All Forum Posts by: Account Closed

I am going through some analysis-paralysis and second-guessing myself, as this will be one of the biggest financial decisions my husband and I will be making - aside from buying our primary residence - which I wish we could do all over again with what I now know. I can make all kinds of excuses to talk myself out of this. The numbers worked, but now I'm second-guessing the numbers. I have no experience with any rehab projects and have even shied away from re-grouting our own bathtub tiles for fear of ruining something. My offer is going to be too low - I'm just wasting everyone's time. All I see right now is a number of possible mistakes, failures, and losing a lot of money (for us). I know this is just part of the process for us - and hope to be back on top of everything again as we move forward.  

I read everything in this forum to learn as much as I can, and I love the success stories; however, I would love to hear all about the other side. I think a lot of us can learn from others' missteps and would love to read about them as well. 

As my husband and I try to move forward, I would love to hear some of your biggest/baddest lessons learned in REI. Did you make them in the beginning of your REI experience or later, after years of experience? What went wrong? What could you have done better? How much did you lose? How did you recover?

I hope to some of you guys would be willing to share your (more negative) experiences and maybe even brag about how you bounced back and continued in REI.

Hello! We're getting closer to pulling the trigger on our first deal... we just want to be sure we get all our ducks in a row so there are limited surprises. We believe this is how things will work. Please let us know if we're missing something or have something wrong. 

Once we get PML lined up (if they are willing to provide the funds), we make a cash offer on the property.

1) Cash offer subject to contingencies on home inspection (for info purposes only) and clear title; quick close as the property is vacant. 

2) If accepted, home inspection completed with estimates on repairs/rehab.

3) Move forward with offer/rescind based on home inspection. 

4) Close on property with check in full amount (minus deposit). Will there be any other fees with a cash transaction?? What else should we expect at closing?

5) Get keys and line up contractors to start rehabbing.

We just purchased our home not too long ago with a FHA mortgage - lots of requirements and paperwork. It just seems like the cash purchase as outlined above is way too simple. What am I missing?

6) Rent property through Property Management company.

7) Cash out refinancing after 6 months to pay off PML (both husband and I have full-time jobs and will qualify based on income). 

Does this look right? 

Any additional tips or things we need to think about?

Awesome! Thank you! I may swing by the property later this week to see what kind of shape the siding is in.  I'll take pics if I see any areas of any concern.  I'll also see if I can meet up with a couple of property management companies at the same time.

Hello, BP! 

I found a property that I am considering for a BRRR and have started to research the property more in-depth. The 2 bed, 1 bath (918 sqft) SFR property was build in 1936. Gas heat/baseboard. Window AC units. Ranch with a basement and maybe an attic. Roof is composition shingle which may need to be replaced. And there is asbestos Siding - Urgh.

How much of an issue is the asbestos? Can it just be painted over or covered up? Will it be expensive to do? What about liability? This will be my first property and I don't want to get in to a nightmare situation. 

Property was last sold in 2000 for $18K.