All Forum Posts by: Scott K.

Thanks for this post, @Angie Williams! I'll call Jimmy today. I'm looking at a potential property in Orange County and could use a good contractor that works with investors.

I'm evaluating a potential BRRRR property. It's a single-family, one-bedroom bungalow-style home.

The attic is fairly spacious and could certainly be converted to bedroom space. I'm wondering - are there specific requirements for converting it so that it's counted as a bedroom in an appraisal?

Also, the basement is unfinished, however it does have a washer/dryer and drop sink. Would there be any value in tiling and/or putting up drywall? It's worth noting that the water heater and furnace aren't walled off.

Should I consider either for a higher refi appraisal? Is there anything else I should consider?

@Sue Hough thank you for taking the time to write such a thoughtful reply. I really appreciate the detail and pointers.

It makes perfect sense that the term gut renovation is far too vague!

I came across a 2-family property in East new York in need of a full gut renovation. It's in pretty rough shape.

The agent mentioned construction costs for a full reno would be in the $100k-$130k range. Does this seem in the right ballpark?

I'm looking to get smarter on the topic (I'm in middle of J Scott's rehab costs book) and intend to get 3 formal estimates.

But I was curious to know - for folks that have been through full gut renovations, what did these cost in total?

@Erica Larence-Penna, @David Barnett - thank you!

Hi all! I'm trying to understand how a cash out refinance typically works.

Let's' say I've refurbished a property, its ARV is $100,000, and a bank will offer a 70% loan-to-value cash out refinance.

Would this mean I would get $70,000 in cash less any transaction fees/closing costs? Or do lenders typically additionally require some sort of down payment (e.g. 20%) that most conventional loans require. So in effect I'd get $56,000 less transaction fees in cash and have $14,000 in equity?

@Matt Stricklen - I appreciate the insight. I would love to see a copy of the spreadsheet you're referring to.

Hi @Roberto Schimmenti, just checking to see if you've been able make any progress with BRRRRing. I'm also starting out and am keen to BRRRR. I live on the Bushwick/Ridgewood border, right near the Jackie Robinson, so I'm similarly open to parts of Queens and the Bronx as target areas.

I'm curious to better understand some of the nuances around forced appreciation while rehabbing. Some questions include:

- When is it appropriate to add an additional bedroom?

- When is it appropriate to add an additional bathroom?

- Is there some sort of square footage heuristic that should be used for the above?

- Aside from adding a bedroom or bathroom, are there other ways to substantially appreciate a property?

It would be great to be able to view some examples of this!

@Michelle Backer what makes you think that things are a mess? I have a young child, but he's young enough (18m) that the pandemic has yet to have an effect. We're fully quarantining, but I expect there to be a vaccine in about a year, at which point people will be far less fearful of socializing.