All Forum Posts by: Aisha E.

Try Justin Bank in Justin. They are investor friendly, and do give out loans for construction that concert to long term conventional loans at slightly higher rates than the current market rates, but much lower than hard money lenders' rates.

I recently bought a house from two brothers who had inherited the property as part of their deceased mother's estate. I paid them what they were asking for it; almost the cost of the land only. The 90 house needed a full gut rehab since it had been vacant for almost 12 years. I converted and expanded it from a 2/1 to a 3/2, with an entrance foyer, new master bathroom, master walk-in closet, a laundry room, thereby adding 255sq.ft to the original house. Location: Rapidly changing area with new commercial development less than 1/2 a mile away, and older houses being rehabbed. A sought after charter school. Huge swathe of land in 100's of acres 1/4 block away ready for a developer to swoop in and start building. Very stable neighborhood in transition. 3 exits away from downtown. The numbers: BP: $15,600 Rehab cost:$49,000 ARV: $110,000 as of right now Market rent: $1050 The house sits on a 10,000 sq.ft lot that I intend to get te-platted into either 2 lots, or get permission add a mother-in-law's cottage/structure in the back to be rented out separately. Following the BRRR principles, I started inquiring about refinancing the house. I was informed the lender will base his loan on the buying price and not the appraised value of the house as it stands. My point: it is my business savvy to finagle a good deal, create value out of something. This seems like getting penalized for being smart. Please help me figure out a way someone else has come across for a situation similar to this, and how they were able to get their cash out. Why is the improved asset not being regarded as the product against which to do a cash-out refinance. I intend to keep the house for the long term. I intend to buy more houses and lots in the area. Thank you.

@Sam Leon, I have gotten many ugly pink and peach coloured tub tile surrounds to neutral colors for my clients. You would not believe what a difference such a small thing makes to make these old bathroom time-navigate to this era. The trick to keeping the coating intact is not to use ammonia, or bleach containing cleaners. How will you control your tenants not to do  that in a rental property? It is not the process but the maintenance that requires care.

To answer your question about breaking soap dishes and toothbrush holders, I would just take out the whole line of tiles above that area and use accent tiles so that it does not look like an "oops" correction to an accident or mistake. Turn it into a focal point. It is so easy to take out 4 or 5 tiles and replace it with something unique so it becomes part of the design. You can use remnant tiles, even glass mosaic ones for the accent line. Just my 2 cents. Try to work with something like this that is bound to happen and turn it into a positive thing. 

I do not know what % of ARV rehabbers are looking for in your area, but the usual formula that most investors use is 70% of the ARV minus the rehab costs. Assuming your rehab costs are correct and ARV is based on reliable and pertinent comps,

So for your deal, taking the 70% of ARV of 205,000= 143,500

- 17,000 = $126,500 (Your maximum asking price)

Again you know your market better, and should know what % of ARV investors are looking for in your area.

@David Foreman, can you share what the Seller's Affidavit Agreement should state? I am dealing with Sellers - heirs to their mother's property -  who do not understand that signing an agreement with me will be binding if all terms of the agreement are met. One of the heirs keeps talking about getting a better deal, and I want to protect my interest in the property. The property already has city imposed liens on it, that will have to be cured to get a clean title.

Sherry, 

Since I am not allowed to say anything here, you can send me a message, and I'll help you out with options to look at regarding the bathroom add-on.

Originally posted by @Hersh M.:

Thanks @James Palin

Yes, I did some due diligence and I too am seeing currently most good quality rental markets are super hot (probably borderline crazy). Also too many all cash buyers along with too many bids. 

Thanks for the areas you mentioned. Is the story similar for Arlington and Fort Worth side? Any neighborhoods I should stay away from (quality/crime wise)?

 The north part of DFW suggested by Mr. Plain is overpriced, with the market saturated with new families relocating, as well as some overzealous investors skewing the market pricing by paying too much. Please remember, with the influx of newer families, the same "good" schools will start to feel the pinch with overcrowding. New schools are slow to be sanctioned and built, leading to short to mid term negative effects on the quality of schools. 

Arlington and Fort Worth have some great areas to invest for the buy/hold investor. You should do a demographic/job growth study of any area before committing yourself to any form of investment. What drives the market in the short term, may not provide the long term stability you are seeking. Study the 4 quadrants where I-35 crosses I-30. NW corner is downtown Fort Worth. For now stay in the NE, and SW corners of the said quadrant. Also look into Forest Hill, and Everman areas along I-20. These tiny cities are off most investor's radars, but because of their proximity to major highways,provide some stable neighbourhood with brick 3/2 SFR houses at very reasonable prices, and good rental rates.

Fort Worth downtown area would work too.