All Forum Posts by: Sara Frank

Help! Seller wouldn't allow access to the property without an accepted offer, so we got that and then after he double confirmed he'd be there today, the contractor no-showed. (and can't get a hold of the other 2 contractors that were also lined up)

Now What?? we have NO idea how much work is needed on the property and we're out of state.

I know having a great contractor is like having a golden goose...but any suggestions would be GREATLY appreciated.

Thanks!

If it's a new market/contractor I'll usually advise the client to pay the contractors for their time on an estimate. Since theres no guarantee the deal will even go under contract they aren't usually incentivized. We pay inspectors for their services regardless of the outcome of the deal, so contractors shouldn't be any different IMO (until a working relationship is formed). Don't need to pay them AS much as an inspector since the level of detail isn't the same, but a nice rate for their time goes a long way in at least getting them to show up and take you seriously.

1 Vote

Cleveland, Ohio

Quote from @Johnathan Le:

Quote from @Sara Frank:

Quote from @Johnathan Le:

Hey BP,

I've been eager to enter the real estate market for a while now and have been a dedicated fan of BiggerPockets for years.

I visited a 1-bedroom condo in Ballston yesterday, and it has a small den.

After researching comparable rental prices, I believe I can rent it out for $2,700, with the lowest comp being $2,400. This would be after I’ve lived in it for a year.

Considering the current interest rate, my monthly payment would likely be $4,200 with a 5% down payment.

Another option would be to put 20% down instead making my payment $3,500.

Should I rely on the expectation of interest rates decreasing, property appreciation, and rising rental rates? This area typically sees rent increases.

I’ve been analyzing property numbers in my area, and it doesn’t appear to be cash-flow positive at the moment.

How much are the condo fees? That can sometimes be the difference between the 500-700 negative cash flow and breaking even. Although I know it's not feasible to get into a single family home in the same price range. At best you might break even if you increase your down payment, but it's very rare to find a cash flowing condo when you're highly leveraged, even before rates went up.

Thanks Sara! Yeah, the condo fees were ~500.

Yes, i would have to put a larger down payment.

Also, I have been following your instagram for a few years now!

Omg thats awesome!! Love to hear it

0 Votes

Fairfax, Virginia

Quote from @Johnathan Le:

Hey BP,

I've been eager to enter the real estate market for a while now and have been a dedicated fan of BiggerPockets for years.

I visited a 1-bedroom condo in Ballston yesterday, and it has a small den.

0 Votes

Fairfax, Virginia

Quote from @Sidney Williams:

Quote from @Sara Frank:

Quote from @Sidney Williams:

Hello! I am new to BiggerPockets and real estate investing. I have been watching YouTube videos, listening to podcasts, and trying to analyze some deals to learn the basics. I am a recent college graduate and working a corporate sales job. It pays well but I want to build a business myself. My long-term goal is to build a portfolio of properties and attain financial freedom so I can coach swimming.

I would love to connect with anyone in the DVM area. I am primarily interested in the buy-and-hold strategy. It seems like the BRRR method would be the best way to go about it. I want to get started but I am struggling to figure out the next step beyond analyzing (definitely in analysis paralysis).

Hi Sidney! Happy to connect and welcome to BP. @Ned Carey and @Russell Brazilare 100% correct about price vs. risk in different areas of the DMV and capital needed up front for a BRRRR. Turnkey or light value add is a great option for a first deal and you can try your hand at property management/determine if you want to self manage in the future

Thank you Sara! I appreciate your insight. I have joined a few FB, LinkedIn, and Meetup groups and I am excited to attend the in-person meetings. Are there any you might recommend?

Ill shoot you a PM!

0 Votes

Washington, DC

Quote from @Aaron Toczylowski:

Hello, I am looking for any advice I can get on investing out of state, purchasing a fix and flip ( between my father and I we know a lot of contractors) , or even finding deals in an expensive market near where I live ( Annapolis MD area) My Plan would be to get a loan for a down payment. I’m really interested in investing out of state, but also apprehensive at the same time. I haven’t settled on a market yet. I’ve looked through Indiana, Alabama, Tennessee, the Carolina’s, and it seems I can get two properties out of state for the price of one in the market where I live (Maryland). Can anyone provide guidance on markets, any referrals, what steps to take first, or general investing tips?

I’ve already talked to a realtor in my area who wasn’t much help at all. I told him I was thinking about getting a loan to buy another property and his response was “ You don’t want to do that”, “you’ll have another loan to pay off”, “Why do you want to have 2 mortgages”, “your best bet is to save up your money to put 20% down”… That realtor obviously doesn’t have the investor mind set I’m looking for.

I know I haven’t fully narrowed down my investing plan but any thoughts or guidance would help me create an investing plan and would also be much appreciated.

Do you already own a primary residence? If not I would recommend focusing on taking advantage of DP assistance programs for first time home buyers and capitalizing on a house hack. That will be considerably lower risk than over leveraging yourself and investing out of market, which typically results in a loss on the first deal or two. Cut your living expenses down with a househack, save money aggressively for a period of time and then revisit the out of state idea once you have a cash buffer.

0 Votes

Baltimore, Maryland

Quote from @Sidney Williams:

2 Votes

Washington, DC

Quote from @Sidney Williams:

Quote from @Ned Carey:

@Sidney Williams welcome to BP. Lots of people here from the DMV area to help. I checked your profile and I see you are already connected to @Russell Brazil. I you haven't done so you may want to "Follow" him. He is one of the best agent I know of in the area.

One thing that can help getting out of "analysis paralysis" is to go out and look at LOTS of deals, all kinds of deals. Look at listings, open houses, auctions, wholesaler deals, FSBO and other investors deals you can get to them to show you. The more deals you look at and evaluate the better youy start to learn the market. You especially need to learn what the expectations of buyers, renters and other investors is. Good luck

Thank you for the warm welcome! I made sure to follow Mr. Brazil. I really appreciate the advice and I will start going out to see the properties.

In terms of reaching out to wholesalers in the area, how would you recommend I find/contact them?

Facebook groups are full of them! DMV Dealmakers, Maryland Investor Group, etc

2 Votes

Washington, DC

Quote from @Russell Brazil:

Quote from @Sidney Williams:

BRRRR is a great strategy as you get to recycle your capital over and over and over again.

The dirty little secret though to BRRRRR is that it takes a lot or capital. $600k purchaee price plus $200k rehab ia going to be needed on a pretty typical one in say Petworth, Shaw, Columbia Heights. Even in say Riggs Park youll be looking at $425k purchase plus $150k rehab.

So it is certainly a hard entry point into investing. Straight buy and hold or house hacking is a much easier entry point to start.

You could consider hard money if you dont have all that capital up front, but beware of holding costs

2 Votes

Washington, DC

I find the one and two bedroom MTRs do the best but 3 bedrooms work too, especially if youre not adverse to running it as a "rent by the room" which is more management time and effort but can yield more cash flow

0 Votes

Quote from @Shelby London:

Hello, my name is Shelby and I am new to real estate. I am in the process of becoming an agent and would love to get involved in the industry. I have been looking into investing as well. I currently have a part time job as a nurse so I have time to help with whatever is needed. I was thinking about trying to get into the commercial real estate space but not sure since I have not been exposed to that as much. Any advice to a soon to be agent and investor?

If you want to get into the commercial space and you're truly starting from zero, I would recommend getting a job with a commercial developer or broker to learn the ropes. Build your client list from there and then your background will also help you when raising capital

0 Votes

Los Angeles County, California

All Forum Posts by: Sara Frank

Sara Frank has started 15 posts and replied 248 times.

Post: Half way thought the inspection period...and the contractor flaked:(

Post: No Cashflow Northern VA

Post: No Cashflow Northern VA

Post: New Investor in the DMV

Post: Where to start/ what to do.

Post: New Investor in the DMV

Post: New Investor in the DMV

Post: New Investor in the DMV

Post: Is a 3 bedroom single family house good for MTR to traveling nurses?

Post: New to Real Estate. Looking for mentor/internship