All Forum Posts by: Paul DeSilva

Nice job! Thanks for sharing!

@John Fortes Thanks, I think that taking advantage of the high appraisal and getting a HELOC can put me in a good position for when the correction happens.

Hi BP, Recently I have increased my net worth (through my equity position on a property). In your opinion is having a higher net worth or using that equity to make another investment and temporarily decreasing your net worth and being highly leveraged the better move in the current market? TIA, Paul

@Jason DiClemente that's what I am trying to do but she is pretty firm at this price.

@Jason D.Thanks, I agree, it just made me really second guess myself. This all happened today so I'm still digesting it.

Hi BP family,

SO.... I'm getting ready to close on a seven family property in a few weeks, the inspection went well but the appraisal came in lower than I expected. The bank is still offering financing but I'm wondering if I am overpaying. Some feedback is much appreciated.  The purchase price is $360,000 and the appraisal came in at $350,000.  I know about the 70% rule and realize that there will be minor repairs. All that said the property still cash flows and it fits my criteria. Here is the property analysis.

Thanks,

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Ryan Bianchi That's great!

@Lafo MananeThanks, it's amazing what you can do with some creativity and not too much money out of pocket. So responding to your post, the subject property was originally listed at 119k I believe if my memory serves me. It was on the market for a while, I actually went and looked at it with my agent and never made anything of it besides saying to my agent "what a beautiful old house with such character and craftsmanship lets look at the next property I don't like the numbers". It stayed on the market for a while and then went to short sale and then went off market, I thought someone had bought it. Fast forward over a year... I'm out to dinner with my wife on Valentines Day and my agent calls me and tells me it came back on the market as an REO at 90K. I went and looked at the property again the following day and made an offer at 80K with an inspection contingency. It was accepted. After the walk through with an inspector we discovered that both boilers and multiple radiators were blown out from freeze damage, also some structural damage. Got my contractors in there to write estimates and presented them to the bank and a 60K cash offer, it was accepted and we closed shortly after. Bottom line is I knew what I needed to get the house for and I think that the bank wanted it off their books. That being said the appraiser did an accurate job in my opinion, my comps were within 10-15K of the appraised value. I will try to post some pictures. Now I get to see what this velocity of money everyone is talking about is all about.

The deals are out there and its true what they say that if you find a good deal the money will follow. 

@Frisco Hanley As long as the numbers work, I think it is a great strategy. 

@Robert Schumacher Thanks! No major set backs it was a little stressful at times but the learning experience was totally worth it. Two things that were rough at times were getting the contractors to work a full week and getting tenants took a little longer than expected, probably because it was a bad time of year and we screen our potential tenants very well. 

@Daniel Krantz Nice good luck with your BRRRR. Both properties are in the Hudson Valley and I found the 7 unit through my plumber who told me that the owners were thinking about selling, I contacted them and we made a deal before it ever went on market. I tell all my contractors to let me know if they hear of any Real Estate that is or may be for sale!

@Matt Rogers Awesome keep up the good work!

@Jill Haselman A local portfolio lender.