All Forum Posts by: Mohammad Khan

Hi Kevin,

I am willing to leave 150K in equity if I have to refinance it. Talking to manager STR property managers, I found that the demand was still strong, but the upcoming recession is creating uncertainty.

Can I refinance the property based on STR revenue? If so, what are the requirements?

Thanks

Mo

Hi BP,

I went into escrow on a fixer in palm spring recently. My initially planned was to fix it and put it on short-term rental. But given the recent shift in the market I am back on due diligence table. The Palm spring market has started to show slow down and I see many sellers are reducing prices in the past week or so. 

I don't know if the property is still a good buy as I am not sure how to adjust the ARV and if putting the property on short-term rental (Airbnb and Virbo) after fixing it is still going to generate positive cash flow given the economy downturn coming up due to interest rate hike and as Fed planned to increase the interest rate couple more times down the road.

Some of the pros and the reason why I am having hard time letting go this deal: I was able to get this property at 5% down and at 3.87% on a 7 years arm. The property is price is 940k, the original ARV was 1.45M and the repair cost is 120k

Just a little bit about me. I am a long-term real estate investor I owned couple multi-family properties that positive cash flow. This Palm spring deal was going to my first BRRR and short-term rental deal, so that is making me nervous. I am very passionate about real estate and I found my passion in BRRR investing. I love analyzing deals and due-diligence and I definitely see myself a long-term BRRR investor.

Thank you in advance!

Hi BP,

I went into escrow on a fixer in palm spring recently. My initially planned was to fix it and put it on short-term rental. But given the recent shift in the market I am back on due diligence table. The Palm spring market has started to show slow down and I see many sellers are reducing their prices on the past week.

I don't know if the property is still a good buy as I am not sure how to adjust the ARV and if putting the property on short-term rental (Airbnb and Virbo) after fixing it is still going to generate positive cash flow given the economy downturn coming up due to interest rate hike and as Fed planned to increase the interest rate couple more times down the road.

Some of the pros and the reason why I am having hard time letting go this deal: I was able to get this property at 5% down and at 3.87% on a 7 years arm. The property is price is 940k, the original ARV was 1.45M and the repair cost is 120k

Just a little bit about me. I am a long-term real estate investor I owned couple multi-family properties that positive cash flow. This Palm spring deal was going to my first BRRR and short-term rental deal, so that is making me nervous. I am very passionate about real estate and I found my passion in BRRR investing. I love analyzing deals and due-diligence and I definitely see myself a long-term BRRR investor.

Thank you in advance!

Hi BP!

I'm looking for reliable and professional contractors to work with in Palm Spring. I would love to receive recommendations from you.

Thank you 

Mo

Hi BP

Looking for advice on finding BRRR deals as an OOS investor. Are there any specific cities/markets where I can still find great BRRR and STR deals? Or any upcoming markets I should consider investing in?

I can no longer invest in the state I live (California ), so I am thinking about investing out-of-state, where there are still opportunities to build equity and positive cash flow. I would love to hear about your experience as an OOS investor and where you are investing, and why?

TIA

Mo

Hi @Dan Heuschele

Thank you for your message, are you referring to what my plan for the rehab loan?

My plan is to get the loan from a hard money lender as I have prior experience rehabbing my rental properties. 

After the rehab and construction are completed, I going to refinance the property with a conventional loan because I will be able to build 15 -20% equity per BRRR Calculator. In addition, I have compared similar comps to estimate the ARV and I am also working very closing with my refinance lender. I am taking a conservative approach when estimating the ARV as it is difficult to estimate the price appreciation of the property because of the new construction

Thanks

Mo

Hi @Christopher J Driscoll

Thank you for your feedback. My initial plan was to build two ADUs but the city did not approve that plan.

So I changed my plan to building a dwelling unit and an ADU! I would love to connect with you to share more details about the project and get any insight that you can offer.

Also, your project sounds very exciting and I would love to connect with you and learn more. Real Estate investment is a passion of mine and I’m looking forward to making great connections!

Thanks

Mo

Hi everyone, 

After 4 years of being a landlord and owning a few rental properties, I have decided to take on a more complex project which requires building a dwelling unit, ADU and enclosed parking garage. I found a multi-family property in the greater Los Angeles area. The property currently has two dwelling units and is in a much-needed rehab. Also, I am planning to build a dwelling unit and an ADU. So far I have confirmed with the city that I am allowed to do the construction. Also, I have shortlisted a contractor that I want to work with on this project. Just a bit of a background about me. I am a finance professional(nerd) and I have been working in the industry for 10+ years. My strong suit is working with people and budgeting and forecasting and running my business. Recently I have built a real estate BRRR calculator model in excel that anyone can use to calculate the cost of the project and calculate ARV, interest, net cash flow, ROI (5-year forecast), Cap rate etc. [Solicitation Removed by Moderators]

I am reaching out to you to see any Guru out here who can guide me through the project. Any help you can provide will be much appreciated. I am very motivated to take my real estate journey to next level and eventually quit my 9-5 job and do real estate full-time.

I am very passionate about real estate and I am loving my real estate journey so far. 

Best Regards

Mo 

@Cameron Braig

Thank you

Hello everyone,

I just moved to a new city (LA) and I am thinking about buying investment properties in the area. I am seeking your guidance on how I go about researching the market? Some of the houses I have looked at through my realtor have decent cash flow, but when I checked out the zip code of the properties on USA.com I see a negative growth rate in those zip codes. Also, the real estate agent I am working with thinks that those properties are in upcoming neighborhoods. my concern is that how can I validate that a property is indeed in an upcoming neighborhood when USA.com shows a negative growth rate? Also, How do I identify an upcoming neighborhood. I have searched this question on the internet and I found that if there is a renovation or new construction going on in the neighborhood is a one of sign. I am curious to know how you go about searching for an upcoming neighborhood?  Also, I am wondering how many of you rely on USA.com and how accurate you think it is? I have used USA.com for my prior investment properties purchases and It was very helpful in the past.