All Forum Posts by: Barbara G.

Hi Michael

Sounds Good. Can you tell me what a term sheet is??  We are going to close on a duplex that we have to renovate.  A bank told us they would refinance @ 70% of the appraised value.   Is that the usual?   

Thanks

This would be easier to understand if you put a $ dollar amount.  When you say 2.4 its work to figure out how much it is in Dollar amount

JOIN  Real estate club in your area.  There should also be Meet Up Real estate groups

Why don't you join an Real Estate club or a Meet Up group in your area?

Hi Doug

I believe we made a mistake with out first 2 duplexes in the way we financed them. Instead of doing a BRRRR we just got conventional Mortgages with 25% down and then although they positively cash flowed we had to put all the positive cash flow back into renovating the 2 duplexes piece meal. Now we have owned them 14 months and done $20,000 + in renovation and still need $16,000 more in renovation. Big mistake!!! We have not been able to take any money out. Do you think we should take the cash flow from another property that we are closing on that will be cash flowing, and accelerate the rest of the renovation of these original 2 duplexes. Then, af\fter they are fully renovated, we could try get a Refinance mortgage for a larger appraisal (probably at 3/4 or 1 point less in interest) Would that be a good move? Would the fees to refinance it be high??

The original 2 duplexes  appraised at $332,00 (14 months ago when we closed)  and we think they  would appraise at $450,000 or $475,000 now with the renovations.   Would the original bank do this or would this portfolio  bank do it?  Could we only get 70% of the appraisal?  The new Mortgage would be for $365,000 or $382.000?  Would that make sense?

Your advise and input would be appreciated.

Sounds like it is coming along.  When was the house built?  Can we see a picture of the outside, the exterior of the house and of the bathrooms?  are the bathroom walls tiled? What are your plans for the bathroom wall and the tub surround?  Has the electrical been updated or do you have a fuse box?  Is the bank that is going to Refinance a local bank and have yiu had conversation with them about this renovation,  You  seem to be moving right along.  We are waiting to close on a duplex that also needs complete inside renovation so it is really interesting to me seeing your progress.  It sounds like you will have a better cash flow and and a higher appraisal then we will have 

HI William,

Are you keeping the paneling on the first floor?  Did you get a plumber's estimate?  Do you need an electrician or can the handi man do all the electrical?  Where in Conn are you doing this?  Do you think you can finish this by the end of May?  Its a real interesting project.  Can you get it Refinanced when you are finished with the Renovation and the Renting or do you have to wait for a period of time?  On Our project the Bank said they will  refinance  at 70% of the appraisal.  What percentage will your lender refinance of the appraised value?

BG

It certainly looks like you will do well with this 3 family.  Why are you replacing the bathroom window with  solid glass Brick and how much does that cost?  I remember when we bought   coop a long time ago and the bathroom window frame and  apron was all water damaged.  We had the sill and the area cut out and replaced it with a Corian window sill and Corian apron and that worked  well for us.  

Actually your renovation estimate of $20,000 seems low.  Do you think you can do all that renovation for that price?  What will the cost of the Roof repair come to?  Are you doing any of the work yourselves?  Is reglazing the tub the best approach, rather then replacing it?

Good luck with this project.  It sounds Good.

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HI Michael

No we have NOT done this BRRRR 4 times. This is the 1st time. Our other 2 investment Duplexes were conventional 30 year mortgages where we did not renovate before hand and are still renovating them out of our positive cash flow. If we don't get these refinanced we will still keep them BUT we will not have the capital to Repeat the BRRRR on our next property. Our plan is to buy 10 Investment properties using BRRRR. If we can do this what can we do for the 11th investment property?

I remember reading that you bought a 5 or 6 multiplex one bedroom building that you had a BRRRR plan for But you did not say what happenned on the refinancing end? I am interested in knowing how you handled that?