All Forum Posts by: Matthew Becker

I live in LA and am looking to BRRRR in the $50-$75,000 purchase price range. Obviously my backyard is out of the question so I'm open to options, geographically.

Would love to connect with any realtors or wholesalers who could offer insight on their particular market. I'm most inclined to buy in CA, AZ, or TX, as they are an easy flight away, but open to other suggestions as well. Thanks in advance for reading this and for your time!

Thank you all so much for the insight! @Michael Noto @John Corey

I am looking to (finally) make my first deal on a 3-bedroom single-family home in a college town for about $80,000. But I have a big question.

My intent is to:

1. Purchase with $80,000 cash
2. Some light rehab to create 2 more bedrooms, and fully furnish ($15,000)
3. Turn into a 5-bedroom rooming house for college students
4. Get appraised based on income it generates ($500/bedroom), aiming for at least $130,000 ARV
5. Refinance and take $80,000 out

I am hung up on Step #4. I've read that multi-family properties are appraised based on the income they generate, and single-family homes are appraised based on comps. Do I have any chance of getting a bank to appraise this single-family home based on income and NOT comps, once I've fully converted it into a rooming house, fully rented it, and secured all the necessary city hall approvals?

Thanks for reading!