All Forum Posts by: Tom Cotter

Hello All!

I've been a member of BP for sometime now, but I have decided to actively pursue flipping again. Many years ago, I started investing in San Diego purchasing properties at the courthouse steps and distressed properties on the MLS. I moved to Northern Virginia and I began to put my focus on acquiring rental property. I enjoy the buy and hold strategy, but it's difficult to scale, which is why I'm pursuing the fix and flip model.

I know the NOVA area is very competitive, so I'd love to connect and network with like minded individuals in the area, and see how we can help each other out! I'm working primarily in the NOVA area with an emphasis in Prince William County.

Wholesalers and hard money lenders, please feel free to reach out!

4 Votes

Washington, DC

You were thinking about putting carpet over existing hardwood floors? I’d highly recommend that you keep the existing hardwood floor if possible.

If they look in bad shape, generally they can always be sand and finished.

If you absolutely need to replace the floors, as a poster above me mentioned, you should do LVP flooring.

I have LVP installed in my primary residence and every person that’s seen it thinks it’s real hardwood floors.

2 Votes

Originally posted by @Guifre Mora:

Originally posted by @Garen T.:

I own a duplex that I purchased new. I have a pretty good idea of what it is worth, but I'm trying to reconcile that with what Zillow is reporting. It is a duplex with just one address in zillow but is for both units. However, Zillow shows the details as just one unit. It shows the address as a 3 bedroom and 2.5 bath at 1650 square feet. If Zillow show the value of the unit as $400K, would the actual "Zillow" value of the duplex be 2X that amount? That seems REALLY high.

A realtor was in a mall during Christmas.

He decided to sit on Santa's lap.

Santa asked the realtor what 2 things would you like me to bring to you for Christmas?

The Realtor said:

I would like a purple unicorn.

Santa said unicorns don't exist.

What's your second item?

Zillow's Zestimate to be accurate!

Santa replied what color was the unicorn?

LOL! Well done haha

0 Votes

Craigslist has always been the best for me when trying to rent out my properties.

1 Vote

Hey Mindy, I wouldn’t recommend putting LVP on stairs, because on each tread will require nosing transition that hangs off and will likely come off or get loose over time. Which is why you generally never see it installed on stairs.

If your stairs are pine, you need to install carpet over them. If they’re oak stairs you can sand and finish them, install a carpet runner or just install carpet them (which will be your cheapest option).

2 Votes

Originally posted by @Ola Dantis:

Call the Police to help out on every tour to screen the tenant for alcohol.

Every night you call the police to follow you to all your tenants' house to screen for alcohol and if they are drunk while living on your property, you can just start the eviction process right there and then. You have the police with you after all!

Sorry guys I had to do it lol :)

This had me laughing. Lol!

1 Vote

Originally posted by @Eric Schultz:

Tom Cotter

I like your thinking on doing an equity transfer to leverage more cash flow; there is zero return on the equity value in a property.

Keep in mind the LTV requirements of lenders when you are starting to think about how much equity you can redeploy.

With a 760+ credit score, you should be able to get a 4.75% (or better) 30-year fixed cash out refinance loan on your rental property. Closing costs + 3rd party service fees could range from $2,500 - $4,000 depending on the lender. Keep in mind lenders will usually want at least 75% LTV on a rental property. The simple calculation may look like this:

Appraised Property Value x 0.75 = X – Existing Mortgage = Available Equity For Cash Out Refi

With your primary residence, you could do a HELOC (variable rate = prime rate + X%). Depending on your credit score and overall financial position, you could go up to 90% LTV with some lenders on a primary residence. Staying at 80% LTV is probably best. Don't over leverage into a situation that you don't have cashflow or cash reserves to handle.

The simple HELOC calculation may look like this:

Appraised Property Value x 0.80 = X – First Mortgage = Available Equity For A HELOC

Thank you for the detailed break down. I feel like this will help a lot other people in a similar situation to mine.

However, pulling out the equity from my rental didn't work out. The closing costs, plus the interest rate made it so that my new property would have to make a significant cash flow to compensate for the difference of my rental.

The problem with the HELOC is the interest rate which is considerable higher than cash out re-fi.

0 Votes

Originally posted by @Ozzy Sirimsi:

I definitely agree with @Lamont Marable, if you don't want to do it, you could buy multiple townhouses in Baltimore in not rough areas with high return and good appreciation after cosmetic updates.

The multi units in Baltimore are out of my price range. Otherwise I'd love to do it.

0 Votes

Originally posted by @Steve C.:

@Tom Cotter I'd give a listen to @Alexander Felice's podcast I think was # 306? He has an awesome plan using BRRRR method out of state, where he's basically rinsing & repeating with the same capital & adding a bit of monthly cash flow on each deal. I'd explain better, but he already did!

Thank you Steve, this podcast has jumped to 1st place for me out of my list. Listening to it now. For those interested its podcast #301, extremely informative!

1 Vote

@Igor T. Most markets where there is profit to be made will have a lot of competition.

0 Votes

All Forum Posts by: Tom Cotter

Tom Cotter has started 3 posts and replied 30 times.

Post: Investor in Northern Virginia Looking to Network!

Post: Hardwood floors or Carpet

Post: Zillow Values for a duplex

Post: Where do you have the most luck finding renters?

Post: LVP or Carpet for upstairs bedroom area

Post: Screening for booze abuse?

Post: How to best utilize $175k of equity?

Post: How to best utilize $175k of equity?

Post: How to best utilize $175k of equity?

Post: How to best utilize $175k of equity?