All Forum Posts by: Thomas Fortune

I'd personally look for 8-10% cap there as a general starting point. A local broker could provide more specifics - Ocean view in an of itself has a lot of variety of building quality, flood zones, demographics etc. so depending on the specifics of the building it could easily be more or less.

Norfolk is a big city, neighborhood quality varies widely and cap rate varies along with it. Where is the building?

@Sean Youngberg - if you share some details around the property itself, there may be some help/insight on offer on how to get the house sold. I'm not saying don't pursue the cash-out, but the best solution to your problem is selling. 

How realistic is your asking price? Is the house staged? Professional photos? Correct agent commission for the selling agent? 

Brandon,

Assuming you did the loan using house as collateral, and used an attorney / title company to do all proper paperwork at the outset - i'd call that attorney or title company as first step.

Regarding your second question - did you provide all rehab funds up front? as opposed to draws based on completion?

I would ask a realtor who works in the area what they think the appraisal impact would be (would want to make sure they have actually seen an appraisal of homes with / without central HVAC). My guess is that very few homes will have the ductless system, but they could probably tell you the price differential between window unit AC and central AC. Whatever that differential is, I'd imagine your ductless solution would value somewhere in the middle of the two.

I did not - particular property I was evaluating had more structural issues than I cared to deal with. Still looking at doing this at some point though, just haven't done it yet.

@Eric M. - what size property, and what kind of numbers would make a good deal for you?

My 2 cents:

With that much equity in the property, I'd opt to keep your 15 year with that low of a rate, and then setup a LOC on 75% of your equity. You may have done this, but look at a side by side comparison of the next 10 years if you keep the current 15 yr vs refi on 30 year. My guess is that your total gain (primarily in debt paydown) will be larger when keeping your 15-year.

The only reason I can see to refi to a 30 would be if you are bleeding cash and NEED the extra cashflow. If you can afford to break even on cash flow in order to gain more over the next 10 years in debt paydown, that would be my personal pick.

@Jason Runkle - Virginia Beach is a highly sought after city. Lots of competition, lots of affluent (or at least non-distressed) home owners. For direct mail to get results, the recipients need to be in some form of distress. Non-distressed sellers do not sell for 50-60% ARV...only distressed ones do.

It's possible that you are fishing in a pond that has very little fish interested in your bait. On top of that, there's a ton of experienced fishermen already there alongside you...competing for the same small number of fish that may bite.

There was a podcast a while ago (sorry, can't remember which one) where the guest spoke about dumping money into direct mail in her city in So Cal with no results for months after months. In her experience, there wasn't enough distress in that city for the direct mail to work like it did back in 2010. She switched her target cities, kept mailing, and deal flow picked back up.

Don't give up on mail, but you might consider targeting neighboring cities instead of exclusively VB.

Lots of time, and lots of money.  Have 3 general contractors walk the property with you and give bids - that's the only realistic way to tackle this.

I could give price range for standard items - roofing cost/square, paint cost/sqft, flooring cost/sqft - but none of that will mater with a project this large. Timeline will also be a function of who your contractor is, how much work they are subbing out, how well you do with obtaining/passing permits, etc, how old the home is, etc.