All Forum Posts by: Patrick Bergeron

Hi- I am looking at doing a flip in Mililani. I am curious about any potential barriers to look out for- timing, access/cost supplies, labor force? I’ve done rehabs on the mainland, and this would be my first in Hawaii so I want to be as prepared as possible and ensure my analysis accounts for everything (or as close to!). Thanks in advance!

Hi Benjamin, you can consider using your MLS access to pull recently sold comps. This would help you see its value for resale or appraisal for refinance and help determine the level of rehab needed. Then Figure out what your budget would be to get it to that level. Then pull rental comps to see what the Home would rent for. If the rent is high enough to make a rehab and cash out refi makes sense, then you can go that route. If it's not, consider selling.

If you are considering selling, think about the level of rehab that it needs to get to retail value and determine if it’s worth it to put money into a rehab to get it up to that level or just selling as is

I’m buying a house for cash from a tired landlord that’s at least 20% under comps in the area. It has a tenant in place (13 years) and needs a new roof. I’m looking to use the delayed financing exemption in order to pull as much money out immediately and recycle my capital.

My goal is to keep this tenant in place for as long as possible, so I’m looking for some ideas to bring the value of the property up prior to appraisal while keeping the tenant in place.

In addition to the roof, does anyone have any suggestions on light rehab ideas that could bring the value of without disturbing the tenant too much? 

I believe there is a cap now on the permits, if you search this forum about it there is info that has been added in the last month or two 

Yes @Lisa Edwards, it took almost four months from application to our first booking, missed most of the peak season. Love the investment but won’t be looking in 29 again lol. Thanks for the article!

We put an offer in at $1.2M and waived an appraisal, but the appraisal came in WAY lower than the agent, lender and myself anticipated (200k less). We are using a 10% down vacation home loan, and can only afford about $1.06M now.

Does anyone have any advice on how we can still make this deal work? Has this ever happened to you and how did you make it work?

Is it possible to seller finance the remaining 200k to make up the difference? Or is that not an option when you are financing the majority of the home with a bank loan? 

The local Property tax sale is coming up in a few weeks in San Diego County, CA, and the list of properties has been released. Is there anything stoping me from approaching the sellers prior to the start of the auction to try and purchase their properties? I was thinking of offering something higher than their tax lien (maybe double??), and a "subject-to" with their mortgage if they have one? I would also do a title report before making this offer to minimize any other pitfalls. This may be a county specific question, but any insight is appreciated! 

We have a new property in 29 palms and just found out it will be another 60 days before our STR permit will be reviewed. We want to list now while pending. Has anyone here done that? What are the risks? Message me if you don't want to post, need help! Thanks!!

Thanks @Seth Young, definitely looking at the midwest for some more reasonable purchase prices!

Thanks @Joseph Schweizer I have considered rent to retirement for this exchange, appreciate you sharing your story!

@Lucia Rushton- excellent point, thanks for the reminder of the power of establishing a team in an out of state market. Once I have a better idea of where I can best capitalize with this exchange I'll start making the connections I need for success.

Thanks @Seth Young for your reply. I have lots of equity in a low cash flowing SFR that I am trying to 1031 in order to scale into more doors. I am considering doing this through multiple turn key SFHs but just wanted to see what else is out there. Since I live in a high cost market, turnkey out of state seems more realistic for a busy lifestyle.

what has been your experience with SFH turnkey? Which company and markets are you in?

@Seth Youngundefined