All Forum Posts by: Michael Hunt

Hello.

We're looking to purchase our first primary residence in a HCOL area. We have a budget range (~$900k - $1.0M) that we'd like to communicate to our agent, but also wanted to let him know that we'd like to make some lowball offers to nicer places to see if we can get it down to our range. For example, we'd be offering $1.0M on a $1.1M listed place.

I was going to ask to see if we can get two MLS alerts set-up: (1) one for directly in our budget $0.9M to $1.0M and (2) one for lowball offers $1.0M-$1.1M. Is this a common tactic? What's the best way of going about this so that we don't waste anyone's time?

Thanks

Hello,

My fiance and I would like to buy a residential property in CA sometime this year and also buy an out-of-state investment property this year. Both would be done through conventional financing. We currently do not own any properties.

We were thinking of getting the residential property first in order to get the most competitive rates as it is my understanding that purchasing an investment property will require 1-2 hard pulls which could hurt our credit score.

Is buying the residential property first the smart move for financing?

Thanks!

Quote from @Alex Bekeza:

@Michael Hunt This one was unique where the tenants are still in place from those two occupied units and the units themselves are in "fine enough" shape so I honestly think I'll get the ARV I'm looking for simply based on renovating the two that needed it. Of course this concept would vary a lot deal to deal depending on the specific level of quality in each unit as is.

 Got it. Thanks, Alex. Appreciate your insight!

Quote from @Alex Bekeza:

@Michael Hunt Others have already touched on some great points but the simple answer is yes you can totally BRRRR any property regardless of unit count as long as you're buying below market value, are able to force appreciation through upgrades, and have the proper financing for the cash out on the back end.

I'm in the middle of BRRRRing a 4plex as we speak. I purchased the property with two units leased (a hair below market but units in decent condition) and the other two units needed to be more or less gutted. Purchase price was $157,000, roughtly $30k reno, and expected ARV is in the $250k + range conservatively. There was no need or cause for me to evict the two tenants in this particular scenario and it worked out nicely as their rents helped me cover the cost of the hard money loans payments until I refi into long term financing.

Thanks for the response, Alex. So for your 4-plex, are you just renovating two out of the 4 plexes and getting an ARV increase from that? Wouldnt you be able to get a higher ARV if you were to renovate all 4 units? Or is it more of general renovation (landscape, etc.,) that are increasing the ARV?

Hello,

What are some things to consider when investing in smaller cities? 

I'm looking to invest in cities with a population of 100k - 1M (with high growth rates / strong job aspects, etc.), but wanted to see if there was anything to consider when breaking it down to the following smaller categories.

1.) City with a population of <100k

2.) City with a population between 100k - 250k

3.) City with a population between 250k - 1M

Thanks in advance.

Hello,

When you BRRRR a small multifamily property (Duplex to Quadplex), do you vacate the tenants while you do the rehab portion? It seemed pretty straightforward for SFH (one tenant), but I wanted to see what the common tactic was for small multifamily properties with more tenants.

Is it common to BRRRR small multifamily properties or is it more for SFH?

Do you recommend doing my first BRRRR with a SFH or is multifamily okay if I'm interested in multifamily? For context I'm a complete beginner looking to do out-of-state investing.

Thanks in advance!

Quote from @Bob Okenwa:

@Michael Hunt

Everyone will have their own criteria, but here is something to help guide you and give you a general sense of how to grade a neighborhood. 

https://realwealth.com/learn/c...

https://morrisinvest.com/blog/...

 Thanks for the articles. As an aspiring out-of-state investor, I'm unable to physically drive around and dig into the neighborhoods. 

Would realtors typically be able to help assess the different neighborhoods by class?

How do you know whether a neighborhood is A, B, C, or D? Is there like a list or is it more just subjective based on a common set of criteria? 

Thanks!

Quote from @Erin Dreher:

Quote from @Michael Hunt:

Quote from @Erin Dreher:

Arkansas is a landlord friendly state! Duplexes do very well here. I see a lot of out of state investors looking here because of our price points. SFR and multi family is still very affordable in central Arkansas.

Is there any things I should watch out for in Arkasas (e.g., flood zones, tornado(?)-prone areas, etc.)? Thanks!

 Not so much. You really should watch out for the high crime areas. That will affect the rentability the most here. The key here is buy right outside of Little Rock not in Little Rock. Best places to invest here are : Conway, Cabot, Alexander, Bryant and Benton. Most affordable places to invest are : Jacksonville, North Little Rock and Southwest Little Rock 

Very insightful. Thank you!!!

Quote from @Aj Parikh:

I have experience with investing in Cleveland so I would definitely vouch for Ohio. There are a lot more multi family and SFH opportunities that cash flow well and definitely recommend for an out of state investor to explore this area

 What were some factors that drove you to Cleveland?