All Forum Posts by: TJ Walstead

Hey BP Community!

I've been fortunate enough to secure a 4-plex in the Midwest from an investor that has excellent figures; cashflow is 12%+ as is. All units (2/1 and 1/1s) are on are on the main level and everything is virtually on auto-pilot. Then there is (**drumroll**) 2600sqft Basement!  We've obviously considered additional apartments (most expensive) all the way down to storage which is basically free.

What would you do with all this space to create value and incremental profits?

- Basement is concrete block, in great shape

-  Lots of clearance, probably 8.5ft

- No egress windows

- Small town of 700, median income 53K

- 1 bed 1 bath rent is $550

Awesome, I appreciate the input Tim! Very valid point; in my head I was constraining a future purchase to what equity is present, but you're totally right we add funds. Thanks!

Hey Shaun - Disclaimer this was for a non-BRRRR, but I believe elements apply - I just fought a low appraisal off.

I had a first round come in a 329K, embarrassingly low. I provided my comps and justification for why this was low and the same firm came back 24 hours later with a 342K - not bad, but I was still not satisfied. 

I approached another bank and bit the bullet on another appraisal. Provided the same diligence and appraisal came back at 374K; that was a 45K difference! Well worth the frustrated evening pulling and analyzing comps. 

Hope this is helpful! 

Hi All! I'm a newbie to BP; I'd love to connect with you!

Goal
Make the best use of the equity we've accumulated in one of our rentals (including considerations on capital gains tax)

The Dets:
We have a 3/1 SFH that we house-hacked into a LTR here in a Minneapolis burb that has appreciated nicely. Approximate market value is 340K (purchased at 280K) and have 97K in equity. The property sits on a little over an acre and is not a killer situation for a LTR (splitting/building is not in the cards). I have a bank willing to go 80% on a second lien HELOC but I don't want to cut the legs out from a high octane 1031 later this summer by bleeding too much equity out. We're wading towards the 8-24 unit style of multi-family this year. The cashflow is not strong and this feels like a time to harvest. We have plenty of deals in our pipeline and the capital has lots of uses right now! We'd like to wait on a sale until June when leases are up so we can stage well. We're leaning towards extracting some of that capital for immediate use in our deal flow. A HELOC would net ~30K with minimal closing costs; that's a down payment on one of our LTR deals under contract. 

What would you do?!