All Forum Posts by: Stephen Bruce

 What would an appraisal benefit if I value-add? 

Two great questions. I am using the extended due diligence period to get the most accurate renovation estimate as possible. Current rent rates for all 4 tenants are well below market rate because of the condition of the property. I'm hoping my value add will put the ARV between $435,000 and $500,000 (commercial appraisal). From a residential appraisal, I have not been able to create an ARV because of the lack of comps. Do you have any recommendations?

Thanks for sharing! You brought up the hardest part of the process. Cap rate and NOI seem to be the easiest way to calculate my ARV! The hard part is knowing if a lender will accept it. Comps are hard to come by for a quadplex (They aren't really a dime a dozen like SFH). How do you plan on going about your ARV from a comp-based perspective?

Thanks, I will definitely read the book! And best of luck on your Quadplex :)

I highly recommend the book "Invest in Debt" by Jimmy Napier. He will walk you through the note creation process. Best of luck!

For context, I am in the due diligence process of a quadplex in a C-class area. 

2 bed/ 1 bath

800 sq ft

PP: $275k

Cap Rate: 7.5%

This is my first attempt at BRRRRing a multifamily. Does anyone in the forum have past success using the BRRRR on multifamily? Where did you go wrong? What did you do right? What would you do differently? Any books you used to help you along your way?

Look forward to discussing this topic with everyone. 

I'm about to have my first appraisal done on my BRRRR. In your past experience, does it matter if the house is tenant occupied or empty?

I have a narrow windows between the cleaners coming and the tenant moving in so I’m trying to strategize for the best result. Thanks in advance! 

If you don't mind me ask, how did you determine the ARV on your multi family? I'm in the market for multi family and am trying to fine tune my ARV process. Any suggestions would help!

Good evening, BPers! 

I am closing on my first property tomorrow! I am very excited but also nervous. The current economy can be intimidating for a first-timer. Do the experienced BRRRR investors have any advice for me as I start this process? Anything would help: from past experiences, current projects, navigating this market, tips and tricks on Reno, etc.

Thanks in advance! Looking forward to reading through everything you guys say. 

For my LTR, I am in-between providing a washer and dryer for my tenants and charging an extra $ amount/ month for the use of the equipment and not including them at all (I would sell the washer and dryer on FB marketplace). 

Any recommendations? Have you as a landlord leased a washer and dryer to a tenant? How much did you charge per month? 

Thanks in advance for help!