All Forum Posts by: Sam Griebenow

Hey, @Ondrej Gargula. Having seen some of the interior pics, I’d say $75k is high for the condition it’s in and $65k sounds a bit closer.

What all parts of town do you manage property? Any particular areas you’d suggest I look or areas to avoid?

@Daniel Emery

Hey, Daniel. Thanks for the offer to help. I’ll shoot you a PM. Would like to learn more about your experience thus far and what you’re looking to do.

@Anthony Dooley - Correct. I am specifically looking for deals in Lubbock as it’s “close”, will eventually be closer, it’s a market we frequent and would be able to produce some additional opportunities out of. Like you said, there’s nothing in Castle Rock that I could hope to cash flow and I don’t want to bank on appreciation, though it has served me well in our primary residence.

So, regardless of whether it’s this deal or another, it will still be a long distance deal.

Could you provide some additional insight as to why you would draw a line at $1,500 for the minimum rent on this particular deal? What would make it a deal worth pursuing in your opinion? Lower purchase price? Higher ARV? If this isn't the deal, I'd like to know what the right one will look like.

Obviously I could also offer less than what she’s asking, but didn’t want to waste her time negotiating if the deal didn’t make sense.

@Anthony Dooley - thank you for the feedback.

Unfortunately, I can’t play in my local market. I live in Castle Rock, CO and there isn’t a single deal here or within a few hours of me that I could purchase cash. At least nothing I could purchase cash that anyone would want to rent, really.

As I mentioned, the RE Agent/investor/GC did purchase the property to do herself. My guess is that, because she’s a GC, she budgeted about 50% of the estimated rehab since she would be doing it at her cost. She would be interested in selling it to me because I’m assuming she’d be making some money on the sale and, if I used her as the GC, she’d be making the GC’s margins on the project.

The property is in my wife’s hometown about 8 hours away. While I wouldn’t oversee the entire project, I would stop in at major milestones.

Hey all,

I'm a new investor looking to kick things off using the BRRRR strategy in Lubbock, TX. I'm new to analyzing deals, so I was hoping to get a sanity check on a deal that's come my way.

This is an off MLS property currently owned by another BP member/investor/RE Agent/GC. She was planning to flip this herself, but thought it might be a good fit for me. The property was originally a 3/2 with garage, but the garage has now been converted to make the property a 4/2. The current owner believes it should probably just be converted back to a 3/2, but I'm interested in seeing if we can go to a 4/3 to increase appraisal price and STR gross potential.

Purchase price: $75k

Estimated rehab: $30k

ARV: $120k

Obviously, using the BRRRR method, the hope would be for purchase and rehab expenses to come to $90k, rather than $105k.

I'm torn on this deal for a few reasons:

1.  This is a long distance deal.  It would be a huge benefit to do this deal with a partner who is an investor, has her RE license, and is also a GC.  I have seen some of her listings and properties she's done in the past and they're right in line with my expectations.

2. I have watched the webinars, read the book, listened to the podcasts, etc... and I know that walking into a deal expecting an all in price at 87% of ARV rather than 75% or so of ARV isn't considered "buying right."

3.  Those same webinars, books, podcasts, etc... talk about the first deals "not mattering" beyond getting your portfolio started and learning.

Should I jump on a deal that looks fairly turn key on the outside that will leave ~$11k of initial investment in the deal to get things started or should I be patient and wait for something that appears to have better margins?

Shifting gears a bit. I have a friend/partner who is interested in being my "tenant" at these properties and using them for short term rentals. The idea is pretty simple: He'll pay me 1% of ARV with occupancy beginning immediately after remodel, and he'll get to keep what he nets beyond the 1% using AirBnB to manage STRs. I like the idea because it reduces my overhead expenses (no vacancy, no PM), provides cash flow to my partner, and allows me to refinance having a year long lease locked up.

Has anyone ever done this?  Any pitfalls that I'm not paying attention to?

Thank you all in advance for your time and any insight, wisdom, or feedback you can provide!

@Steven Garcia

Hey, Steven! What a small world! How are you doing? Do you still ride?

I’m actually hoping to avoid student renters, but want to be close enough to campus that a short term rental strategy is viable for those visiting students and in town for the Tech events. Do you do long term rentals only?

Are you a real estate agent now or just doing some investing? Great to run into you!

@Shad Rich - The abundance of land and areas to expand has been my main concern with investing in the area. Property values go up as availability decreases, and Lubbock has all the room in the world to grow outwards.

Good luck on your current rehabs!

 Hey, Jarrod. Thanks for the PM. We just had our second daughter on Monday, so I’ll be a bit slow to respond, but I’ll definitely get back with you!

@Joan Brown - thanks! I sent you a PM, but I’m not sure if you got it. I saw that you do a little bit of everything in Lubbock including being an agent. Do you do AirBnB with any of your properties?

Do you work with many investors? I’d love to pick your brain on where you’ve found success in the Lubbock market. 

Ideally I'd purchase, rehab, rent long term for ~1%, refinance, and then move to an STR model after the first tenant's lease is up.

I’m looking for the right team of people that know the Lubbock market well to work with.