All Forum Posts by: Luke Harrison

I am currently DIY renovating a property to BRRRR. I was there at noon yesterday and came back at about 2pm today. When I got there the door was ajar. When I went into the house, it didn't immediately seem like anyone had been in the house. Upon further inspection I started noticing missing tools, and of all things a missing toilet which was still in the box (who steals a toilet)! After making a police report and giving a full list of stolen tools and inventory it was approximately $500 worth of missing items. Also around $3k-$4k worth left behind (not stolen).

I proceeded to go to home depot to buy a new door handle and deadbolt installation, as I was walking in I decided to check my pro Xtra account. First thing that popped up on my account was... You guessed it, a returned toilet! I went straight to customer service and told them what was happening and what had happend. Found the exact time the toilet was returned, and after further inspection of the transaction found out that the return was credited to my home depot card, lol. So they stole a toilet and returned it and I got the money for it. Can't make this stuff up! But this is not where the story ends.

After telling my story to the store manager, he asked if I came for a new toilet. I replied no I came to buy a new door knob and deadbolt. The manager said ill follow you over there I feel bad for you so "ill mark it down for you". So he suggested a deadbolt drill kit for me, and thats when I remembered "shoot I have no drill it was stolen". The manager laughed and said "oh yeah I forgot". He then asked what kind of drill it was so I told him. He grabbed a new one off the shelf and said "follow me". He then proceeded to "mark down" my items 100%. He literally comped me $300 in tools. This guy is THE MAN! Made my day.

In the end I lost $500 but $120 got returned to my credit card from the thief, and the store manager gifted me $300 in tools, and my girlfriend borrowed my truck and filled the tank for me ($100). A whole bunch of hassle to break even and miss out on a day of work on my soon to be rental property. Also the police are sending a detective to home depot to see if they can get footage of whoever returned a toilet at 8:59am today. Overall I can't help but laugh at the whole thing and am feeling incredibly blessed after a very discouraging and frustrating start. What a strange and intersting day!

I don't think he will go for subject to, as he want to get it out of his name.

I am in negotiations on a for sale by owner deal. It is currently being used as a mixed use short/long term property. The property is currently being managed as a mixed use short/long term building. 2 apartments 4 hotel rooms. This market does not support the short term side of renting, but is in need of housing. I would need to convert the 4 hotel rooms into 2 more apartments making it a 4plex for long term tenants.

The  owner of the property is "open to anything to get it off his hands". He currently owes $135k on mortgage, and wants to get the purchase price closer to $200k. He is willing to owner finance, but his bank won't let me assume the current mortgage. I can probably negotiate it to $175 or under. Market rents would probably be around $900 a unit, plus coin operated laundry. Monthly rents+laundry would be in the neighborhood of $3,800 a month when reno is complete.

Is there a way to make this a no money deal for me other than renovation costs? what options should I be offering the seller as far as creative finance goes to make this as low cost to me as possible? This would be my first owner finance/creative finance deal.

I currently own, and self manage 18 units, and do all of my own renovations for context.

I am looking to refinance my single family home in Mariposa California. I have been stuck in limbo waiting for an appraisal company to accept the contract to appraise my property. I have paid for appraisal 2 separate times, and had the money returned to me, and put in requests with 4 other appraisers, still no luck. Anybody else running into this issue, and has anyone figured out a solution, or have any recommendations?

@Joseph Crunkilton in my experience you just need to know your market very well to have a good grasp on the ARV for your potential BRRRR. Or else find an experienced realtor, or investor in the market you are looking to buy in. If you aren't confident in your knowledge of that specific market, find someone who is, and learn your market through them, eventually with their knowledge and repeatedly analyzing deals for yourself you will build confidence in your ARV's.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Jamestown.

Purchase price: $58,000

We were able to buy this duplex with $0 of our own cash as a product of completing our first successful BRRRR. We used a cash out refinance loan on another duplex that we own, and let our equity work for us to add another cash flowing asset to our portfolio. With the money we had left we also secured and purchased another duplex that was an reo foreclosure. 3 closings all done in the height of the Covid pandemic, it was very nerve racking, but we are very happy with the acquisitions.

What made you interested in investing in this type of deal?

We wanted to put our equity to work for us.

How did you find this deal and how did you negotiate it?

This was listed on the MLS, we made a low offer when we first saw it, the offer was not accepted, and they took another. After the pandemic shutdown started in March of 2020, the buyers opted out of their contract and the duplex was put back on the market. We came back with a stronger offer, and they accepted.

How did you add value to the deal?

With a basic remodle of the lower unit, which brought the unit to market rent.

What was the outcome?

Still holding the duplex with full occupancy since purchase, other than the couple of weeks it took, to fix up the lower unit.

Lessons learned? Challenges?

The lesson learned was that the BRRRR strategy is something that can actually work, and isn't just something you read about or hear on the pod cast. We did it, and are now in the "rehab" portion of a second BRRRR that brings us to 11 total units, and we can't wait to get to the "repeat" section for a 3rd.

@Curt Davis we have bad winters here in the snow belt of western New York. The roof and windows will need attention before doing the finish work inside. We have maybe another month time frame to get someone on the roof repairing it. Days without rain are far and few between, then the snow will be here very shortly after.

@Jonathan Styer other cost as well. Alsl needs new windows, and there is a bat issue, and leaking in the valleys of the roof, qnd around chimney, so the interior work would be put on hold until roof leaks are fixed. The roof seemed to be in good shape when we first looked at the house, but after 7 months of delays, due to the bank, and covid, water damage became apparent after finally closing.

My Fiancée and I bought a small multi family (duplex), REO, in our little town. We secured the home with a cash purchase, that we borrowed from a private lender. The strategy is to BRRRR this house, and pay the lender back with his interest, after refinancing.

Our issue is that he doesn't want to be into the house for anymore money, and our budget just got expanded due to needing a new roof. The issue we are running into is that we don't have the cash on hand to re do the roof before winter hits, and are looking for a loan to cover our rehab.

The numbers look like this. $27k purchase price. $30k rehab, (which just got expanded to closer to $45k) with an ARV of $90k. Each unit will rent for $650 minimum, $1300 total. We have done deals like this before in the same town, and are confident in our numbers. We will more than likely have to leave money in the deal, but are ok with that as it is a long term buy and hold.

Any ideas, or recommendations on the type of loan, or a loan company that would best suit our situation?

@Patrick Burke I also invest in western New York. If you are just getting started, having an on call handy man is not necessary. Reasons being, that calls from tenants late at night are very rare, there are not many issues that can not wait until the next day, and if you only have a few units that you are self managing, the calls will be few and far between if you buy right and screen tenants thoroughly. Also make sure any issues are fixed before you lease an apartment or house to minimize any issues. You will not hear from an ideal tenant at all, as long as your property is well maintained, and managed properly.

Basic what I am trying to say is worry about closing your first investment property, and tackle any issues, or questions as they come. It is how most investors start.

Hope this helps, good luck.