All Forum Posts by: Account Closed

Right. That makes sense, but how would that affect your refinancing options?

I've been looking into properties in Cleveland, both SFR and MFR and it seems like the majority of the value add deals that are available are concentrated in the SFR sector. I'm curious to know if anyone else has noticed this or if my analysis is off. Theres still some great stuff out there for MFR but if you're looking to add value, seems like SFR is the way to go.

Thanks!

Hey BP, 

I'm analyzing potential deals and seeing some annual taxes that seem higher than other properties at the same listing price. What does this mean?

When getting a conventional mortgage for an investment property with value adds, would it be more beneficial to start with a 15 year mortgage and then refinance 6-12 months later with a 30 year? I hear a lot about starting with private money lenders and hard money lenders and then refinancing to long term conventional loan but what is most advantageous when starting with conventional?

Thanks!

Hey BP, 

I'm relatively new to the site, currently using it as a great resource to learn. I live in Oakland, Ca and am formulating my strategies for out of state investing. I'd like to offer my time to help any other Bay Area investors. Could be office work, analyzing deals, etc... I'm open to most anything. 

If you need a hand, get in touch!

Thanks, 

Martin

Hi BP. 

So, I'm looking at a possible deal for a duplex. It's looking like I may be able to get it for 80K and I'm putting 20% down ($16,000) with a conventional loan. After closing costs and some minor cosmetic fixes I'll be in $20K. The ARV is $115K. It's currently rented at $850 and $825 for each unit so $1675 monthly. Management fees are a typical 10%/month, mortgage $442 (including taxes and insurance, $100 water/garbage for a total of $709 in monthly operating costs. I'm at $966/month, $11,592/annually. Does that actually make my ROI 57%? I feel like that can't be right.....

What am I missing?

Thanks!

Thanks Brandon, I think I'm starting to get it. 

But, for my first property, wouldn't it be difficult to find a Private Money Lender? 

Lets say I find a Single Family 2/1 for between 50-70K in a neighborhood where the comps are 90-120K and rent is going for 1,300/month. So this property needs some work (cosmetic, paint, updated fixtures, landscape, hip styling) and I can get a loan for it and pay for the rehab expenses out of pocket. Would it be better to start with a 15 year fix and then refinance with a 30 year?

While I know this isn't the ideal BRRRR situation, would it be a decent place to start for a first timer? Just to get the ball rolling and generate a track record.

Thanks!

Hey BP community, 

I'm trying to get a handle on the BRRRR strategy and although I think I've got it I have 2 quick questions:

1.) For the initial loan to obtain a property, does it make sense to go with a shorter term 15-year fixed and then refi to a 30-year fixed after 6-12 months?

2.) What are your thoughts on buying a property that currently has tenants? Good for the process or does that just get in the way of the rehab/refi part of the strategy?

Thanks!

I'm looking for a knowledgable agent in the Sacramento area with a good handle on the rental market as well. My wife and I are looking to buy an investment property in the area. Ideally something thats a little undervalued, needs some cosmetic work, and maybe has an undeveloped second unit. 

Thanks!