All Forum Posts by: Vincent Kaliwata

@Glenn McCrorey Thank you for the referral!

Kind Regards,

Vince.

@Austin Davis Thank you! I will be gathering material costs this week and will keep you in mind. Again, I appreciate the response. 

Kind Regards,

Vince.

Hi guys,

Doing my first rental (Single family split home in North-East Cedar Rapids) turnover and looking for contractors in the cedar rapids area that are reliable and have fair-pricing.

My list of To-Dos

House siding repairs & painting exterior of house

Landscaping (Mulch, bush trimming)

Remove privacy fence and install chain link

Interior painting

Cabinet painting

Deep cleaning

Looking to complete repairs and upgrades in 2 weeks starting Aug 1st, 2023. Need to get the property marketed, showings and get a renter by September. I will do as much as I can by myself but would like to understand costs of contractors to determine how much help I can afford.

Any recommendations for reliable contractors will be greatly appreciated.

Thank you!!

Vince.

Hello, I wanted some opinions on this analysis on a potential BRRR. I have never approached a hard money lender so this will be all financed by me. This will be my first BRRR. All thought are welcome.

Looking at a property: 2 bed, 1 bath 720 sqft. Built 1918. The property is 2 houses from my place. Asking $59K. Comps are priced at $80k - $90k. Property is owned by an LLC for 21 yrs. Open square limestone basement, relatively clean and has forced air and central air. Roof looks pretty good and furnace and water heater were replaced in 2015. The interior needs TLC. Feels very old but could easily be restored. Beautiful neighborhood. Just one side of the street is "low income" and the other is "medium-high income". I live on this street, it's really not a bad place.

Repairs estimate = $20k

This is my intended offer. ... $30K cash.

All in: Buying Price + Renovations + refinance closing cost = $30K + $20K +$3K = $53K

Rent approx $700-$750

Refinance = 0.75 * $80(ARV) = $60K (I am using a lower ARV for worst case scenario)

Profit: Refi cash - All in = $7,000....not much but I guess I'll have the rental income.

If I use a $90,000 ARV: Profit = $14,500.

If I use a $100,000 ARV (really pushing it): Profit = $22,000

Thoughts?

Wow. Thank you for the responses! This initial post is over 6 yrs old when I first started listening religiously to the bigger pockets podcast. I never even realized I had responses. I guess I stuck my head in the sand and "Life happened". wow. Time flies.

I went with option 2 and got married (not to the tenant) shortly thereafter and moved out the house. "Jean Bolger" the tenant is an older lady and has been the best tenant ever. You were absolutely right. The property is on a 30yr fixed and is my only rental property. I just got "too busy"/not disciplined to stick with the real estate program. 

Again, thank you all for your responses... 6 yrs later =). 

BiggerPockets family rocks!

I'm a recent graduate and have been working for 1yr. I want to get into real estate; a fine business to park and invest my income. Thus far I am renting but looking to purchase a house and start gaining equity.But what should my first investment be? I think the first step is very crucial. 

My options:

1.) Get a duplex ideally. Owner occupied, rent the other half to see if I am cut for the landlord business. I have found duplexes ranging $115,000 - $130,000. Some are decent looking(from online pics), some not so decent looking. This will be in the Cedar Rapids, Iowa area...Rockwell Collins, Cargill, General mills, TransAmerica, Quaker, Schneider Electric, Dupont, Alliant Energy, several great companies around the area for the size of the city. I then also plan to get a much cheaper rental property <$80,000. Just to rent out.

2.) Get a split level. Owner occupied(live in the basement), rent the top half. This will play more like having a roommate or 2. The split levels are in much much better condition when considering $115,000-$130,000 price range. Seen a few @ open houses. Seeing that I will have to live there, it's nice to know they afford a great std of living, clean, no immediate repairs, etc..  Also in Cedar Rapids. I then also plan to get a much cheaper rental property <$80,000

3.) Get a property <$200,000 in a college town. University of Iowa. Great deal of medical students, hospitals, etc.. Owner occupied as I will live there and rent other rooms. The risk is higher but the tenants will be of higher quality. I will only be able to buy this 1 property unlike option 1 and 2 where I can buy 2 properties 1 owner occupied and 1 full rental.

In both cases I qualify to can get a 10/1 Arm for the owner occupied no downpayment and option to refinance to a 30% fixed in near future and 30% fixed for the rental property. 

What do BP members think of my options? I have never bought a house before. First time for everything real estate. I just want opinions and advice. I am 25yrs, single at the moment and have no family that I need to consider in my decision. I think this weighs alot in the amount of risk I am willing to take. I work a fairly good job so my fixed income can support any decision I want to go with.

THANKS IN ADVANCE FOR YOUR OPINIONS!!