All Forum Posts by: Brad Gilboe

What is that product/device that BP endorses for when you have multiple units on one water line and you want to effectively sub-meter it and bill it back to the tenants?  Thanks in advance.

I am in the process of purchasing two 4 unit buildings in Phoenix AZ. Each of these are below market rents, but also in a part of town that is slowly trending in the right direction and is currently a C+ neighborhood. This would be my first official multi unit BRRRR and im looking for clarity on how to determine the ARV. My property manager is guiding me to a rent that will be higher than the average for the neighborhood, but will be a newly renovated building. The lender I have been speaking to is unclear what the criteria are to determine the ARV, and therefore allow me to forecast what 70% cash out looks like.

Is the ARV on 4 unit residential multi based on the NOI divided into the cap rate? or is based on price per door? or what other things should i consider?

Additionally, anyone have a recommendation for a great lender in Arizona?  i have a separate 10 unit currently being renovated that I will refi as well.  I'm not sure if it's possible to refinance all 3 properties into one portfolio loan or not, or if that's even a good idea.  Any guidance is appreciated.  THANKS

Hey All,  I am a realtor and have a client who is looking to improve his property prior to selling.  He has no income because he is taking a new job out of state after he sells in 4-6 months. He currently has a 1st and 2nd mortgage that are approx 60% of his home value as it is now.  My client is looking to borrow $30-50,000 to do improvements on the home to sell immediately.  I"m told because of his lack of income he can't qualify for another loan from his band.

Im curious if a hard money lender would be the correct option to secure $30-50,000 for improvements to sell.  I believe this would be a 3rd mortgage but Ive never structured a deal like this.  Has anyone had any experience structuring a loan in this way?  Are there other options I should be considering?  Thanks in advance for the help.    

I have a duplex with a single water meter.  I remember an ad for a digital tech product that would track the water on individual lines to be able to accurately bill back to tenants.  Does anyone know what im referring to?

If not, how do you typically handle diff levels of usage of water for two units?  I have an upstairs unit with 2 adults and a child, and a lower unit with one adult.  Any help on best practices for structuring this is appreciated.  Thanks in advance.

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*This link comes directly from our calculators, based on information input by the member who posted.

Hey Gang,

I have an option to buy this home in Michigan, my home state, from my Uncle. It's a standard cosmetic fixer because it has great windows, brick home, brand new roof and new water heater. Upgrades include refinishing hardwood, new kitchens/bathrooms and finishing the 1000 sq ft basement. Without realtors I could buy for $130,000 and a GC i trust said $40,000 renovation budget. ARV is $210-215,000 with finished basement.

Following the BRRR, I will be operating at a minor loss if i pull out all the money on the REFI (approx $175,000). Using a conservative rental analysis, $1,400/mo is the rental income. It could be a little higher, but im barely breaking even at that rent. I do have professional property mgmt that could manage, but my other 3 units I have been having family manage.

If the area is appreciating, should i pull out less money so it cash flows slightly?  Or should i just flip it for a potential $30,000 profit?  I apologize if this is a pedestrian post, but im wondering if im analyzing this properly, should just wait to buy a better deal OR if i'm hesitant  and scared just being an out of state investor.

For what it's worth, I am an active realtor in Los Angeles and i have a SFR and Duplex in Michigan that are performing very well. This would be my first BRRR or out of state flip, so part of me is happy to just get my feet wet and make a little money. Also if i should phrase future posts differently, feel free to let me know.

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*This link comes directly from our calculators, based on information input by the member who posted.

Hey gang, first time long time on BP.  I am finally taking the advice of podcast guests and Brandon and analyzing more deals.  This is a duplex in my home state of Michigan, although i live in Los Angeles.  I am hoping to purchase for $185,000 and renovations would conservatively be $30,000 but that's aiming high since i'll be managing out of state.  Rental income at $1050 per unit is average, but it seems that $1100-1200 is possible if can give that wow factor with updated kitchen, bathroom and cleaning up the basement.  The ARV is difficult to determine since only one other duplex sold recently in the last 12 months.  Any help in how to determine that would be helpful.

The property mgmt fee i wrote in at 8%, but my Dad would help manage. He currently manages my other SFR rental. I wasn't sure what to write for Cap % and future expenses. One unit is rented at $900/mo but that's below market and they will be moving out at the end of June supposedly.

I would love some feedback on how this looks at first glance, what costs I may be over looking and then if this is something I should jump on OR if this is just a nice exercise for when a better deal comes along.  I want to be respectful of not asking too many novice questions, but i also don't want to be paralyzed in my analysis.  All criticism is welcome on the property and/or this post.

Thanks

.brad.