All Forum Posts by: Shane Correll

Hey Keith, I have a property in AA that is a split foyer as well. I was wondering if you ever figured anything out on this? I would be interested to know if it's possible.  

Thanks everyone for your feed back. 
After reading through I realize my numbers maybe aggressive. I will take a look at everything and rerun the numbers. 

@Joe Prillaman , Thank you for the numbers. I appreciate that feed back, I was actually having trouble figuring % of cap ex . I will up my rebab budget. I own a restoration and flooring company so my anticipated cost might be lower given my direct cost of materials and labor. 

@Tim Herman , Thanks for the feed back. I was hoping to work closely with the selling in hopes to start the eviction process early prior to closing the deal but perhaps I am being to optimistic. I am definitely reworking the numbers, I plan on reviewing the property in detail before closing so that I can get a good idea on life expectancy for the cap expenditures.  I typically get a water heat replace for around $700 materials and labor. To be honest I dont know much about the carrying costs or hard money so maybe I need to look into that more. Thank you

@Shadonna N. , I appreciate the input. I will trying to up the PM to 10% but as this is my first rental I will plan initial on managing myself. I hope to learn a lot of what it takes to be a good PM, although I certainly dont plan on do that forever. I just wanted to learn as much as possible.  How much does an eviction normally cost? or does it vary 

@Ozzy Sirimsi , Hey Ozzy how long do you typically expect an eviction to take? and Cost? I have a lot of contacts and experience in the construction industry so I hope that will add me in fixing up the property. I not 100% of the ARV but comps in the area have recently sold for around there. I figured the cost for the HM for be steep but 10K is a lot, I guess that is why I wanted to get a better deal on the property. Oh and I know that a water heater doesnt cost 1200 the only time I have ever paid that much was when I paid Roto Roter for an emergency services over the weekend and I think that was still only $1100. I am sure its location base pricing though. Thanks for all your help

@Jason L. , Thanks for your honest feed back. I realize after reading everyone post I am being overly optimistic. I am grateful for BP and having the advantage to run this by everyone. The property is list well below market price and is an off market deal. I think I forget how these appraisers are individuals and subject to their own opinion. What is the best way to get a solid number for ARV? I looked at comps in the same neighborhood. I also looked at the values on Redfin and Zillow (i know thats not the best way) . I am prepared to leave whatever rehab cost are in the property. The more I leverage the less cash flow I have in the deal so I dont mind leaving 10k - 15 k in the house.

Does anyone know of a better way to get into this property outside of BRRR? Lease option or seller financing are interested to me, would either one of those work if the seller was open to it? Lastly if I can get the deal done myself is this something to wholesale? I am not 100 % confident at this point in my real estate knowledge and lack of experience but I know I need to get my feet wet soon.

Thanks again for all the feed back, I am grateful for everyone who weighted in one this. Again I will go back and run my numbers this time a little less optimistic .

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hey BP ,

I wanted some input on this deal. The properties in Baltimore County and the current owner owns it free and clear. I got a tip the other day that the owner is looking to sell the property because she has a bad tenate and just wants out. She owns the property free and clear and is looking for 100 k for the house. I ran the numbers and the property ARV is roughly 150 k and it should rent for 1400-1500. This would be my first deal and I was hoping to get some feed back. My goal is this: I would like to negotiate with the seller for a deeper discount giving the troubling tenate and some rehab that might be needed. I would like to get her to 85-90k. I don’t have the ability to pay in cash so I plan on using hard money to close the deal, I will put up the money for the rehab (estimate 10-15k). I would evict the bad tenate, rehab (less then 1 month), get it rented and then use delayed financing to get a traditional mortgage on the property.. At 70% -75%I could pull out about 105k enough to cover the hard money, any loan fee and some rehab cost potentially. I realize HML typical only do short term loans of 6-12 moths but I feel this is easily accomplished within a 6 month period. Based on my number the deal looks promising. I am however scared to screw it up this being my potential first deal ever. I have include 8% for a PM but I am sure this is a task I could handle myself (and might want the experience). 

Any feee back would be greatly appreciated. Also any other recommendations such has seller financing or maybe even lease option. 

Thanks BP looking forward to any feedback. 

Disclaimer I am not 100% on the number with this deal, and I also would plan on the tenant paying utilities but I am not sure if that is typically in my area. If the tenant doesn’t pay utilities that could impact my cash flow significantly.

Hey Ken, 

I would start with a simple search in the BP search Bar for Seller Financing. There you will find a few articles on the topic. 

I think there are few different ways to do this (e.g: lease option, subject to, land contract) 

Check out this article to get started then search the individual tactics in the BP search bar to get more info. 

https://www.biggerpockets.com/renewsblog/2011/07/20/seller-financing-3-kinds/

Thomas S,

How did you go about calculating the loss of income that the equity sitting in the property is costing? Is there a formula you use to determine that number?

Hey Scott,

I am new to investing and looking to buy my first flip this year with the intent to switch to buy and hold long term. I think you are in a good spot. If your intending on using the BRRRR strategy I would say you are well on your way. If you plan on keeping that first rental property and do not mind holding for the long run I would say use the equity. As I have heard many time on the BP PODCAST what good is equity if you can't use it. If it where me I would get a home equity line of credit (or some other form). If possible try to leverage that money for a down payment and rehab fees for your next property. Just imagine if you could get another $500 a month flowing in. Once you refinance the deal (if you did it right) you will be able to pull your money back out. You would be well on your way to financial freedom with $1000 monthly cash flow and 2 rentals. My intent is is do build up enough equity that I can use the line of credit to pay cash for my deals and not spend anytime seasoning (the 6-12 month you have to wait to refi).

Let's connect and stay in touch. 

Hello BP,

I am excited to be a part of this network of incredible people. 

I am looking for advice. I think I would feel more comfortable partnering on a deal with someone. Although I have little cash on hand (most tied up in my business), I do have a lot of experience in rehab/remodeling. I would be interested to get people's opinion on this idea.

I currently own a flooring company and I was wondering if my experience as a contractor could be used on a partnership. As I said before I am eager to get started but nervous to go it alone. Would it be possible to network with experienced investors and offer my skills/trade as a way to get my foot in the door. I do have access to some funds but would it be feasible to offer "sweat equity" and possibly offer my flooring services at cost / free (flooring as my investment)?

I know its all about being creative so I am trying to use what I have to get started sooner

Any advice would be greatly appreciated

Thanks in advance

Hey James,

I wanted to put my two cents in on this. First off I am new to investing so this is all just my opinion. I looked into this property on reservoir hill a few weeks back. I also took the time to run a crime report on the area. The area seems to get a good amount of activity as far as crime incidents go. I also looked at the comparable. The average price for a three unit in that area is roughly selling for a $156,000, so I would say that you would be  paying close to retail for these units.  I'm a firm believer that you make your money when you buy, although cash flow certainly helps. This property does have a pro forma attached so if your really interested I would post a screen shot (leaving out the address) of the numbers to see what the other BP members think of the deal.

Hello BP,

I am excited to be a part of this network of incredible people who all love real estate. I am just getting started and currently have no investment properties. I am constantly educating at this point to try to add to my tool belt! I am eager to get the ball rolling but I am slightly nervous to get my feet wet. 

I am looking for advice. I think I would feel more comfortable partnering on a deal with someone. Although I have little cash on hand (most tied up in my business), I do have a lot of experience in rehab/remodeling. I would be interested to get people's opinion on this idea.

I currently own a profitable flooring company and I was wondering if my experience as a contractor could be leverage on a partnership. As I said before I am eager to get started but nervous to go it alone. Would it be possible to network with experienced investors and offer my skills/trade as a way to get my foot in the door. I do have access to some fund but would it be feasible to offer "sweat equity" and possibly offer my flooring services at cost / free (flooring as my investment)?

I know its all about being creative so I am trying to use what I have to get started sooner

Any advice would be greatly appreciated 

Thanks in advanced