All Forum Posts by: Thomas Harr

@Remington Lyman I’ve seen you on the off market and cream pages. We should grab coffee some day. I know you’re a big multi guy. Looking to get into that space soon.

I was leaning toward all these answers as well. Thanks for your solid advice! 

Merion Village! @Zeke Liston

Hi BP,

I want to start off by saying I am primarily a buy and hold investor here in Columbus, Ohio.

With that being said, I could use some "advice" on what some of you ladies and gentlemen would do in my situation.

I bought a house end of 2019, off market. The house was a disaster. Tenant occupied, roach INFESTED, 30+ cats, and the smell was wonderful. You could say its the old "smells like money" saying, but it was horrendous.

I bought this one with my parents and we used a rehab lender (Lima One) for the purchase and the rehab. We are using their "fix 2 rent" program, which essentially is one close on the front (buy and rehab) and a refinance on the back end without another closing. Sounds great, right? 

Numbers.....

Purchase $45k

Rehab $~50k

ARV Appraisal $180k-230k (depending on finishes.. per appraiser)

Rent $1100-$1250

We have done higher end finishes throughout to attract a quality tenant/buyer.

It qualifies for the 1% rule and would cash flow fine, but would you hold this one? Or sell and cash out?

Let me also add that this is in one of the hottest parts of Columbus with rapidly raising prices. A new build 2 doors down is about to break ground and they are trying to presell for high 300s. 

Let me know your thoughts!

@Matt Vezina I think it was due to not being able to qualify monetarily lol, the lender is a buddy and somewhat inflated my prequalification. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Columbus.

Purchase price: $185,000
Cash invested: $35,000

House hack - FHA loan. 3br/2ba a side. Added an extra bedroom onto my side and have 3 roommates. My side rents for 1350, other side is $800 (inherited tenant). Put 30k into the home - roof, fence, siding, 23 windows, flooring, kitchen remodel.

What made you interested in investing in this type of deal?

BP podcast. I've listened to every single one. They have helped me tremendously and gain 6-8 doors the past year and a half.

How did you find this deal and how did you negotiate it?

MLS! My mom is a realtor and found it that night. Gave them asking price, knowing i was going to do a small down (FHA or 5% conventional)

How did you finance this deal?

Originally, it was a 5% homepossible conventional. That ended up going haywire and somehow got an FHA approved (house shouldnt have gone FHA)

How did you add value to the deal?

$30k renovation. New roof, double privacy fence, 23 windows, siding, flooring and kitchen remodel on my side. All new HVAC systems. Ripped off old box gutters and rebuilt fascia/soffit system with new gutters.

What was the outcome?

Currently living in one unit. Brought in 2 roommates, about to make another room for myself and get another roommate. Right now CF/Month is about $200 total (not great) but it will be $600/month soon and once I refinance out of FHA and PMI, it will be about $750!

Lessons learned? Challenges?

Be patient and gather a strong group of contractors. I did probably $50-60k of work for about half that due to networking.

Hey BP,

Quick discussion and I hope to learn some bargaining techniques from this.

My last 2 off market leads were adamant that their property is worth "X" when clearly they got this number from a Zestimate (it was within a thousand or so both times). 

How do you all get past this? I understand saying that a zestimate is bogus and based off a fully renovated home ARV, but any quick tips anyone has used to get past this?

Thanks in advance,

@Brandon Sturgill we bought cash. Will do. Thanks!

Hi, We own a property in Columbus Ohio free and clear and want to BRRRR it (cash-out refinance). We are all in about $85k and it is worth around $120-130k. It is currently rented for $1350 a month. We are looking to refinance and my parents (partner on the deal) do not want to go with the option presented: Local mortgage lender: will do a cash out refinance (80% LTV) but wants to do closing costs, title, etc (+- $5k), which my partners don’t want to do. Does anyone know a good bank/service who will give a basic line of credit without having to go through putting a mortgage on the house? Is this possible? Pros and cons? Thanks in advance!

@Harjeet Bhatti this helped my offer big time. Thank you so much!