All Forum Posts by: Noah Garza

Hello everyone hope all is well, Does anyone have experience investing in Kankakee County? I see a lot potential opportunities for buy and hold SFH and wanted to know about the red tape and nuances dealing with the county such as getting permits, inspections, fees etc. any feedback will help, thank you.

@Basit Siddiqi yes I'm open to working with anyone, and yes I should have clarified that I'm looking for a CPA who specializes in Real Estate taxation. After reading the book on Tax Strategies for the Savvy REI and the book Advanced Tax Strategies both written by Amanda Han and Matthew MaFarland that just working with any CPA will just not be suffice. Thanks for reaching out.

@Dan Nelson im looking for a CPA to help with tax strategies, and also a lawyer to discuss setting up a partnership and help when it comes to closing. @Natalie Kolodij thanks for the recommendation

Does anyone have a recommendation for a lawyer or a CPA in the Chicago Land area? Thanks in advance

@Jones Larhnimi Sorry for the late response, @Nick Van Sicklen will be able to give you better insight on the rules and regulations in Stockholm where I am unfamiliar about this area, but yes all banks are different some wont allow you to refinance until you've had the property for at least a year. They want to see that the property is a good investment. Some banks let you refinance right away you just have to do your homework and make some phone call. Call a bank and ask for someone in financing and ask questions. Hope this helps

@Fredric Sjöberg Forewarned I'm new to real estate as well but through research I've found several things to be aware of when using the BRRRR strategy, but not knowing the lending or housing rules in Sweden none of this may apply

First when using the bank some banks here will not finance a deal if the condition of the property is not up to par. There are some Government programs that will finance the deal and lend you the money for the rehab on distressed properties but it should be used for your primary residence and not an investment property so this strategy is great when buying a multi family home and house hacking. I only mention this because to make the BRRRR strategy successful you need to buy properties under market value "rule of thumb at least 70 percent under" rehab them and through forced appreciation bring up the ARV so that way there is enough equity in the deal where refinancing makes sense and you can get more of your capital back out of the deal. This strategy works great if you can find the right deal and it usually is through buying crappy houses and rehabbing. When you buy properties at market value with the 15% down there probably wont be a lot of forced appreciation through rehab so when you go to refinance the new mortgage might cause you to cash flow negatively.

Second is finding a lender who will refinance for you, this is a process in itself some banks have seasoning periods which you have to hold the property for a certain amount of time before you can even refinance as well as other hoops to jump through so do your homework.  

Short story long just make sure you find the right deal and analyze the property carefully, hope this helps

I want to rent out, or rather I'm going to rent my properties to Section 8 voucher holders. I've weighed the risk reward and I believe it's a win for me. I'm not an economics major or pretend to know a lot about the economy but since wanting to get into real estate investing I've been studying the market and the trends. Some of the most reputable economist are saying we are at the 11th hour and may be headed past a recession and into a depression. That's scary, but I guess my question is could you see a scenario where the Section 8 well dries up? Is this even feasible, or is it not even possible? Any thoughts or feedback would be helpful and much appreciated!!

@Andrew Postell thank you for the feed back, that is a great point about not trying to have the nicest property. I guess in the end its all subjective, I've read different articles and all have different numbers as far as returns go. Some state a kitchen remodel you can expect between 57 to 70 percent return on its cost. I guess in the end if I'm $5,000 to $10,000 off on my expected ARV it wont be a total lost since I'm buying and holding and then refinancing. I just will be leaving more capital in the deal, now if I was trying to flip then that would be a different story. Thanks for the quick response!

I have a question regarding finding out or best estimating a property's ARV. After reading many posts and watching some videos it seems I get the same answer. Best way to get an agent to find the best comps and take the average of the closes three, or use some online realtor site and get comps from there. I understand the process of finding properties that best match your subject properties attributes such as Sq. footage, bed and bathrooms, garage space and other amenities but the problem I'm facing is that in the neighborhood I want to invest in I can't find any SFH that have been sold recently that have been renovated like I want to do. The neighboring houses are in good condition. I am gonna do a whole house remodel new paint, refinish the wood floors, and really focus on the kitchen and bathrooms. It already has a newer roof, electric and HVAC system. Realistically how much value will I get out of making these renovations? What is the cost vs return value on a remodel? I know there is a point where there will be diminishing returns but every rental property I buy want it to be as if I was gonna live there, is that unrealistic? I am not asking cause I want to flip right away I want to buy and hold and then implement the BRRRR strategy and want to get the best possible ARV. Sorry for the long winded question but any feedback will be appreciated.

@John Warren that is great to know. I'm only interested in investing in SFH as of right now just to get my feet wet and eventually move into commercial property. Thank you for the advice