All Forum Posts by: Cassi Justiz

Hey Brandon! 

Feel free to send me a message! I'd be happy to meet up for coffee sometime. 
There are also quite a few investor meetups that would be great to attend. 

Look into the Millionaire Possibilities REIA and Renascent Mastermind. Both offer events that would be great for connecting with local investors. MP REIA meets monthly plus has a few special events here and there and Renascent usually has 2-3 events per month.

https://www.renascentmastermind.com/new-events

https://www.wp.millionairepossibilities.com/

 @Jimmy Ogle also hosts a monthly happy hour, so follow his posts and watch for info on that. 

Title insurance is relatively inexpensive and can definitely protect you from unknown liens or weird easements/lot lines, etc. Closing costs for a cash purchase around this amount should be pretty affordable. I would expect somewhere in the $1000-$1500 ballpark. 

Something else worth noting is that Del City requires an occupancy inspection anytime utilities are switched over. (Tenants are required to have utilities in their names). With a tenant in place, you may not have to do this right now but it's definitely worth asking your home inspector about the big inspection items they usually see come up. Recently I've seen them calling out adding/replacing driveways, electrical wiring and making siding repairs. So they can be some pretty big ticket items that can add up quickly. 

Hey there!

If you are still looking for an inspector, I really like John May with Sooner Home Inspections. When he's booked out, Gerardo with Supreme Home Inspections is a solid back up option as well. 

Hey James! 

You've landed in a good spot to get in the out of state investment space. BRRR deals have definitely gotten tight in the OKC area lately. Right now, most of the people that I know doing BRRR deals are marketing for their own properties. Obviously, it's a little tough to drive for dollars from out of state, but you can do other types of marketing directly to owners. That's definitely the route I'd try to take. Anything that touches the MLS is going into bidding wars right now and most stuff is selling at/around retail value once you factor in reasonable repair costs. With our latest wholesaler regulations, many wholesalers have stopped publicly marketing their deals. In order to get the wholesale properties, you'll need to get to know a few wholesalers. There are a few on here that you should be able to find.
You can definitely still find BRRR opportunities, it just takes a bit more effort than it did in the past. 

Good luck with your investing adventures!

Hey Blake! 

Which neighborhoods are these homes in? There are a few neighborhoods in the Urban Core that fall into the Historic Preservation districts that do not allow STRs.  

Not only do you need to consider a license, the city can fine you up to $500 per day for operating a STR without a license. I haven't heard of them enforcing it yet, but with the number of STRs that are popping up I wouldn't be surprised if they start.

Here is the link to the home sharing page on the OKC city site. They also link to the Board of Adjustment application. 

https://www.okc.gov/department...

This is most likely a lender issue. I've worked with several lenders that processed multiple conventional loans at the same time. Having multiple deals going on shouldn't be an issue for most lenders as long as your DTI and other qualifying factors allow for it. The only reason I can see it being an issue would be if you were tight on the qualifying criteria or needed to factor in future rental income. A lot of conventional lenders/underwriters are not comfortable with rental property, so you might interview a few other lenders if you plan to really scale up your processes.

@Benjamin Hazlett, 

There are a few different ways they can approach appraisal values, but it's all up to the appraiser on whether they feel it's relevant or not. The most popular ways would be an income based approach and give it value based on potential rents or the sales comp based approach. If there are not enough sales comps, then they might be able to value it based on a formula of rental rates to sales value. 

We've had a hard time getting appraisers to pick up multifamily properties in OKC, so getting further out makes it more challenging. You'll definitely be paying a premium to get an appraiser to pick it up, but it's worth it if that's the difference between financing or not. 
If you are already working with a lender, you might try to find out how they are compensating the appraisers. Many times an appraisal management company is involved and they take a large cut of the appraisal fee. A lot of our local appraisers will not work with AMCs because they end up doing the same work but getting paid less. 

If you don't have a lender on board, find a small local bank in the town you are purchasing in. Chances are, they will have existing relationships with appraisers in the area that they regularly work with. 

Good luck!

Thanks for sharing your experience!  I can see how an investor's idea of wanting to DIY a project would not in alignment with your expectations as a PML. I am definitely interested to see how you decide to do draws going forward. I know some banks/PMLs give all of the money up front and others have a very set process on what they do. I've dealt with enough contractor hiccups that I would definitely want a very strategic process so that everyone knows when they are getting paid and what the expectations are. 

How did you decide on your loan amount? Was it a percentage of ARV, purchase amount + rehab costs, did the STR projections have anything to do with it, etc?

Congratulations! Original mile? We bought our first original mile house last year. It's been solid so far!
We ended up doing similar updates to ours. We did vinyl plank over the old laminate flooring in the kitchen and bath. It was a temporary solution to make it look nicer until we completely remodel the bathroom and kitchen in a few years. 
We've got other ones scattered throughout MWC but I'd love to pick up a few more in that area! 

@Artie Butcher, 

Congratulations on your first live-in flip! That's an awesome place to start!

I'm based out of OKC. Our market has seen a ton of growth lately, and with that has come with a significant increase in pricing and decrease in returns. BRRRR deals are still possible, but they are very few and far between for anyone that isn't doing their own direct to seller marketing. In order to acquire a BRRRR deal here, you'll need to get comfortable with working directly with sellers. Occasionally a wholesaler will send out something with those kinds of margins, but it's exceedingly rare in our current climate.

I'd narrow down your criteria of what you are looking for in a city and then start looking for connections in those areas. Do you want a city with specific population growth metrics, job types, etc? Do you care about A,B,C,D class areas? Crime rates, etc? You'll also want to look into local landlord laws and any proposed changes to those laws. BRRRR strategy can be a great option, but it definitely requires a little more front end work than buying turn key or purchasing in your home market.