All Forum Posts by: Tim Vecchioni

 This property is in Annapolis, off of Forest Dr. Right near the beginning where Chinquapin Round Rd is. 

 I couldn't agree more and thanks for the tip about the inspection. I will get right on that! That is why I am a little sketched out about the house since it has been on the market so long.  

Hey!

So this neighborhood I would say is a C/C+. The rent is all over the place with comps but I would assume fixed up, this should pull $1700 due to its location. You are literally minutes away from an A neighborhood and great shopping as well as all major community roads. The asking price is $140K and originally started at $180K back in Septemeber. However, the house was build in 1974, which leaves me to believe there is going to be a lot to replace/upgrade within the house. I am looking to go walk this ASAP to see for myself but wanted to post this to get some advice on what I should look for when walking an older home like this as well as make sure I didn't miss anything in the deal itself!

https://www.biggerpockets.com/buy_and_hold_results...

Thanks!

Hey Travis, 

Yes I did learn the hard way but it has ultimately worked out in the end luckily! I am currently in a meeting but will PM you when it's over.

Thanks! 

 Yup, exactly! Think I am getting the hang of this :) Thanks!

Thanks @Julie Marquez , we definitely have learned a lot! Especially that we will be accounting for 10% in management fees for each property! Haha!  

Hey there, Tim Vecchioni here. I am 31 years of age and reside in Annapolis Maryland. I currently own 1 rental property which happened simply out of survival. My wife and I bought our first home, a townhome in a C+/B- neighborhood and happened to end up next to neighbors who weren't the best and we ended up being robbed by them. They were stupid about it and cashed checks they stole at the bank. Obviously on camera, caught and arrested. Needless to say, the wife didn't feel "at home" anymore and we had only been there a little less than a year. We decided to move but obviously were upside down on our mortgage so we decided to rent it out. We currently have been renting it for 5 years now! It is not a cash flow property by any means. Rent is $1,725 and the mortgage is $1550 with an HOA of $100. So now after reading a bunch here and listening to podcasts, I now know that I have nothing for vacancy, maintenance, cap exs, etc. We have been managing it ourselves which bit us in the arse with the first tenant. They were there for 3 years and destroyed the place. We took them to court and because we had no idea what we were doing, found out that our contract with them wasn't exactly correct and because we left a couple things out that by law here in MD have to be in there, we had to forfeit the deposit. However, we did get around $1600 of the $6000 we spent to repair the house. We obviously then fixed the contract and screened our next tenant the best we could and he has been awesome! Has OCD to the max and keeps the house better than I ever could! We actually have been paying the HOA out of our pocket since the beginning of this to try and keep that extra $175 in the rental account in case something does go wrong. I figured that out on my own before ever coming here! Props to me right!? Haha. Anyways, we do plan on selling this property once he decides to leave. He has told us that he doesn't plan on leaving within the next couple years, so we are just riding him out building equity until he decides to move.

With the backstory done, I am here to put in the work to start finding successful properties to buy and hold. I would love to be able to use the BRRRR method to get started because I do not have any money for down payments, rehab, etc. I do have a few ideas in mind to get private money if I find a great deal but that is my first step! I will keep this part short and just say it is nice to finally jump in here instead of lurking around! Look forward to discussing real estate with you all and becoming successful in the business!

Tim Vecchioni

@Brent Coombs

Thanks! All I needed to hear! Yes, I also know I shouldn't guesstimate like that. For this property in specific, would you just lower the purchase price to get the houses "number."

Bump hoping to get some advice!

First things first. I am not saying this is a great deal, or would even be accepted. However, I am looking to make my first purchase. Well second, kind of, but that is a different story! Looking for advice/direction. Thanks!

I am not a paid user, but here is the link from the calculator. Hope it works!

https://www.biggerpockets.com/brrrr-calc/294763

The house is listed at $195K and is a foreclosure. Been on the market some time now. Needs a lot of work but it looks like from the pictures (haven't walked the property) that the floors and such have already been removed like someone was going to try and rehab it. I feel the repairs may cost a little more but not much as I would be doing some of the work myself. I tried to find some comps for the ARV and I actually think I may have lowballed the ARV a little. So with 20% which I would need to find via private money/family/etc, The total project cost is $201,125. Now say everything goes perfect and the rehab costs $20K, we do it in 1 month, and find a tenant right after. Come a year down the road and the property is now "seasoned", comes the time to refinance. To my understanding, banks will only refi for 70% of the ARV/Appraised value, correct? Now with that, would leave a loan of $175K if it appraised for $250K. So with the original loan set at $140K, that would leave me with $35K which is $26,125 short of being able to pay off the private money. Yes, at the $175K, there is now $75K in equity but with no way to touch it? Also after the refi, there isn't exactly a cash flow but from reading about BRRRR, that is ok because of the equity you now have in the property. I have also heard/read back and forth some banks will give you a loan at appraised value, some won't. Is this true? If so, this problem wouldn't be a problem obviously. It would also put this particular property in a negative cash flow. I am also not positive this property would actually pull the $1,700 a month in rent, but it isn't that big of a stretch being an A/A+ neighborhood.

So am I missing anything here or is all of my logic, thinking correct? Also, some answers about the banks and refinancing maybe with some links/proof would be nice. 

Thanks again! And be nice, I am new! lol. Can't wait to get my feet wet and eventually be interviewed on the podcast!