Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Remona Castle

Remona Castle has started 1 posts and replied 6 times.

Post: Yikes, Am I in over my head??...Any suggestions to save this deal

Remona Castle
Pro Member
Posted
  • Realtor
  • FRISCO, TX
  • Posts 6
  • Votes 3

Hi All! 

It's been a couple of weeks since I last responded. Wanted to first thank you for sending so much positivity and suggestions on how to make this project work.  I thought I would come back and provide an update....Biggest change, went from a fix and flip exit strategy to a Rehab, Refinance, Rent exit strategy.  Huge difference for me....here are a few steps you all help me with and how that went....

1. Reached out to the HML - they had no flexibility....probably because I am currant on the loan and they are not missing a meal yet (ha!)....either way, this will be a factor to consider when looking for funding for my next project.

2. Really considered GCing his project. I just don't feel i am ready to do that right now......but I met a GC who is willing split the role with me to reduce my cost. I do some and he will do some. We have to be very clear in the contract, which we are working on now, but i like the flexibility he is showing and I will learn a lot from Him I bet!.

3.  Decided to keep the conversion. The square footage is already there and it will add so much more value for project as a rental.  

4. Switching to a rental, is allowing me to save on some of the finishes.  Also, there is some extra work on the outside that is definitely necessary for the project if I were flipping it, but as a rental, I realized that work is not necessary.....this was a huge cost savings.

My new budget is still a littler higher than planned, but within reach. I have family who are on standby to help financially in case something out of the ordinary comes up. I hope I don't have to use them, but glad to know they have my back.


Thanks again to you all for helping me settle down and get creative. I APPRECIATE YOU!


To all Veterans in the group - HAPPY VETERANS DAY- THANK YOU FOR YOUR SERVICE!

Warm Regards,

ReMona 

Post: Yikes, Am I in over my head??...Any suggestions to save this deal

Remona Castle
Pro Member
Posted
  • Realtor
  • FRISCO, TX
  • Posts 6
  • Votes 3

I am open to all three options…if I could find a partner that would be awesome. 

Post: Yikes, Am I in over my head??...Any suggestions to save this deal

Remona Castle
Pro Member
Posted
  • Realtor
  • FRISCO, TX
  • Posts 6
  • Votes 3

@Ryan Normand - got an estimate from a different contractor. He is no longer available.  This 170k estimate is from someone I went to after closing the deal.

@Allan C. - Current Market....which is falling weekly, so agreed.  the plan of holding and renting, and getting a second estimate is in the works now.

Post: Yikes, Am I in over my head??...Any suggestions to save this deal

Remona Castle
Pro Member
Posted
  • Realtor
  • FRISCO, TX
  • Posts 6
  • Votes 3

@Issac San Miguel - yes they did, however; the actual costs are just so much more than expected.....I am still looking at ways to reduce cost and a prior post suggested looking at this as a rental vs a resale.  

Post: Yikes, Am I in over my head??...Any suggestions to save this deal

Remona Castle
Pro Member
Posted
  • Realtor
  • FRISCO, TX
  • Posts 6
  • Votes 3

@Matt Devincenzo - Thanks for responding.....the after repair appraisal without adding the bed/bath was at 415k in July. Renting had not been an option, however; i will see if rental grade materials will drop the price enough to get it completed. thanks

Post: Yikes, Am I in over my head??...Any suggestions to save this deal

Remona Castle
Pro Member
Posted
  • Realtor
  • FRISCO, TX
  • Posts 6
  • Votes 3

I acquired an off market property a couple of months ago. Its a SF home, 3/2/2, 2700 sq ft on a large corner lot (3/4 acres). Loads of potential. Estimates from two different GCs showed rehab cost at more than twice what I budgeted for (170K). I am in a HML and the monthly payments are up there. I am getting nervous because I don't have enough cash to cover costs. Any advice on how to save this deal. Here are some stats: Purchase - 260k; ARV 500k; House needs a little of everything and a lot of some and to get max ARV, leverage current square footage add a bedroom and bath, making the home a 4/3/2; with two master bedrooms. Any suggestions on what to do to save this deal....