All Forum Posts by: Ryan Wydler

Thanks everyone for the advice and insight, I like the private lending route too. I will reach out to some local investors as a sort of bridge loan. 

I'd rather not sell if I can at all avoid it, It's really a prime location and I'm trying to keep my focus on the long run: Buy and hold forever. I will update everyone as it plays out. 

I really appreciate everyones input! BP rocks!

Best,

Ryan

I bought a great property in a really trendy area (The Fan) in Richmond, Va. The idea initially was a kind of House Hack/ BRRRR hybrid. I'd move into the downstairs bedroom and rent out the two bedrooms upstairs. The rehab was kind of rocky, but we got through almost everything (even with COVID19) and I moved in.

Now, I'm having trouble getting my refinance. I opened several 0% interest credit cards to do the renovation and piled on about 60k in cc debt and (because of my utilization rate) my credit scored plummeted to just above 600. I can afford to make all the payments with my W2 income so I'm not in any kind of serious financial distress, but banks really aren't eager to give me options with my score where it is. 

What would you guys suggest? Has anyone found themselves in a similar situation? I know I have a ton of equity in the home now (bought it for 200k, now conservatively ARV is about 350k) but how do I go about getting the Refi? Does anyone know a good portfolio lender that can overlook a credit score?

Thanks!

@Justin J Morello congratulations on taking the biggest step, DECIDING! Richmond is a great market. Lots of variation in price point depending on your strategy and great potential for growth.

I'm working on my first BRRRR, in the middle of the renovation now. A couple pieces of advice from one newbie to another:

(1) network! Like others are suggesting here, it’s really really really valuable to meet other like minded people.

(2) build a system to find leads (search FSBO on Craigslist, drive for dollars twice a week, etc)

(3) don’t be afraid to walk away from a deal if the numbers don’t work or if the margins are thin (there is ALWAYS another deal to be had, think abundance!)

(4) DOUBLE your rehab budget and your estimated schedule, especially if you have a full time job and you’re acting as your own GC. Seriously, it’s going to take twice as long and cost twice as much.

(5) If the house is 50+ years old and you’re going to hold for long term and not flip, budget to replace the old Cast iron plumbing ( I found roots growing into my sewer line after closing, A very costly unexpected expense).

(6) Finally, stay Positive and remember the whole point of the first deal is just to get through it! It’s not about making money on the first deal it’s about building a foundation of practical knowledge that you can apply for the rest of your investing career!

Good luck!

@Josh Simpson, Great post and dilemma to have!

I would think it really first and foremost comes down to your strategy, Is your goal the 'Buffet approach'? Buy and never sell? or are you open to selling when the opportunity presents itself?

It seems like your open to selling in an optimal circumstance, which I don't think is short sighted at all, If the opportunity is there and it will be tax free and the rent you would be getting is sub 1% rule AND you have an idea of how to redeploy that capital to get a better return I think it's definitely something to consider. I think a good rule of thumb in a case like this is to look at your projected Return on Equity (ROE), if the cash flow (from that $1,500/month in rent) divided by your equity in the property is less than 10% I would say cash out and redeploy.

I'm curious to know what you ended up doing? Are you still doing deals in Richmond?

Cheers,

Ryan

 @Ryan Grant That's interesting, I'm looking to get a garage door installed at a property (I love BP), I'm going to send you a PM. 

I really like your goal too, 3-5 BRRRRs a year could result in some serious wealth in just a few years. I definetly feel you on the "might have paid too much" feeling. But all the lessons we are soaking out of the first BRRRR are 1,000% ROI if we do the second deal.

Interested to see how your deal plays out, keep posting!

Good luck

@Brian Beck that’s awesome that your learning all the tools of the trade working with a flipper in the DC market! What kind of strategy are you looking at? Buy hold Single family? Multi family? Hosehack or just a rental?

@Andrew R. That’s great! Once you decide it’s your goal and put a time line on it, things start to come together. What markets are you looking at? 

@Amy H. thank you! How long have you been investing in the area? I have another property in west Henrico close to short pump. I like that area too.

The rehab is still underway, only been about 5 weeks. I’m hoping to be “done” by late March (done meaning, Refinance ready), but I will admit since I’m also house hacking I’m spending a little more and getting higher end things like granite counters and hardy board siding instead of vinyl.

The SOW Right after purchase looked roughly like:

(1) total rehab downstairs bath

(2) new Sidding, new windows, new exterior door, new roof

(3) new Prime/paint throughout 

(4) new counters and appliances and light fixture in kitchen (keep cabinets and floors = huge win)

(5) cosmetic update upstairs bath (new vanity and shower fixture)

(6) new carpet, paint, ceiling fan 3x bedroom

(7) new heat pump and furnace

(8) demo and replace deck

*(9) add 2nd story deck with back staircase and upstairs door (I wanted to add this to make it really easy to Airbnb the master bedroom, but it might not be in the budget)

I am doing a lot of the work myself on weekends with my dad which has been awesome learning as we go. 

Thanks @Brian Beck! How do you like the fredericksburg market? I lived there 2105-17, seems like a great place to hold long term.

I recently purchased an old rowhome in Uptown Richmond, Va (The Fan District). It's an end unit and the previous owner always parked in this ally next to the home (10+ years) she claims she even got the city to remove the curb so she could pull into it like a driveway. I got a survey during my due dilligence and the ally was labeled 'private ally', but it was not included in the deed. My title company did a little digging and it is in fact a private ally (not public) but they don't know who owns it and they said I can do a title search but it would be an expensive one because of the age of the home (100+ years). 

What options do I have? My inclination is to try and get the ally added to my deed, is that possible? What steps would I take in starting that process? 

Thanks BP!