All Forum Posts by: Dan V.
Dan V. has started 27 posts and replied 304 times.
Post: Want to contribute on here. Where's a good place to start?
- Investor
- Norfolk, VA
- Posts 310
- Votes 187
@Colton T. Welcome to BP and congratulations on your accomplishments so far! I suggest you set up keyword alerts, for topics that you are either interested in or your field of expertise. So when members posted those words, you can share your knowledge and experiences with them. I am here mostly to learn from the experiences of others, and if I get a chance to share my own, I contribute as well.
Post: Do you always mandate all contractors to provide W9 on your BRRR?
- Investor
- Norfolk, VA
- Posts 310
- Votes 187
Originally posted by @Michael Ndjondo makadi:
Good afternoon BP investors. I'm going through my first BRRR property and I was wondering if obtaining W9 from contractors during renovation is always a good strategy. I have conducted my due diligence (license and referral checks and current project inspection) on contractors that I'm about to hire just to find out that the plumber doesn't offer W9 to customers. They provide receipts but not W9. That makes me think if this should be a deal breaker or not. They provide quality job at very competitive price. Is current savings as valuable as long term tax benefits for equal amount of saving at present time?
Ideally, you MUST require each contractor to submit W9, regardless of the amount and method of payment, as part of your onboarding process. You may tell them that your "accounts payable" department will not process the payment until they have W-9 on file. But if it's just a one-time quick job and you will not pay $600 or more, then no need to ask for it.
Post: Should I flip or hold my first multi-family property?🤔
- Investor
- Norfolk, VA
- Posts 310
- Votes 187
@Devin Miles A lot of good advice here already. As others mentioned, you need to know your financing situation (private money, HML, bank, seller financing, etc.) first and figure out a strategy that will work for your available resources. Once you have the strategy, establish your own criteria on what's considered a "good deal" for you, and then learn how to analyze deals. While you do that, grow your network. I would start with an investor-friendly realtor, then grow your connections from there. With the pandemic, I found that online forums and Facebook groups are good places to virtually network. The fact that you are on this website at that age, with determination, you will go a long way in the industry! I wish you the best!
Post: Trying for 100% back BRRRR is a bad strategy!
- Investor
- Norfolk, VA
- Posts 310
- Votes 187
I don't have BRRR property yet but starting to include it in my exit strategy. My main criteria,
1. Positive cashflow - I adjust the refi amount until the cash flow is positive
2. Cash on cash return - I adjust the refi amount until the CoC return is at least 15%
3. Debt service coverage ratio - At least 1.2, just for long term goal if I decided to use a commercial loan.
Post: What the deck is this?
- Investor
- Norfolk, VA
- Posts 310
- Votes 187
All recommendations are appreciated and taken into consideration. Once I closed on the property I will look closer into it to see what are my alternatives. Been talking to a couple of contractors already to check it out.
Post: What the deck is this?
- Investor
- Norfolk, VA
- Posts 310
- Votes 187
Now I've been thinking to check the deck boards using the screwdrivers test and if no rot, I may just have to pressure wash it and use some deck cleaner from Home Depot. Thank you all for the suggestions and comments, I appreciate you all!
Post: What the deck is this?
- Investor
- Norfolk, VA
- Posts 310
- Votes 187
Originally posted by @Mack Benson:
I'd view it through the eyes of a buyer. If a first time homeowner recieved the same inspection report that you received what would they think? Your inspection says it is not a safety hazard, will a buyers inspector come to the same conclusion? I wouldn't want to list a house knowing that there is a potential issue that could bite me when the home is under contract.
Next, what does a deck add to the value of the property? If it adds value and if the $3,800 price tag makes sense the go for it, if not then find an alternative.
The comps used does not have decks and the ARV seems to be where I want it to be so I'm thinking with deck or no deck, ARV will be the same.
Post: What the deck is this?
- Investor
- Norfolk, VA
- Posts 310
- Votes 187
Originally posted by @Account Closed:
Is the $3800 just for repairs, or would that included the cost of an entirely reconstructed deck?
Only deck boards, railings and stairs. Is it too much?
Post: What the deck is this?
- Investor
- Norfolk, VA
- Posts 310
- Votes 187
Originally posted by @Will Fraser:
Hey @Dan V. I'd pull that thing off and do some light landscaping in its place before you get a tenant in it. A deck is always higher maintenance than a no-deck so I would do your future self a favor and say "deck no."
I always thought deck is a good thing to have and adds value to a property but you got a point, so I'll take that into consideration, thank you!
Post: What the deck is this?
- Investor
- Norfolk, VA
- Posts 310
- Votes 187
Hope the title gets some attention! :) I am about to close on a property to fix and flip. The inspection report came back and labeled the deck as "poor" condition (but not included in the "safety hazard" list) and my inspector said the deck boards and railings need to be replaced, which my contractor then quoted $3800 for the job. The comps used on the appraisal do not have decks and so I'm wondering if I should just only pressure wash it or clean it, instead of repairing it. What would you recommend if you are in my situation? I appreciate any input.
