All Forum Posts by: Nick Moore

I currently invest in an area where there are a lot of SFH's and Duplex Conversions (SFH-->Duplex). Duplexes usually go for $100-$115 per sqft, while SFH can go for $140-170. Rent is good here, but surely people have thought to de-convert and flip, or at least refi and rent out as 3/2 or 4/2 SFH?

I'm not seeing this happen a lot, which makes me think the de-conversion process with HVAC and plumbing must be expensive? Anyone have experience with this?

Can a self-representing real estate agent house-hack with a 3.5% FHA and get 3% back on the tail-end through commission? I'm clearly missing something here, right?

(Obviously being over-leveraged could be a concern, but just humor me.)

Guys - I HAVE to stop letting people borrow my books. Currently can't find my BRRR book and am just too zapped to make sense of what the internet is telling me in regard to Cash-Out Refinance.

Long story a little less long, my wife and I are looking ahead to acquiring our second investment property. Since we just got our first property in November, it might even be too early to talk much about leveraging equity.

Instead of typing out all the things I know about this stuff, I'm just going to play the noob. My wife and I scooped up our duplex at $109/sq ft with renovated *SFH* going for $150-160/sqft - obviously not a 1:1 comp, so this may not be the best example. Ignoring that stipulation, let's say we finish remodeling/reno at the end of March and it goes from the market value (235k) to 334k. We paid 8k for a 3.5 FHA DP, so not much equity in that sense.

So obviously I'd like to know if that's even worth pursuing, but honestly I just want to wrap my head around the nature of the Cash-Out Refi - how would this be done if it actually (I don't think it will) appraised around 334k? I'd really like to focus on how the mortgage would be different, because that would affect the cash flow, right?

Signed,

Sorry Sometimes My Brain Is Mush Because 11th Grade Students

I'm tracking with you on not everything needs to be positive, rainbows and sunshine. I've done too many south alabama two-a-days to believe in participation trophies. However, the posts that have been most encouraging in regards to conveying the weight and risk of REI have been the "here's all of my mistakes" posts. They're horrifically sobering. To newbs, this post might feel condescending - and anyone in education knows that's a one way-ticket to "yeaaa I'm out."

But after teaching yet another semester of 11th graders, I know as well as anyone - when you gotta vent, you gotta vent. Just don't be "that teacher" and do it around the students.

I'm glad I didn't read this post prior to making my first REI purchase a month ago. There are people like this in every sphere - overzealous guitar learners want to buy expensive amps and pedals to "sound better" rather than practice scales, people buying their first power tool can't "just get the drill" and so on. That's life.

However, it's widely known here on BP that the first step is the hardest for newbies. This kind of post can make those already bogged down in analysis paralysis even less likely to pull the trigger. When I came across posts like this prior to purchase, I would assume it was talking about me. It didn't matter that I read the whole line of BP books, watched hours of YouTube, talked with investors, etc. despite having that stipulation in your post. BiggerPockets strives for a positive culture - one without complaining - because that's the only thing that helps those stuck in analysis paralysis eventually take the next step.

And as for the "bros" (definitely feels like millennial are the only targets - y'all do know we don't all say "bro" right? ), they're going to do bro things anyways. Capitalize, don't complain..........

.....bro. whoops

@Jared Schofield Hey Jared, since I've only been immersed in the REI world for a few months, I can relate.

Brandon Turner's book on REI is not an Amazon bestseller for no reason - and all of the accompanying BP books have been just as user-friendly!

But the ticket to the REI language learning fast track (I do apologize, this is the science teacher in me) is gaining experience and immersing yourself in this new world. Books helped me big time, but listening to podcasts and experienced investors (who are patient with noobs and excited about teaching) use the language in conversation helped me solidify what I was reading at an accelerated rate.

Play around with some Bigger Pockets Calculators, and when you aren’t sure what it’s asking for, look up that term! That helped me a lot, too!

Those books, YouTube videos, podcasts, investor conversations, and actually doing a deal helped me and my wife close on our first duplex in November. Hope this helped!

@Kevin Charles Also - I’ve lived in 38112 since March and can tell you a lot about the area. @Curt Davis is right - it’s pretty rough except for a patch or two.

@Kevin Charles Bike Paths can be a good measure of what's to come in a lot of cities (Birmingham, Atlanta, etc) but after speaking with seasoned Memphis REI veterans, neighbors, and living a few feet from the bike path myself, I'd say be careful in using that as a pulse for where to buy. Memphis seems to go by a different set of rules when it comes to buying in the path of progress.

It seems that networking and asking around at local venues are the meat and potatoes of finding a pulse for a neighborhood’s current and future Supply and Demand.

Are there any other strategies and tips for staying updated with future city/business development plans, new market trends, etc?

(Grammar Nazis: I apologize for the plethora of prepositions in this post.)

@Forest Skufca man I never came back to this, but this post was actually super clutch. After riding through the neighborhood with this in mind, I felt like I gained experience without having to actually go through an “experience.” 😅

My wife and I are under contract with a duplex in Cooper Young (#househacking🙌🏼) but after all the craziness sets aside I’d love to connect and talk about past and future deals??