All Forum Posts by: Nick Sheveland

Hi BP Family! My mom and stepdad are wanting to sell their house and are worried about selling due to having a few unpermitted add on's. This is a 3/2 In 78757 buit in 1958. There is a 385' living room, 12x35' back porch overhang with cement pad under It, 16x25' morgan building shed, and a 8x10' shed. None of which are permitted. How would they go about selling? I've heard of "knocking it down and rebuilding with permits," but that seems counterproductive. What steps should be taken in order to make It market ready?

Listen to the podcasts religiously, analyze at least one deal a day at least. The big times say to analyze about 100 deals before you pull the trigger that way you know your numbers and know what a deal looks like. Don't fudge numbers to make a property work! Leave emotion out of it! Figure out your financing and get pre-approval. Also find a real estate agent that IS an investor and have them set you up with auto listings for the type of product you're interested in. Use those as practice for analyzing and getting to know your market at the same time.

6-9% from everything I've heard.

So what's the question here?

What area is this for? Richmond I assume? 

For starters I don't know anything about your market. How sure are you on your ARV? How did you come up with that number? I'd ask an agent and property management company in that are their opinion on your ARV.

That interest rate seems very high! What type loan is that? Hard money I'm guessing? Try Private Money if you can find it or call around to local smaller banks and tell them what your doing and ask what loan would be suit your needs and ask what their rates are.

Also I personally thing your Vacancy, Repairs, and CapEx is low. Again ask a Property Management company what they feel are the correct percentages for that type product in your market. In my market here in Austin, Tx depending on the house type, condition, and part of town I would say usually say Vacancy 7-8%, Repairs 8%, and CapEx 7-9%. Each market is different though.

A good property management in your area will be able to help you with most of your questions.

There are a few of them. Google / Youtube BiggerPockets Podcast Mobile Home Parks. I don't remember which episodes they are. One of them is somewhere around episode 268 give or take a few.

@Costin I. Wonderful! I work in Lakeway till 6 so if I can make it Thursday I'll be there. 

Would it be okay to show up a little later, maybe 7-7:30 ish?

Compare it to like homes in your area on craigslist and also contact an agent that is in your area and they can also give you a very good answer on how much your home is worth.

@Steven McPherson I take it you are looking for 3/2 SFR's? Also what grade of product are you looking for? Are you looking for say a C, D, F classed property? Austin does have some sketchy/war zone areas that I don't recommend. Based off of what you've said so far, West Austin(West of Mopac aka Loop 1), is out of the question. It's very nice and newer for the most part. East and South Austin are closer to what you're looking for it sounds like. Pflugerville, Round Rock, and Cedar Park (just north of Austin) are the areas that I would recommend looking in your price range.