All Forum Posts by: Cody Neumann

@Jonathan Hinkebein

It will depend on the hard money lender. A lot of them will only find both purchase price and the rehab if they add up to at or below 65% of the ARV.

If you go that route a lot of them will also require you to put around 10-20% down of total cost.

Most of these loans are also only 6-12 months before you have to sell or refinance.

@Justin Seaverns

If short term rentals are hot in your area and you can make a great return on that I would do that. Keep in mind some months might be slower than others.

It depends what your goals are with it and if it’s worth it for you to take some time to rent it out rather than just get the cash right away.

If you need the cash right now for something than it would be best to sell it.

@Sergio Moratto

I like to stay out of the bigger cities personally due to the high cost and low returns. You can find some good deals from wholesalers but they are few and far between. Smaller markets are great for getting started with some brrrr deals.

@Ryan Duffy

As long as your DTI won't be too high I would do a lower down payment on your personal residence so you have funds to invest which can potentially offset the cost of your house if you find the right rental.

@Miguel Horta

If you don’t feel the appraisal is correct you could try having your agent renegotiate with the appraiser and tell them why they think it’s worth 75k

@Thomas Woodrow

My biggest suggestion would be to ask if they own rental properties themselves and possibly if they know of BiggerPockets. Pay attention to the way they talk about it. If they don’t really mention numbers such as factoring in repairs, capex and vacancy then I would move on.

@Geri May

I typically use laminate in my market. I would suggest you take a look at other rental units in your area and compare what a kitchen with laminate rents for and what one with granite rents for.

@James Brackin

Congratulations on getting in the game early! Sounds like you’re killing it!

@Caleb Crockett

Raise slow in increments of about $50. Will keep them. Another route would be to repair any problems the tenants have been asking for to get on there good side then raise it a bit more.

@Peter Jindra

If you are looking at a property right now that hardly even cash flows with current rents and you are expecting the prices to drop (which can vary for every market) I would say move on and find another property.

Try setting specific criteria you look for in purchasing a house such as cash flow amount and cash on cash return.