All Forum Posts by: Bobby Akines

@Marcus Reeves Good luck getting started! I'm in the same boat. I would suggest committing yourself to a few hours of research and underwriting every day. Tour the market, find good agents, and as Robb said, begin networking with people. 

@Robb Almy I've been looking at Fred for value add buy and hold. Thanks for the tip on the local REIA.

@Russell Brazil haha good to know. What do you look for on gross margin? 

@Russell Brazil it's $175k ($400k estimated ARV -$225k PP).

Hey BP, I have a potential flip opportunity in SE DC. Anyone have a good contractor or trades recommendations? Thanks!

Thanks, @Jon K.! Do you have a plumber, tile and carpenter you recommend? I’m working in Baltimore City but assume the trades that do work in the county would also come into the city.

@Russell Brazil not every property is subject to rent control. Only buildings built before 1975 and 5 or more units. So you need to confirm the age of the building. In addition there are ways, even if rent controlled, to mark the rents to market. If you substantially renovate a unit you can claim a hardship and use the cost of renovations to raise rents. There is lots of information about this on DCHD’s website.  many developers who play in larger rent controlled buildings use this strategy. 

@Jon K. what level of finish are you installing? Ie tile tub surround, $/sf floor, high end vanity with stone top or builder grade with cultured marble? Do you typically have to put a sewage ejector pump in as well?

@Ned Carey thanks! Fair point on VTV got the same impression. Look forward to meeting you some day as I continue to build my business!

@Ned Carey Thanks for the axiom! What data sources do you use to track down vacant owners? Do you use tax records to find that person's current mailing address, and then send them letters? Do you try to source their phone # and call direct? 

Any experience with VTV or tax lien auction?

@Tim Jacob Thanks for the market insights! I'm surprised that a reno in Charles Village starts at $300k. I have an investor friend who is wrapping up a 5-unit SFH conversion in Station North that he got for $135k. Also I had reached out to Ben Frederick a while back and it seemed like they had cash flowing properties in CV for around that PP. What is a reasonable ARV in CV for a 3-4 unit with a decent reno? If you have basic numbers on those would love to see. I could flex up my equity investment to as high as $200k, but ideally I would spread that amount into at least two deals, so would aim to max out at $100k in any single deal, and not sure I could get the value spread to get that entire $100k back.

Why do you say that the higher end neighborhoods are the best for BRRRR? Is that because there is more valued in renovated properties, i.e. more demand? That makes sense logically, but hadn't put the dots together that you will get greater value add spreads in more in-demand neighborhoods. Thanks