All Forum Posts by: Eric Miller

We're finishing a BRRR that we've decided to move into for two years. We're planning on using a conventional 30 year mortgage unless there is something better that I'm missing. We're looking at a just under 7% rate, no points, with one free rate reduction within the first year (cause rates are doing down, right?!?!)

Are there any better options? Thank you!

Look in the attic if you are able to. If the vaulted area of the roof has a ridge beam (large) and not a ridge board (small) see if that beam has a post going down to the center of the wall you are wanting to remove. Definitely load bearing then.

Use a stud finder on the kitchen ceiling - if the ceiling joists run perpendicular to the wall, definitely load bearing.

If neither of these are true, you still need to consult an engineer or your contractor to find out for sure that it isn't load bearing.

 

Ask someone to run the cold water in the bathroom first. If there is no odor then run the hot water. If the odor is from the cold water then you might have an issue with the water supply. If it is the hot water only then focus on the hot water heater or plumbing - it may need to be disinfected. 

How many square feet is it?

See if your state allows a first right of refusal to be written into your agreement with your friends so if one of you wants to sell first, the others have the right to buy them out. You may be able to specify a long timeline to give the remaining owners time to get their finances together.

Thank for the very thorough answer. I would definitely work with a realtor on this one.

If a bank foreclosure sale doesn't warranty the title can the offer be contingent on the title company being able to do so? 

What can cause a property to be bank owned without a clear title?

Great perspective. How does this play out when getting an appraisal for refinance? Do appraisers look for specific physical work done on the property or will they take increased rents, etc. into consideration?

Have everything go through a title company just like a regular transaction. Try and find a title company that has a payment processing service for your monthly payments so you have records of everything and when you eventually pay it off, either through payments or a balloon, it will automatically record in your name.

Congratulations on your first kiddo!

I've been BRRRRing a house for the last year while having a new baby at home and have a few thoughts. I definitely wouldn't consider living in the property, having a peaceful and quiet place to be will be so valuable. If you start with a place that needs simple cosmetic updates (which I would recommend since you both have W-2 jobs and have that kiddo on the way) and can do those before you move in that might work.

If your current home would cash flow and could become a good medium or long-term rental, try and hold on to it. If your goal is having multiple long-term holds, you automatically already have one!

If you have enough equity, consider a HELOC on your home, just know there is risk involved and there will be some stress worrying about getting it paid off.

If you won't be living in the house you purchase, you'll likely have to do a combination of financing, e.g., HELOC + hard money.

Read through the creative financing threads, there are some pretty interesting ways to structure deals.

I live in a college town and it's great for renting out a property, but the buy-in is pretty painful and makes it hard to cash flow. The college town you're looking at may be different.

Last thought - estimate your rehab costs and then double them, estimate your timeline and double that too. Plan for those figures and you'll be happy if it's cheaper and faster and not in trouble if it isn't.

Good luck on the journey!