All Forum Posts by: M. Anthony Contrascere

Hello everyone, does anyone know of someone unloading a portfolio of properties, or wholesaling and properties in Mansfield? If so, I would be interested in getting their contact information.

Thank you!

Welcome to Colorado! Im from Ohio, born and raised, so I know what you're going through....the real estate market here is night and day different than Ohio/PA. 

While BRRRR is nice where we came from, it doesn't work quite as well out here. Appreciation is fantastic, but like most people said on this thread, you have to be creative to find a good deal. Even then, it may be hard to BRRRR.

Also, cash is king! Lots of people moving from Texas and California with lots of cash and buying up houses here because its cheaper. If you find a investment home here that youre interested in, find ways to sweeten the deal for the seller, because you may be competing with multiple cash buyers. 

I dont mean to sound negative, this market in CO was barely hit by COVID and is still going strong. Its just a completely different real estate environment than the east coast. Reach out if you have an questions, and good luck!

At least in the CO Springs area, our market was so strong before this virus hit, so Im suspecting there wont be as much of an impact here as other places with weaker markets.  

On the flip side, you can’t put a third of Americans out of work and not expect to see it impact everything, including housing. We have no precedent for what is happening though, so no one is really sure of when it will start to really impact the market. For example, between mortgage forbearance being mandated and the time it takes to foreclose, it could easily be 6-12 months before we see any foreclosure related sales.

Anything written by a realtor or published by any organization in the real estate industry (NAR, HBA, PPAR, Lenders, etc.) should not be trusted. It will almost certainly be overly optimistic until something negatives hits them like a wrecking ball across the face. Unfortunately Im already seeing real estate entities put out misleadingly optimistic information. We'll see how that changes in the near future. Just read all of real estate forecasts with caution and discernment!

@Dan Gamache it would need apprx $25,000 in repairs. What are the terms on the original 10% down loan you speak of? Higher interest? Is it a full 30 yr or is it shortened? My lender didn't mention this option to me

Thank you all for the clarity! Im in the stage where I have all this information swimming in my head, and am trying to organize it all. 

@Gil Segev you said "If your ARV remains 400k, you will be able to get 300k refi loan (0.75*400k ARV) which would cover 279.2k of your original loan + 20.8k of your out of pocket cash and leave 84k of your cash in the property."

Can you explain where the 20.8K out of pocket comes from? Thank you

Hello BP,

I am familiarizing myself with using the BP BRRRR calculator, and I feel like I may be missing a few steps while calculating the REFI step. I'll include my example property below:

• Purchase price: $349,000

• Total cash invested (20% down payment, repairs, closing): $104,800

• ARV: $400,000

• Cash-out refi at 75% (per mortgage lender): $300,000

Correct me if Im wrong...I would subtract the $104,800 from the $300K = $195,200. Subtract loan fee/escrow account = $186,000 after refi. 

That is money lended to me after I pay off original down payment/closing costs/rehab costs...? I would really appreciate some insight if I am calculating something incorrectly. Thank you in advance! 

If there are consistently decent returns, is this something that would be attractive to investors that want a cash flowing property? I dont want to get the cart ahead of the horse, but here in Colorado tiny homes are emerging to be highly talked about...even among the investor community Im in touch with

@Matthew Paul My thought is that there is efficiency in scale...having two to three tiny homes would make my margins very tight (if not negative), but the more homes placed on the property=more attractive to buyers=increase the overall value of the property long term. Id appreciate any more thoughts Matthew, thanks

Hello Everyone!

After reading all that I could on BP about tiny homes, I came up with a thought that I wanted to run past everyone...

If I buy a piece of land in a relative growing location, what would be some downsides of placing tiny homes on the property and renting them out? I understand that there are zoning issues to deal with, which may make it more difficult/near impossible. The scenario I am thinking of is buy land (1-2 acres), dig and set up utilities to each "plot", place a tiny home, rent it out, and repeat. 

I'm trying to think outside the box, I would love some feedback and helpful information to help me decide if this is even worth pursuing. 

Thank you BP!

I agree, its alittle tedious at first, but I just have to keep doing it over and over to become more familar with it. Thank you @Brett Baginski