All Forum Posts by: Ryan Monty

@Jon Kelly - thanks. I liked the questions you posed about how exactly I would add value. If I were a more experienced investor, I would have a better sense of how to plan for that. At the moment, I have not walked the subject property yet. I’ve gathered a lot of info from the off-market seller. It’s a 2-flat with one of the units occupied by a long-term tenant who is reported to be very handy fixing things himself and taking care of the property. Other unit is vacant

I want to "force" the BRRRR so that I can get my capital back out and repeat. I've heard other investors say they will do a deal by getting a great acquisition cost, do the rehab work, and then look at the total picture again and determine if they should maybe just flip it at that point. In other words, if the net equity doesn't hit BRRRR levels, you probably at least have a nice flip profit. I like this as a fall back plan

@Brad Hammond thank you. Does a CMA typically involve a walkthrough of the subject property to get a more accurate assessment of condition? In my example, remember it is off market, so there's no listing to refer to

@Daniel Portka thanks. I guess if you’re just doing one or two rooms (like the bathroom in your example), you can get that done while the tenant is there. You’re making their place nicer and why wouldn’t they want that?

Looks like if your acquisition cost is low enough, you don't need to necessarily do major work to hit LTV to cash out on the refi 

@Ryan Howell thank you. Is it hard to get the appraisal value you want on the refi step without actually rehabbing all the units in the property?

Hi folks - has anyone heard of agents doing CMA's to help investors with off-market deals directly for compensation? The reason is that I'm in the scenario where I have a friend with a real estate license helping me out with my first investment purchase. He knows all the ropes about how to do a transaction, but since he uses his license as part of his consulting job, he's not in the trenches like a regular agent. I'd like a second opinion on advising on rehab trims vs. value and arriving at an accurate ARV (BRRRR is the strategy I'm using). For further context, this is an off-market lead, so I'll need the agent to walk the property, and as I mentioned I would like expert opinions on what rental-grade finishes would be appropriate for the area to maximize value.

Any thoughts on this strategy?

@Ryan Howell- if you're still checking on this older thread, I've found myself in a similar situation again.  I was wondering - in that situation described of how you keep tenants in place and rehab whichever units you can, how do you handle your "bridge" financing (assuming you are not operating in all cash)?   I'm thinking about how I can maybe use seller financing to bridge me (provided I can lock a favorable rate with them) and maybe work out a deal where the tenant agrees to switch units once the first one is done

@Nate Grabner - mostly what I learned are what people answered here.  I've started making it clear with my agent to talk to the other agent and let them know I'm going to absolutely need to know the zoning status if we move forward, so it kind of seems to get it in their heads that I'm not an uninformed buyer. 

Aside from that, about the Airbnb thing, I still feel slightly nervous about it, but I did get confirmation from a few people who had Airbnb's successfully up and renting that the City did not in fact ever pay them a visit.  I feel like that can change potentially at any point, you never know what the City will come up with later on.  I will probably avoid any deals where I NEED that extra space to rent to be profitable

@Brenden Mitchum - thanks that's very helpful!  I've also thought that, once the eviction moratorium finally lifts, there's likely to be such a huge demand to get cases in the courts, it's going to take forever to get a hearing scheduled.  

Hadn't even thought (or knew about) using a vacant at close clause - that's a great idea 

Hi all - I'm trying to get started with my first BRRRR project and I'm running into the issue of existing tenants. When I hear most people talk about BRRRR, it seems like they're maybe talking about vacant properties. You can get in a do the rehab without any interference. This allow you to cash out much quicker and reduce your holding costs, especially if you're using hard money.

I'm not going to be a cash buyer (at least not for the first one), so how would you strategize working with a property that is 100% rented at the time or purchase?

Thanks everyone.  I was also shocked to check out the terms of the hard money lenders.  One I found was 5.5% up front just to get the loan, plus extra percentage for each month you need the money.  Like @Henry Lazerow says, it has to be an insane deal