All Forum Posts by: Vincent Filia

@Aimee Tarte Because of the 2008 crash the way banks treat credit have changed a bit. I don't know the exact number of days if you get a hard pull on your credit, any subsequent hard pulls don't affect your credit. The credit bureaus let you shop around for rates without it 'hurting' your credit more than once. 

Are you looking for a local bank or are you exploring your options?

@Michael Tyler I may be going off track from the main reason why I wanted to post but I just wanted to clarify with you. Do they also take into consideration the quality of the property when doing the appraisal? I feel that this is a stupid question and I should know this but I don't want to be caught with my pants down having an ARV influenced by houses that have no updates.

Hi BP, I'm looking to start my first BRRRR project asap. My father and I have been looking around my area (Pittsburgh, Pa) and I think we found a good one. It's listed at $49,900 and in surprisingly decent condition, 3bedx2fullbath. ARV is $125k however, I'm a bit cautious with my numbers because there aren't very many recent (within 6 months) sales to go off of. I calculated ARV by finding all 3x2 homes in the surrounding area but I went as far back as sold in the past 3 years. I'm not sure how much of a problem this is but to counter any potential problem I included market appreciation in the selling price of the comps. So if the house sold for 100k back in 2017 I calculated what it would sell for today using my target area's appreciation rate. Any experienced investors have thoughts on this?

Anyways, my official question is: What are people using to get decent quality materials and appliance packages. Our end game is to hold this as a rental for a long time so we want to use tenant proof materials, appliances, hardware, ect. Where is everyone getting their materials from? Big box stores? online for appliance packages? Craigslist? 

Like I stated earlier, this would be our first BRRRR project. Like most new investors the cost of renovations is a highly sought after formula. I have not yet read J Scott's book yet (I plan to) but saving money where you can, in my opinion, is very important to help your bottom line when BRRRR'ing.

Thanks in advance!!

@Aaron K. No not necessarily. I've seen a few homes for sale that have a detached home included in with the parcel. That would be Ideal!

Hi BP Fam!

I've been house hacking for 2 years now, I can definitely see why people stick with it for so long! Here's my issue, as nice as it is having a super low housing expense, low down payment upon purchase, etc ( i know there are many other benefits but why beat a dead horse?) I'd like to not raise a family in less than a 500 sq ft half of a duplex and I know I could get a nice rental income($675-$700 monthly) from the unit I'm using now! 

I'm weighing my options and I'd like some input from the PROS! If I were to move out and purchase a 2nd home I'd like to BRRRR it as an exit strategy.

Thoughts?

@Travis Wylie thank you so much for that! Very helpful

@Tim Herman Thank you so much for the insight. All of this is valuable info & I'm happy I didn't pay a "guru" to find out.

@Jaron Walling You hit the nail on the head, I am house hacking right now but that's the extent of my experience. I'm trying to get in and I'm leaning towards BRRRR more and more but I need to find a deal, capital is also a roadblock of mine but I'm working on that every day!

@Tim Herman I've never thought of that! How would you get a contractor to walk the property with you without them feeling they're wasting their time? When you say contingency fund do you mean a savings account in case, lets just say, they find more problems while doing the work?

Sorry, I'm really interested in soaking up any and all info!

@Tim Herman Thank you for bringing things into perspective for me, I have a hard time with estimating rehab costs. The property is already gutted and there is not flooring, so it sounds like to me $25k for rehab is way under. Is there a price/sqft I should be following for my estimates? I know this estimate isn't fool proof but what would you suggest? I read somewhere that cosmetic rehab (paint, flooring, minor stuff, etc) should be around $15/sqft but I'm not sure if South Western Pennsylvania is the same when it comes to rehab costs!

@KaSaundra Johnson Welcome to the club! So, I'm by no means experienced and I've been trying to find this out myself. 

Here's what I came up with so far... Wholesaling, Lease Sandwich Options, and Finders fees are among those that I don't yet know about. The problem we have is that we have basically no leverage whatsoever unless you have credit & work history.

Like I said I'm not an expert but what I can say is that after reading, listening, and calculating is that the more skin you have in the game (capital, leverage, relationships, credit, knowledge, etc.) the better. You're like me that I don't have an abundance of these. 

Keep me posted if you found something I don't know about!