All Forum Posts by: Ryan Swigart

I closed on my 3rd property this march with the strategy of a live in BRRR. When I was walking through it prior to closing I saw evidence of termite from the past: old bait traps around the house and minor damage spots in the basement rafters and in the corner of the living room.

So, I speak to my realtor about it and he orders a termite inspection. I sent him picture of the damage i had found so he could point the inspector in the right direction. The report came back with some very small parts in the floor and garage but didn't include the spots I have mentioned. We got the spots treated for $750 (seller paid for it), so i thought everything was good.

2 months into the rehab I found severe termite damage while tearing out drywall in the spot i had sent my realtor a picture of and it the downstairs bathroom on a load bearing wall which will probably end up costing me thousands.

I should've done better due diligence, however, I am not an inspector and thought I was covering myself by getting it inspected/treated prior to buying. My question is where do I go from here? Try to hold the inspector responsible? the seller for probably knowing it had damage? Or just bite my tongue and learn from the mistake?

I'd really appreciate thoughts from everyone- thanks!

@Matthew Parrott thanks- just requested time join the group!

Investment Info:

Single-family residence buy & hold investment in South Bend.

Purchase price: $110,000
Cash invested: $40,000

In Process BRRR.
This is my largest rehab to date. Estimating around $30,000 rehab.
Cash to close- $6,055.77
Earnest Deposit- $2,500
Scope of work:
Currently On
HVAC- Heating Air and duct work $14000
Gutters, Facia, Soffets- 5,000-6,000
To Do
New doors
New windows
Garage doorKitchen
flooring and refinishing hardwood
Repainting (Indoor and Outdoor)
Remodel Bathrooms
trim

What made you interested in investing in this type of deal?

Using the BRRR strategy— was looking for a rehab near Notre Dame

How did you find this deal and how did you negotiate it?

It was listed on the market yet. My real estate agent new the owners that had inherited the property and it fit my criteria so I bought it before it was listed. They were asking $129,000, I offered $110,000 and told them that was the best I could do and final offer. They accepted.

How did you finance this deal?

I am living in the property so 5% down out of my pocket. Going to pay for rehab with money I have saved up and take a HELOC out on one of my other properties.

How did you add value to the deal?

Going to do large rehab— details in the deal. Completing a lot of the work myself.

What was the outcome?

Will keep updated as I go. Just started this deal.

Lessons learned? Challenges?

Will update this later.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Currently have a good contractor for the HVAC but don’t want to jinx it til they finish.

Investment Info:

Single-family residence buy & hold investment in South Bend.

Purchase price: $110,000
Cash invested: $40,000

In Process BRRR. This property was an off market deal owned by someone my realtor knew that fit my criteria for a fixer upper in the location I wanted (near Notre Dame). Asking price was 129,000 (high). I bought it for $110,000. Putting 5% down I am going to live in it for a year.
Financing it by money I've saved up and pulling out a HELOC on one of my previous BRRR's.
This is my largest rehab to date. Estimating around $30,000 rehab.
Cash to close- $6,055.77
Earnest Deposit- $2,500
Scope of work:
Currently On
HVAC- Heating Air and duct work $14000
Gutters, Facia, Soffets- 5,000-6,000
To Do
New doors
New windows
New Garage door
New Kitchen
New flooring and refinishing hardwood
Repainting (Indoor and Outdoor)
Remodel Bathrooms
New trim

Haven’t decided my end goal for this property yet. Where it is located it could be used for Air BNB, I could house hack it, or may use it as long term rental and move into another property. FIRST, I need to complete the rehab and will be doing a lot of the work myself.

What made you interested in investing in this type of deal?

Using the BRRR strategy— was looking for a rehab near Notre Dame

How did you find this deal and how did you negotiate it?

It was listed on the market yet. My real estate agent new the owners that had inherited the property and it fit my criteria so I bought it before it was listed. They were asking $129,000, I offered $110,000 and told them that was the best I could do and final offer. They accepted.

How did you finance this deal?

I am living in the property so 5% down out of my pocket. Going to pay for rehab with money I have saved up and take a HELOC out on one of my other properties.

How did you add value to the deal?

Going to do large rehab— details in the deal. Completing a lot of the work myself.

What was the outcome?

Will keep updated as I go. Just started this deal.

Lessons learned? Challenges?

Will update this later.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Currently have a good contractor for the HVAC but don’t want to jinx it til they finish.

Relocating for work to South Bend or Valpraiso area on January 1st. ISO local agents, lenders, and networking with other BP members. I am looking to use the BRRR method!

I have used Rockford Bank and Trust. Although, they wouldn't let me refinance/pull heloc after the rehab for atleast two years of rental history. 

Quick question. I had a deal very similar to this, I rehabbed the property and got a renter in it. I currently 55,0000 in equity but the bank will not let me take out a HELOC because it is not my personal residence and I need 2 years of rental proof.

Is it because I tried to get a HELOC loan instead of a typical refinance? Has anyone else had this issue?

Thanks!

@Bryan Richardson Thanks Bryan

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $75,000
Cash invested: $15,000

Bought it for 75,000
Invested 15,000
Now assessed at 120,000

What made you interested in investing in this type of deal?

Cash Flow

How did you find this deal and how did you negotiate it?

It was going to Auction (not foreclosure) and I got a tour before hand and bought it along with everything inside the property.

How did you finance this deal?

Family member bought it outright on credit. I then fixed it up and got it refinanced and paid them back.

How did you add value to the deal?

New doors, windows, kitchen, painting, flooring, and siding on garage

What was the outcome?

Rented it out and have a monthly cash flow of roughly $450

Lessons learned? Challenges?

It takes longer than expected and more money then expected. All in all it was a great first deal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My family has a restoration company so they helped do a lot of the work. Dyna Kleen of Rockfor.
Also, a licensed electrician/plumber who did a great job