All Forum Posts by: Parker Chrisman

Personally I would think to go with the property history of income rather than what AirDNA says, especially being that the gap is so large. Have you talked to others in the area doing the same thing? 

I'm definitely in need of some help/advice. Rookie investor with one rental property that was a "live in then rent" so haven't actually purchased a property solely as an investment yet. In all of my education over the last couple years, I've focused on SF and SMF housing. I already have a market(about 3.5 hours away from where I live) where I want to invest and an agent. I just came across a 12 unit apartment building for sale with asking price of 200k. That already jumped off the page to me and have been doing nonstop research trying to find out as much as I can. The property is in poor condition as 4 or 5 of the units aren't even livable at the moment and the owner is trying to evict another tenant for nonpayment. Current monthly rents total a little over $2,000. Seller is just trying to dump the property as they aren't interested in owning rentals(it's a widow whose husband bought the building years ago) so I know I could probably talk to the selling price down a bit. Complex isn't in a great area but went on HUD website and got their valuations of fair market rents as would probably rent to Section 8. Total monthly rents would be almost $8,000 based on the HUD numbers with all 12 units rented. EVEN with putting 200k of renovations into the property it would still cashflow well. Based on my calculations, with the HUD rents and a 9 cap rate, the value would be $800,000. My questions are;

1. Do I pass on it simply because I have been studying up on SF/SMF and haven't "planned" on buying an apartment this size at least for a couple years(planning on doing "The Stack") or do I go for it since it has the potential to be a killer deal?

2. Should I go HML and BRRRR it or would I be better off getting a construction loan with renovation costs in the loan?

3. I don't have any experience dealing with contractors so for something this large and also being 3.5 hours away should I look into hiring a project manager? I could potentially approach my agent about doing it for some extra cash.

4. At what point during the process do I have contractors go to the property and give me estimates? Before I put an offer in? When it's under contract?

5. What all am I missing in the valuation process and analyzing the deal? Seems almost too easy for me and an absolute no-brainer yet it has been on the market for over 2 months...

I'm on board with @Eddie Gonnella and would love to know what area specifically your deal is in as I also would love to drive by and see the project being done. Tip of the cap to you for finding and successfully landing this off-market deal. I feel that that will be my weakness as I progress through my investment journey. Well done

Hello Bigger Pockets community,

I'm a newbie RE investor in the Richmond, VA area. Looking to also invest in the Southwest Virginia market(Radford, Christiansburg and Blacksburg) as that is where I'm from and have lots of knowledge as well as contacts. Open to all investing strategies but will mainly focus on buy and hold and specifically BRRRR. In the process of analyzing deals right now to set up some showings this weekend and hopefully start making some offers. Been listening to the BP podcasts and audiobooks for the last 2 years trying to soak up as much knowledge as I can and now feel good enough to jump in with both feet! Would love to meet up and connect with anyone in the Richmond area or the Southwest Virginia market.

Hard to argue with either strategy. I will, however, point out that there's probably more risk in doing the live-in flip as you have to come up with a scope of work, rehab budget and project post-rehab comps to make the best returns. Whereas renting out extra rooms or the other side of a duplex you don't HAVE to accurately estimate ARV in order to have a good deal. It's all about what's important to you though. Do you want to potentially have a lump sum payday after the flip or do you want to lower/eliminate your living expenses for the next X years by renting out rooms or other unit?

Thanks for the tips

Good evening Bigger Pockets folks,

My first post on here so apologies if this has been covered elsewhere. I'm currently going through and analyzing some deals and hoping to make some offers in the next week. When doing my numbers in the early stages, how do you determine how much to account for in rehab costs if you haven't even seen the property yet? Is it just simply going off of pictures and accounting for cosmetic fixes? Any advice would be appreciated.

Thank you