like for example, say you buy a duplex for $70K, rehab for $40K, and then refinance at around $140K, that means Im leaving around 15K in the deal depending on closing costs and note that I don't even have any carrying costs here. At $140K and having only able to pull out 70% due to it being a duplex the PMI is just shy of $1000/mo. For the areas Im looking at (typical C) I can rent it out around maybe $850/mo per unit so 1700 total. The way i calculate is 10% vacancy, 10% repairs & capex, 10% management. So remove 30% and we have $1190 left. That means we have about $200/mo of cash flow. That sounds very little to me for all that work and if I were to do a hard money loan, it would be even worse! Is this about as good as it gets or am I missing something? Could someone help me make the numbers make sense?

I know there are similar threads but I wanted to ask this question for Toledo specifically. If you are not going to do a true BRRRR, does it makes sense to buy cash simply to get a lower purchase price? What I am thinking is mainly properties in good condition or just light cosmetic rehabs nothing too crazy. Buying cash can give you a lower purchase price, but for a SFH you would have to leave 25% in the deal vs if you buy with conventional lending you would only need 20% down payment. So the question is is it worth the potentially lower purchase price for having to put/leave 5% more in the deal?

Hi everyone,

There is something I have seen in many inspection reports now and I am not sure if this is something that is really necessary to do. I understand that the inspection says its a recommended repair but is it really? Im not an electrician so I don't know how important it is to take care of this. Also what is better/cheaper, converting back to a 2 prong or ground with a GFCI?

 I mean right now the property looks kinda old because of the paint. Every room is a different color and the trim is also different. It appraised at 80K. All im really gonna do is paint the whole thing. Regardless, my mortgage, insurance, and taxes will be just over $600 a month. Take away 10% for management and you got $720 left. Thats $120 cash flow and thats not accounting for any repairs or vacancy so that doesn't quite work for me. 

Hello everyone, an agent I've been working with has an off market deal that she is selling that she told me about before listing it. The address is 1460 Goodale Ave in 43606 and its a 4x1 at 1880 sqft. The property is huge and in great condition: new windows, roof, watertank, furnace and really only needs some paint. Hardwood throughout, kitchen and bathroom are not outdated but also not new, id say they're about average. It also has central air/AC. It has the potential to make a 5th bedroom and even a half bath.

Now, I know this area isn't the best. She recently rented a 3x1 at 1200 sqft for $1500 at Douglas Rd and Central and believes that since this property is bigger and better condition, we should be able to get at least $1300 but hopefully $1400. I understand this is very high rent for Toledo and rentometer or active listings don't support that high of a rent especially in that area. Asking price is $75K and at that price I really need it to rent at AT LEAST $1200 to make sense. So what do you guys think, go or no go?

 Well the reason Im asking this question is because I don't really know when it makes sense to ME..