All Forum Posts by: Ryan Short

@Timothy Munger if you self manage the property than the appraiser will input a company average. I’ve had multiple different appraisers use different repair and Managment percentages for the same town. They can also add in extra expenses that you do not have added in like snow removal or landscaping. I think they try to get to a certain expense ratio for the valuation.

@Cipriano G. When I take over a new property I always raise rents to the market rates for the condition of each unit. I start off with a introductory letter stating I am the new owner and I look forward to having you as a tenant. I also give each tenant an allowance of $250 to upgrade anything they want in there apartment. This way it is a win win scenario for both parties. I get to check out the unit and add value at the same time. My tenants get to upgrade something they’ve been wanting like a new toilet, microwave, paint a couple rooms, ceiling fans, etc. Surprisingly a lot of times the tenants agree and say they would rather keep the apartment the way it is. Most tenants understand us owners purchase the property with raising rents in mind.

@Russ Wahl I have went through a similar situation myself when doing a cash out Refi on 2 of my properties. The only difference is they allowed me to pay off the credit cards with the Refi funds. This helped lower my DTI ratio which they needed to get the loan through underwriting. I planned on paying the credit cards off anyways because they were from the renovations on the BRRRRs.

@Kenneth Hynes LVP looks more modern and will help the apartment stand out. LVP is easier to coordinate with color themes most of the time as well.

@John Fider I have had good luck with using a metal head multi tool and cutting them all off or using a large yellow crow bar and pulling up multiple at a time. All staples are different though so depends on your type of staples.

Yah PM me anytime, every market is different. Some investors can get massive amounts of cash flow off single family or multi family properties. It all depends on the value of the property when purchased. Some single family properties can cash flow more than 4 unit properties depending on how the property was listed. Buying 4 units or above is your best bet though, more tenants usually equals more income and more profits. Just make sure you know your local market and are running the numbers daily on new properties hitting the market. 

@Michal Kasza I am currently closing on a live in flip single family house. I am currently 6 months into this closing but it is because the seller has a probate issue and the virus has closed most of the courts and slowed everything down. Without the probate issue I would have closed in 30 days. The real estate world is still moving just fine.

@Michal Kasza that's awesome, you cannot go wrong learning and investing in yourself. The only thing different now is the lending environment. Mortgage companies want to take on less risk with the uncertain market. LTVs are going to be lower and not many owner occupied loans will be given out. Most banks are only doing 80% LTV or lower until the market stabilizes again. Sellers are not worried about where the money comes from, money is money to them. Some sellers would rather a conventional loan instead of an FHA but only because of the tough guidelines the government wants and it takes a lot longer in the due diligence phase.

I understand if she is having a hard time because of the virus and not being able to work. I had a similar situation in my property and I helped the older gentlemen find a nicer better suited property for him and gave him great referrals. I helped him contact the town housing official. He was so grateful and a lot better off at this newer larger community with other people like himself. His apartment was renting for $625 and is now renting at $1100. I purchased the property knowing I would renovate his apartment. Just try to make it a win win situation for this elderly woman.

@Michal Kasza you are still in a really good situation with one home under your belt. Are you sure there isn't any equity in your property? Are both units going to be at the market rent for a renovated unit? Your best route is to rent out your unit like you said and cash flow nicely at $600 a month. This will help you save up for your next down payment of $10k-$15k with the FHA loan or a 5% owner occupied loan.

On your next property try to buy a fixer upper that you know you can raise the rents 20%-30% and buy it below the market value which is not an easy task. Make sure you have an awesome real estate agent that is an investor and isn’t telling you to buy everything on the market. Run your numbers and make sure the property is cash flowing when purchasing and after the refinance. @BrandonTurner book “The book on rental property investing” is a must read for any real estate investor along with David Greens book “Buy Rehab Rent Refinance Repeat” is amazing as well.

@Carter Henderson you do not want to deduct it from the purchase price because that would just lower your mortgage payment less then $50 a month which you do not want. Ask for a closing cost credit or a repair credit.