All Forum Posts by: Marshall Hooper

yeah, you should be ok. I'm guessing that ARV is based off of pre-Harvey comps? If so, take about 20% off. Also, I'd extend your timeline for rehab by about 50% as well.

also, a very tiny corner of this neighborhood is in the 500 year flood plain. Double check your subject house is not one of the unlucky few that is. 

http://www.harriscountyfemt.org/

I don't need the address, but if you can tell us what area it's actually in, then someone on here can give you a run-down on if it's a good area to reinvest in or not. 

There will be some neighborhoods who's pre-Harvey value will  be cut in half, even after rehab. 

 Kingwood? Katy? Champion Forest? Baytown? Meyerland?

what area? it flooded in over 5000 square miles of greater Houston neighborhoods. 

following

I'm curious how other investors are seeing the labor shortage for contractors right now. I've heard of some being booked out 12 months and then I've spoken with some (with good quality reputations) who can start the next week. 

I'm seeing a lot of great deals come across my inbox, but I'm finding it tough to pull the trigger due to 1. ARV's are based on pre-flood sales and 2. the risk of not being able to get contractors into the home immediately.

Would love to hear some feedback from those who have purchased some rehab's post-Harvey. 

the first sentence sounds like i don't want to talk too much about it. i'm just super busy at work, but wanted to drop a note real quick. if you have questions, i'm more than happy to answer them when i get more time. 

I don't have a lot of time to get too deep into this, but if you're in Houston, then right now is a great time to use Hard Money. I'm seeing tons of great candidates that will allow you to get into a house with part (very rarely all) of the repairs paid for by the HM. 

You could even find something that you wouldn't mind living in and time it so that your house is sold when it's time for you to move in to the one you are fixing up. If you end up not selling your current home in time and don't want the risk of paying two mortgages, you make sure the investment property has a proper exit strategy of being able to rent it out after you refinance. This puts you in a place to have your first BRRRR.

Find a neighborhood that had mild flooding, but is not in a flood plain. These homes will statistically not flood again in your lifetime. They are also areas that some investors will want to stay away from which means less competition. However, if you're planning on living in it, you will give yourself plenty of time to let the stigma of being in a "flooded house" wash away from potential buyers 4-5 years from now. 

 no, he's not saying that. go back and read his comment. 

to be clear, he's speaking about the monthly payment, not the interest rate. a typical LOC will charge you 2% per month of the balance. depending on the interest rate, it comes out to about a 5 year term