All Forum Posts by: Cassidy Burns

Depending on which part of SE DC this could potentially work. But DC is an interesting market in terms of it has many "submarkets" within it. Meaning certain area rooms are going to be more desirable/drive higher individual rents per room. I also think you should look into Silver Spring/Rockville townhomes/SFH as this would work too. Potentially even Alexandria, VA.

Good luck.

Great buy in Bethesda, congrats.

I personally would rent it out immediately, at least for the first year while trying to subdivide .  If you can get the variance for MC then after that first year you have the best option on the table.  

I do think you should be careful within the next 1-2 years with new construction development in Bethesda as it has tremendously slowed down and the numbers just aren't being reached in certain areas anymore.  

If the teardown value is $835k, you already have 60k in equity initially , you rent it out for the first year, still losing that $700/month ($5,600) but you will retain that in principal pay down from your tenants.   Your exit strategy can be just resell as is to another developer or put on open market for $835k (if it doesn't appreciate at all) , make $45-65k and move to the next project.  But I do think owning this in Bethesda undervalue has a HUGE upside.  

Good luck.

Hi BP,

Quick question: 

Would you rent to a tenant that meets all other criteria for your rental but has filed bankruptcy in the last 5 years??

Thanks.

@Peter M. interesting to hear that i'm not the only person experiencing this.  Is this a small portfolio lender as well??

Hey @Jeff Piscioniere thank you!  Yes, it's been a complicated transaction and financing has been more frustrating than normal (filling out new personal financial sheets, new applications for business loans, needs a copy of EVERY lease that I currently have even though I sent P&L as well as spreadsheets with income and expenses for every property).  I sell real estate as my day job and I even had to ask my broker to send me a Q1 1099 example for him to view.....

Has anyone else experienced this?

Good Afternoon BP!

I just recently got another property under contract that I will be performing a flip and I have run into a little issue with financing and was wondering if anyone else has encountered this:

I have used the same 2 banks for my 12 transactions in 2017/2018 10 have been rentals and 2 have been renovation/flips.  The first flip there was no issue and I don't think they even asked if it was a flip or rental and they were able to use all of my documentation that they used for the rentals.  BUT..... 

On this current transaction they are pulling tooth and nail and needing every single updated document as I told them this was a flip.  Has anyone else found it harder to get financing for flip properties over rental properties???

Best practice to just let banks assume it is a rental? 

Any advice/feedback is greatly appreciated.

Thank you!

Hi @Caleb Heimsoth, thanks for the response.  Do you have an example of a spreadsheet that you would be willing to share?

Thanks.

Hey,

@Joseph M. the unit is located in south western VA. The laws are actually very favorable to the landlord which helped significantly !

Hi BP,

I need help/would love an example/template of how you all are calculating your net worth and principal pay down on your properties on a monthly basis.  

Any suggestions/documents would be greatly appreciated!

Thanks so much.  Happy Investing. 

@Linda Weygant Thank you for the encouragement!  Yes, agreed 100%, but I guess they always say the "first is always the hardest".  So hopefully it is better from here!