All Forum Posts by: Zach Wagner

if it doesn't appraise, you still have to pay your lender back. appraisals are unpredictable... you can do everything right and still fall short. and... that shortfall has to be covered... with CASH. =-)

I already have private money lenders lined up. I fully understand that. And I'm ready to pay my private money lender the cash needed if the appraisal is low. However I know if I have a conservative ARV on the low side where the numbers still work, I'll be okay. I know if analyze the deal with a very high ARV expectation, it may come up short. Thank you for pointing that out though. That's definitely a very important detail that may help someone else on here out!

0 Votes

Quote from @Remington Lyman:

Quote from @Zach Wagner:

Hey there everyone! I'm a newbie to real estate investing and I have been stuck in analysis paralysis. I've been trying to gain as much knowledge as I can before pulling the trigger on a property. I live in CA and I'm looking to invest out of state. I was wondering if anyone knows of good cities to BRRRR in this current market. I'm looking for properties in the B or C class neighborhoods. Primarily single family homes (all in purchase + rehab around $100k). My main focus is cash flow but I would love for the property to appreciate over time as well. Thanks in advance, any advice or insight helps.

I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

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

I invest locally in Columbus, Ohio

Thank you. I have done a lot of research on out of state investing and I definitely see the importance of having your core 4. I recently read the book Long Distance Real Estate Investing By David Greene. Great read for anyone on here looking to invest out of their own state.

1 Vote

Quote from @Quentin Jivery:

Quote from @Zach Wagner:

Quote from @Quentin Jivery:

Quote from @Zach Wagner:

Quote from @Quentin Jivery:

Quote from @Zach Wagner:

Any luck on BRRRS recently?

Im just starting on my investment journey. So I have yet to get a property under contract. Im doing as much research as I can because investing out of state can be risky. However, I'm willing to make the sacrifices necessary for a positive outcome.

Where are you looking at properties? On the MLS or somewhere else? Are you calling agents and asking them, I’m only asking because I’m trying to figure out where to point my energy as far as analyzing deals and finding them.

I don't have access to the MLS as far as I know. I believe you have to be an agent to do that. I search on Zillow, Realtor, etc. If I find one in a market that meets my criteria I take and analyze it myself with rough numbers, using one of the calculators provided here. I'm in the process of searching for a rockstar investor friendly agent that can use their knowledge to help narrow my results and be the start of my team.

Where are you looking for that realtor? Are you looking for a single family house hack? Or a single family rent and then refi down the road?

Thanks for taking all my questions!

Honestly I'm looking for realtors in areas that meet my criteria. That was the point of this post, to find those areas that work for the BRRRR method in my price range. When I narrow it down to a few markets I want, then I will lock down a good investor friendly agent in that market to help me find good deals. And to answer your second question I'm looking for single family that I can rent and the refinance down the road. Essentially the BRRRR method.

0 Votes

Quote from @John Williams:

Quote from @Zach Wagner:

Make sure you check out Clarksville, TN (where cash flow meets appreciation!) We've got a very attractive market, particularly for out of state investors

Thank you, I will give it a look! If it fits my needs I will be coming to you for some property management questions and maybe we can team up.

0 Votes

Quote from @Nicholas L.:

@Quentin Jivery

with small multi you have to be sure you're factoring in all expenses. with a single family home you can typically shift more to all of the expenses to the renter. with small multi, that is sometimes impossible. some things to watch out for -

-utilities that aren't split

-yard upkeep / groundskeeping / snow removal

-additional wear and tear on shared facilities like entrances and laundry

-parking

if you're cash flowing $200, but you forgot to factor in utilities that cost you $200 a month... now you're breaking even.

@Zach Wagner

you said you want to buy "very distressed properties that I can buy all cash via private money lender"

I am not saying this can't be done - just that it's going to be very challenging to do from thousands of miles away

and very expensive... you can't borrow 100% of the purchase, 100% of the rehab, 100% of the closing costs, and 100% of the holding costs

you need cash

Yes it will be challenging from far away. But I'm up for a challenge and I believe its worth it. Actually I believe I can borrow 100% of all associated costs. Thats what a private money lender is for. They give me the capital(cash) to fund the deal and then I pay them back plus interest after the refinance.

0 Votes

Quote from @Quentin Jivery:

Quote from @Zach Wagner:

Quote from @Quentin Jivery:

Quote from @Zach Wagner:

Any luck on BRRRS recently?

0 Votes

Quote from @Bernard Joseph S.:

Quote from @Zach Wagner:

There's a recent thread here about investing in Mississippi, someone posted about readily available brrrr/flips within your price range. Run a search and you will find it. Potential does exist there

Thank you, I will give it a read.

0 Votes

Quote from @Nicholas L.:

@Zach Wagner

I think all-in at 100K is going to be tough. If it were easy to push the button to do a BRRRR in Ohio or Indy with 100k we'd all do it. I'm trying to do LOCAL BRRRRs in PA and having a heck of a time! =)

Where are you located in CA? Are there any markets within driving distance you can start in instead of rolling the dice thousands of miles away?

Im not looking to BRRRR just anything. I mainly want very distressed properties that I can buy all cash via private money lender. I'm from central CA. As far as I know of there are no markets near me in the price range I can afford currently.

0 Votes

Quote from @Andrew Postell:

@Zach Wagner ok, what part of California do you live in?

I currently travel California for work. However, I'm from central CA. All the markets are too expensive for the capital I have on hand. I plan to invest here in the future after having a good portfolio built up and some more capital. Until then my best bet is out of state.

0 Votes

Quote from @Quentin Jivery:

Quote from @Zach Wagner:

Any luck on BRRRS recently?

0 Votes

All Forum Posts by: Zach Wagner

Zach Wagner has started 2 posts and replied 14 times.

Post: Long Distance BRRRR Advice

Post: Long Distance BRRRR Advice

Post: Long Distance BRRRR Advice

Post: Long Distance BRRRR Advice

Post: Long Distance BRRRR Advice

Post: Long Distance BRRRR Advice

Post: Long Distance BRRRR Advice

Post: Long Distance BRRRR Advice

Post: Long Distance BRRRR Advice

Post: Long Distance BRRRR Advice