All Forum Posts by: Ryan David Dodd
Ryan David Dodd has started 4 posts and replied 22 times.
Post: University Student looking to broaden knowledge– Advice Welcome
- Posts 22
- Votes 18
There are a lot of VA friendly lenders around. Use the forums and lender link to find a good one from BP website. One's own experience can be a very expensive teacher. BPCON2025 has a breakout session about mastering rehab estimates. There are also books about this available on the BP website. https://store.biggerpockets.com/collections/fix-and-flip
I'm hard pressed to imagine ever relying on inspectors again. Think about it. A realtor refers an inspector who can only ever be as accountable as the fee you paid him. Do you think he/she is going to kill a deal for that realtor? I've been burned by poor inspection reports that minized or missed problems that ended up costing alot of money to fix. Trial and error can get costly.
Post: University Student looking to broaden knowledge– Advice Welcome
- Posts 22
- Votes 18
Quote from @Andrew Fletcher:
Quote from @Ryan David Dodd:
Keep in mind that through VA lenders, you may be eligible for 100% LTV without PMI on owner occupied properties, and house hacking is one of the possible avenues to get started. You can purchase 2, 3, or 4 unit multi family properties with owner occupied financing. With no other debt, it sounds like your income and managing a small group of tenants might be a decent place to consider starting. Here's what I know. You're 22. Starting young is huge. Good luck! Don't quit learning but don't stay stuck on analysis paralysis forever either.
Good morning David,
Thank you for the reply! I will be eligible for the VA home loan in a little more than a year from now. I was definitely planning on the route of house hacking with the VA loan when I get it. Have you used your VA loan for investing? Thanks again for the advice and the motivating words.
-Andrew
I have. My current Primary residence is a SFR funded via a VA loan, 100% LTV, 30 year at 3.25% with no PMI. I'm almost finished with the remodel, which has been extremly costly and over budget because of the inflation. If you choose the BRRRR method or any other method involving remodel/rehab, please make sure you master the skill of accurately assessing the needs of the property, the costs of labor/materials, and the holding costs. I'm 3 years into this live in remodel and still unable to use the property to its highest use. So, you can get in trouble real quick if you don't do due diligence up front. Most of the successful investors will tell you they all had at least one painful lesson along the way, and this is mine.
Post: University Student looking to broaden knowledge– Advice Welcome
- Posts 22
- Votes 18
Keep in mind that through VA lenders, you may be eligible for 100% LTV without PMI on owner occupied properties, and house hacking is one of the possible avenues to get started. You can purchase 2, 3, or 4 unit multi family properties with owner occupied financing. With no other debt, it sounds like your income and managing a small group of tenants might be a decent place to consider starting. Here's what I know. You're 22. Starting young is huge. Good luck! Don't quit learning but don't stay stuck on analysis paralysis forever either.
Post: Commercial Property Valuation
- Posts 22
- Votes 18
Quote from @William Whitley:
When you say balance sheet, I think of it from a tax reporting perspective like accounting/bookkeeping. On the balance sheet, the book value is typically what the original property was acquired for, splitting out land and improvements. Another component is capital expenditures that adjust the basis (book value) of the improvements.
The current value typically does not appear on the balance sheet, if you are referring to that from an accounting perspective. If you are trying to estimate what capital gains might be if you sold the property, that is something different.
So onto your original question: how do you come up with a market value for your property without spending money on an appraisal? Well unfortunately, there are very few resources available to do this with any degree of accuracy.
You could see if any similar properties in your market are currently offered for sale, and that might provide you an estimated value if you calculate the price per SF and apply it to your property. However, that is not very accurate, because the asking price in the listing is not a sale price. Also, there may be physical differences between that property and your property like condition or other features. Another thing to consider is how long a property has been on the market. If a property has been on the market an extended amount of time, perhaps either there is no demand for the property or it is priced for more than a potential buyer is willing to pay.
As it relates to rental rates, you can research active rentals to see what others are asking on a per SF basis for their properties. But you need to know what kind of lease structure they are offering. It is triple net where the lessee is paying all of the operating expenses? Is it a lease where all expenses are paid by the owner? Is it somewhere in between?
Estimating market value and/or market rent is not straight forward, which is why the most reliable way is to contract with a qualified commercial real estate appraiser, but I understand the apprehension of spending the money for that.
Thank you for that thoughtful reply Mr. Whitley!
Ultimately, I am not going to sell this property. It's free and clear, high demand, stable lease/business in the property, and it cash flows nearly 100%.
The reasons I'd like to have a good idea of the current value is in case I leverage the equity for another deal, calculating net worth, and for exploring highest and best use to maximize income and cap rate going forward.
I recognize that at this point, much of it is over my head but I'm gonna fix that over coming months. This one kinda fell into my lap and gave me a taste of what mailbox money feels like, and now there's no turning back.
You've given me a lot of food for thought, and I appreciate it.
Post: Commercial Property Valuation
- Posts 22
- Votes 18
Quote from @Nick Maugeri:
Loopnet.com is a Zillow equal. Local CRE agents are the best resource for BOV - build relationships with market experts.
Solid advice. I appreciate it!
Post: Commercial Property Valuation
- Posts 22
- Votes 18
I have a "commercial" rental property in Myrtle Beach, SC and am trying to come up with a valuation for a balance sheet. The last appraisal was in 2020 and cost $2,000! With it being in the middle of one of the hottest markets in the USA, I have to imagine it's changed in the last five years. I'm new to all this but I knew enough to take my father's business, which I inherited, and executed an asset sale, which is actually an amazing story (see links below), and then lease the land/building back to the buyer of the business, and I'm pleased to say we have recently obtained a second 5 year triple net lease, increasing 3% annually. So it's unencumbered and cash flowing.
My question is this. Are there any free websites that offer zillow or realtor.com level of information on commerical properies? For instance, if I look at the neighborhood I live in, I can see all sorts of information on active and non active listings. However, I can't find that type of information on my commercial property.
My lot backs up to SFR and it is unfortunately zoned SF-10, which goes back to the 80's. It's grandfathered into a zoning exceptiong for "light industrial" use like dozens of other lots on Northgate Blvd 29577. If you look on zillow, sales info is available for all of the homes surrounding Northgate Blvd but not for the most businesses ON Northgate Blvd.
So, I'm trying to figure out how to 1) find a tool to estimate valuation of the building/land without paying for appraisal, and 2) figure out what is the highest and best use and rent rate potential of the property going forward.
What say you?!
If you'd like to read about the late Master Sergeant, Lawrence E. Dodd, USAF (ret.) and his journey to Larry's Auto Clinic, Inc.
https://thecoastalinsider.com/larry-dodd-air-force-veteran-a...
https://thecoastalinsider.com/larry-dodd-air-force-veteran-a...
Post: Newish investor in South Carolina
- Posts 22
- Votes 18
Hi, Heath! Thanks! I'll message you.
Post: Newish investor in South Carolina
- Posts 22
- Votes 18
@Chris DeTreville not yet! I'm putting the finishing touches on my current primary residence so that when the time is right, I can pull the trigger, be it house hacking or another strategy. Right now I'm in an aggressive learning phase.
I know I can probably use the VA to get into 2, 3, or 4 unit multifamily properties a year, and over 3-5 years of doing that, I'd probably have a portfolio of 1-2 million. I will not be shy about pulling the trigger once I'm more comfortable with market and deal analysis. I anticipate doing something this year. Just not sure yet what it looks like but I'm off work for the next two weeks and very heavily investing in my knowledge base, plugging back in here, and preparing to get the most out of BPCON so that I'm prepared to make big moves when the time is right.
Would you like to catch up over coffee or a cocktail?
Post: Newish investor in South Carolina
- Posts 22
- Votes 18
@Mark H. Porter hi, Mark. I will definitely do that. I grew up in MB, and my commercial rental is thriving in the Socastee area directly off 17 Bypass. I now live in Columbia but am not opposed to driving back and forth and investing in Horry Co. I know it's probably one of the hottest markets in the country.
Post: Newish investor in South Carolina
- Posts 22
- Votes 18
@Zach Edelman hi, Zach. Sorry for the delayed reply! After plugging into bigger pockets, I made the grave mistake of purchasing a larger SFR and thinking I'd do most of the labor myself. 2 years later, the house looks good 🤦🏻♂️😂. Lesson learned.
My father built a reputable automotive repair garage after his 21 year career in the USAF. It is in its 40th year of operation today. I hold a sizeable equity share with NOI approaching gross revenue in a second 5 year triple net lease with rent increasing 3% annually.