All Forum Posts by: Andrew Kougl

@Evan Bambrick

Nice, did you do any of the work yourself or just hire it all out? What did it need?

@Azinga S Ming

You simply need to talk to a lot more agents. If you have to guarantee to pay an agent before they'll work with you, you're talking to the wrong agent. A great place to start is investor referrals. Identify the market you want to invest in and connect with investors there through BP.

@Myron Jackson

What goal are you trying to achieve and by when?

@Ryan DiCanio Right, totally get that. But are you house hacking a dump from day 1 or is it a fully updated multifamily? The way you acquire the property will dictate how much you should have in reserves.

Remember, you are buying multifamily, only people who own multifamily are investors, 99% of the time. Why do investors sell a cash flowing asset with no deferred maintenance in a good area? The answer is they don't, 99% of the time. In my experience the properties I've bought needed something either immediately or within the first 6 months. Make sure to get inspections and go in with the proper reserves and expectations and you'll be fine.

To get back to the D neighborhood, call up PM's or ask other investors in the area. Generally the realtor.com/trulia crime map is a good starting point. Since you are house hacking you likely know the area so this may be moot but just thought I'd mention it.

@Ryan DiCanio

When you say "after house hacking", is this a live in flip? Are you BRRRR'ing it? And because it's freshly renovated you have lower repair reserves? Is the reason you don't have a PM expense because you were a live in landlord and so you anticipate doing that role longterm despite you not living in the property? Trying to guess as to what type of properties you are acquiring, but without further details like condition of the property it is hard to know if your estimates are sufficient.

@Ryan DiCanio

What numbers are you using for vacancy, repairs, Capex and PM fees? That's usually 30% of rent for me. Then you have to pay taxes, insurance, utilities, and the mortgage. Once all that's been deducted you're left with cash flow.

Andrew

@David Ruiz

Looking at the pictures online and the fact the price has dropped twice in this hot market we are in, I'd be very cautious. This has the potential for money pit written all over it I feel.

I don't see anything for rent nearby on Zillow while there is a lot in Chattanooga. Why will renters want to rent your place vs the convenience of being much closer to amenities? The layout seems super funky just from the pictures, have you walked it personally?

I read your post as if you think it's close to rent ready but I do think it'll be a total project to get it to be competitive as a multifamily building. Obviously a ton of potential if you do turn this into a spa like retreat as a short-term rental like you said but it's going to be work. As a long-term rental it's going to be even more work.

In my experience, the more your property is "conforming" from day 1, the more money you make, ie. Higher CoC return. Listing says 12 apartments and 4 bathrooms that's really far from confirming to what people are expecting, that's more like a hostel setup.

I'd recommend a clear vision for this property and a construction estimate from a contractor to use in your calculations. It needs to be transformed into something usable, like an assisted living facility, or totally redone into individual units with attached bathrooms, to see the true potential. Either way it's a huge challenge for a first time investment.

@Emily Fackler

How did you get the seller to agree to a price below the appraiser's valuation?

@Akshay Johar

10%

@Alisha Boulter

Hi and welcome. I haven't BRRRR'D before myself but Lexington is a good market although really hot like everything else at the moment. Good luck