All Forum Posts by: Ryan Rudy

Unfortunately, there were serious structural problems with the property and we had to back out of the deal.  We are bummed but super thankful that we were able to identify the problems before we fully purchased the property.

On to the next one!

@Louis Jeffries thank you! Our purchase price is $65k with 20% down and a 4% estimated closing costs (given to us by our lender) which will be coming out of our saved cash. We will be using an unsecured $20k LOC to rehab the property. We expect to be between $15-20k bringing our total to $87.6K in the property. Comps in the area should get us an ARV of at least $110k. Our lender will refinance up to 80% of the ARV, which should be at the lowest $88k. This should be able to pay us back our initial capital and pay off the LOC.

Of note, we are using a construction loan through our lender so we will know the ARV before closing. We need to provide the appraiser an invoice of renovations items that we will be performing to the property to calculate the ARV.

@Lee Ripma thank you!  That is great advice!  We will be doing most of the work ourselves except for a total kitchen rehab. I have heard that the lowest bid is not always the best option.  We are looking to do good quality and durable.  We believe the property needs mostly cosmetic updates and paint.  We are really excited to start getting our hands dirty!

@Jason Crittenden thank you!  We are investing in our local markets.

Hello all!

After many months of planning and strategizing, we are under contract on our first rental property! We are closing on the property November 16th and could not be more excited! We have a great plan moving forward to BRRRR the property and hopefully obtain our first property with zero money out of pocket. Just wanted to say thank you to the Bigger Pockets community for fielding questions that we had and being a supportive group! We are busy planning the rehab portion of the property and are looking forward to the second half of this adventure!

What are some of your favorite BRRRR experiences that you might think will assist us in our BRRRR project?

Thank you!

@Kyle McCorkel

I forgot to mention that we are looking to use the BRRRR method. We have a good connection with a fantastic contractor that is in it for the long haul, so we looking to get properties that may need some to a lot of work done.

@Kyle McCorkel

Yeah we are finding out that it may be pretty difficult to get a unsecured LOC. We have discussed putting down some cash for a cash secured LOC and hopefully getting a little more. We have been talking with 3-4 lenders now but our big meeting is in September with a close friend.

Thanks for the heads up with the MLS inventory. We are really cautious when looking at the MLS. Prices are absolutely ridiculous right now.

If you have some time we would love to pick your brain about your experiences since you are a local investor.  My wife and I both grew up in Central PA and know the areas pretty well.  We are just trying to get as much information as possible.  Any advise would be fantastic. Thank you in advance!

@Marcus Auerbach

Thanks for the insight!  We are just trying to get all the options we can before we jump into our first deal.  From everything that we have learned from this post, it's necessarily the cash purchase as much as accommodating the seller to close the deal.  We will make sure to contact the seller agent  before any offer is made to make sure our offer is customized to what to the seller is looking for.

@Manny Del Val thanks! We want to be able to provide our strongest offer and I think cash can definitely assist with that. We are trying to get a LOC to assist with the purchase and rehabilitation using the BRRRR method. We are putting our business plan together for a mid September meeting. This will definitely help, thank you!

@Mark H. Porter that's wild!  We actually moved in May right in the middle of the COVID hysteria down here in PA.  We had a month close which was pretty quick.  We had an inspection and traditional financing.  So hopefully when we are able to start legitimately start putting offers in we can get the close process done in an efficient amount of time.