All Forum Posts by: Benjamin Seibert

@Rudy Manna I know there are a few pretty large threads on BP that cover this one. I would recommend checking those out. However, shooting from the hip, a couple general areas I've identified are Hunstville, AL and Cleveland, OH.

That's a tough situation @Katrina Cabral. If he has a key to the place you may want to change the locks and just give the tenants a different key. Unfortunately, it sounds like you're getting to a stalemate. You may have to eat some of the cost just to get this to go away (not that you're in the wrong - you're justified). To get past it and move forward with your REI goals I would try to split the cost with them on the blinds. To keep him from coming back to the property (since it sounds like that may be the best option) I would install the blinds yourself or have someone you know help you (it's pretty simple to install them - just time consuming).

I know this may not be the best situation for you but many times it's best to just leave a bad situation in the dust (like cash for keys). As my grandfather would say - If you sir the poop pot, it always just smells worse.

@Tucker Fenske congrats on the successful BRRR. I'm currently doing the same process on another property right now. It is a beautiful thing when the refi appraisal comes in and it works out. Great job!

Hey @David Zeek it definitely is a personal question you both should keep discussing to get on the same page on what the benefits/risks are while you will be away and how you will handle them. The BRRR method is a great way to get solid equity in a property and keep it as a cash flowing asset; however, most true BRRRs will require substantial rehab. You could also purchase a property that is undervalued and needs light rehab and then you'd almost be buying a turnkey but have some instant equity into the property.
It all comes down to your REI goals and your plan over the next year or so. Goodluck on your REI journey!

@Nate Truxel just from hearing the numbers off the bat it sounds like you'd need to get the property cheaper and potentially raise the tenants rents. Don't forget to factor in taxes, potential vacancy, maintenance, cap ex and PM services. I know it'd never the best to raise rates on existing long-term tenants but it doesnt sound like this property cash flows adequately without it. Plug it in the BP's property calculator and check it out too.

@Mark Kuta you definitely want enough to cover the reconstruction of the property. It depends on the price of it. Just make sure it is at least over the purchase amount you have in it because rebuilding is always more with today's labor and material rates. In terms of liability - I'd recommend at least a million. I personally have $2 million but the maximum for each claim is $1 million. 

@Lewis Christman Hagerstown, MD is a good market to invest in with solid rents and low starting price point. A couple things to watch though:

-The market is super dry right now. Since Hagerstown is a small market if there is any there are only so many properties so if a dry spell occurs, then not many deals are being done.

-It is good to know this area well. Downtown is attractive with solid prices but you need to watch out for certain streets. Hagerstown does have D/F properties (just like almost any other market). They're harder to spot thought because Hagerstown has a large C/D class grouping of properties. It's good to know street by street which ones should be avoided.

To answer the last question - MD is about in the middle with investor friendliness. Hagerstown is about the same - some policies will nickel and dime you or create a lot of headache (I would put it slightly more on the tenant friendly than investor friendly). However, if you keep a solid property and understand the policies then it can be a workable environment.

@Patrick McGrath congrats on the deal! It looks like it worked out great. 

@Andrew Menkes you may have some luck with some small local banks that are willing to lend more freely. Some of the larger banks have really tightened their guidelines. 

@Alex Bekeza is a great source for refinancing. I've used him before and is great to work with and awesome at keeping you informed and up to date with any changes. I'd recommend reaching out to him.

@Cody Davis it's hard to put a true financial figure on upgrading the electrical service. Unfortunately, items like electrical and plumbing don't bring a high ROI on a property like items such as kitchens and bathrooms do. Although, it usually is a critical item to sell a house at all and can keep people from purchasing if the plumbing is old or electric is insufficient or knob and tube.