All Forum Posts by: Nicholas Lohr

@Edward Callaway  I'm sorry I just read your questions twice and am having trouble understanding.  I hope this clears it up.  I had the original loan out of 155,000 and when I refinanced at an appraised value of 350,000 I got a new loan of 245,000.  That new loan was used to pay off the original 155,000 leaving me with 90,000. 

350,000 appraisal after rehab (known as "ARV")

bank loans 70% of 350,000 which is 245,000

245,000 - 155,000 = 90,000 

The 90,000 goes to the next deal.

@Marlon Johnson my first was a duplex. Here is a link to a thread with the full story.  See middle of the page for my full description. https://www.biggerpockets.com/forums/67/topics/427862-questions-about-brrrrr-method

I have 14 now. (9 apartments, 2 houses, 2 townhouses and 1 convenience store) 

Most new investors don't have even close to enough cash to buy a piece of real estate without borrowing. I know I sure didn't. 

But to answer your question, yes it could make sense to do that if you have the cash. Don't forget you need the cash to do the renovations too.

@Marty G.  "Issue Fixer" = person who fixes things. (electrician, plumber, landscaper, etc...)  I guess that meaning got lost in writing?

p.s.  duplex = $250 per square foot. and thats me being the GC.

(i am in CA though)

I just built a duplex.  Excuse me, I'm still building it. I started the process in April 2017. Again it's still. being. built... 

I bought an existing 6-plex apartment building in February 2019. As of Oct 1 2019 all 6 units and renovated, re-rented, stabilized, and done. 

Catching my drift??

I'm in CA and here's a checklist of all the things that I needed to get. I originally forgot to get the soil report which pushed my project a full month! This is for a project to build 2 new townhouses.  Some of this will be different for your particular area. 

This is roughly in the order that I had to get them too. 

- permission from the planning and zoning desk

- topographic map from a civil engineer

- Building plans and elevations from an architect

- Site plans from Civil Engineer. All wet utilities and points of connection. Also a drainage report.

- Structural plans and calculations from a structural engineer, foundation with footing details, all joist and rafter sizes and spacing, and roof framing.

- Trusses from a truss company, then to be approved by the structural engineer with truss calculations to be done.

- Indoor sprinkler plans with hydraulic calculations and manufacturer spec data sheets. I had to go to the town and get a water flow test before this as well. You prob won't need these for a SFR.

- Gas utility meters, needed to figure out where these would go.

- Soil report from a geotechnical engineer. Structural engineer needs to sign off on this too.

- HVAC drawings from HVAC contractor. CA energy code Title 24 consultant needed to approve of these.

- Electrical layout plan from an electrical engineer, both inside and outside electrical.

- Sections from architect, Longitudinal and Transverse.

- And last but not least the CA energy code, Title 24 Part 6. Will be different in your area but most likely needed. This is a consultant about the energy the buildings use.

That seems way high to me.  Most people go 1- 4 units as their first go and unless you have some special situation thats outside the norm, I'd say you do the same. I think it might be hard for a no track record first timer to take down a 20-30 unit.

I own 14 units and with an iPhone and cozy.co for rent payments I don't understand why anyone would pay for a PM.  I could see it getting out of hand over 50 units but I personally could handle 3 times my current "volume" with those 2 things no problem.

Tenant calls / texts with issue, I look up issue fixer with iPhone, issue fixer goes and fixes the issue, I pay issue fixer with card over the phone. Easy peasy! (this happens maybe once per 2 months btw, with 14 units)

And by using cozy.co, with good and heavily prescreened tenants, just like we all learned on the podcasts, the rent collections are no problem at all either. 

I used to work in restaurants and the amount of work I had to engage in on a typical insanely busy 2 hour lunch shift FAAAR exceeds what I have to do every 2 months.  I can handle working the phone and computer from time to time rather than blowing money on a PM.

@Greg Dickerson thanks Greg. When you say this, "exemption with the SEC," are you referring to an exemption from having to register it as a security?