All Forum Posts by: Matt Silverstone

@Łukasz Juraszek i don’t know the exact answer for this property but make sure to check it’s not in a flood zone either before purchasing or simply know what also goes into that type of investment opportunity (flood insurance and less resale value/appreciation)

@Luis Moreno I’ll be visiting Indy next week. Would love to meet up! I’d be down to join Friday evening if everyone is available.

@kieth, do you view paying the interest on the extra rehab funds you wouldn't be using from your HELOC and/or when you take out the delayed financing?

Alt Scenario 1:

Would your outlook change on adding in $20k-$30k in rehab monies (vs. $15k) if it wasn't coming from a HELOC but cash that was just sitting in a bank to allow for any additional rehab funds to be baked into the delayed financing?

Cons: Delayed financing allows you to take out 75% ARV or HUD, whichever is less so potentially going over budget on rehab wouldn't allow you to take all your money out either way (which still is not the worst and a BRRRR-Hybrid)

Scenario 2:

Keep your rehab at $15k and pay cash out of pocket that you indent to keep in the deal knowing your purchase+$15k rehab is close to the 75% ARV and assume any $$$ over your rehab budget you'll be keeping in the deal.

Hopefully a buyer doesn't need to go over budget and entertain scenario 1 or 2 but just throwing it out there to understand alternatives. Always best to go into a deal knowing your options. thanks!

Bravo, Keith! Thanks for sharing your story. I enjoy reading the journey people take on their deals, obstacles they faced and wins!

Hello fellow investors/professionals - Bringing this thread back to life :)

I've come across a couple of properties in the Ravenswood area. Curious everyone's current perspective of the area, pros/cons, etc. I've done some research myself on Niche.com and other sources. Would appreciate a local's perspective or a REI who owns in the area. Thanks!

Best of luck, Josh. I look forward to seeing updates on your pursuits. I'm a new OOS investor with my eyes set on Indy. Thanks to a lot of people already on BP & the downtime I've had during COVID, I've started to make great relationships with folks and carry out a bunch of new conversations/connections. Would love to join any virtual Indy meetups. Always open to chatting!

Congrats on the BRRRR, Brenton. Curious if you have any new updates around the project? How have your renters been during COVID? How has your management been? Anything that has popped up for you?

I am an investor entering the Indianapolis market. Great to see the success like yours.

Thank you both for the reply. I need to do some HW on the numbers but this certainly helped! 

What would you do in this scenario?

Helping a parent whose primary residence is paid off and has appreciated nicely in Southern California over the last 20 years. Looking to retire soon and downsize. Home is in a good market with public schools and high demand.

Option 1: Simply sell home, downsize and purchase a smaller home and invest spare cash (pros: hassle free and homes are getting top dollar in the area, cons: feels like there's a lot to be leveraged with the home and would be missing out on future appreciation to "keep property in the family")

Option 2: Rent the home and take HELOC or REFI to take out equity for smaller home purchase. (pros: cashflow from the rental + $$ to put into a new home., cons: the home would require some upgrades to appliances and backyard to get top rental dollar)

Leaning towards option 2 and like the idea of managing a property or two for steady cashflow. Also, don't mind spending the time and effort. Is there a better option people would suggest given the situation at a high level?