All Forum Posts by: Ian Kisbert

I am planning to use private money (close friends and family) to help fund the rehab portion and some of the purchase of a BRRRR. To transfer funds, is it as easy as signing an agreement with them, then they wire funds to my bank account? Or is it best to set up an account with escrow or have them transfer into the bank account set up for the property?

I have been talking with a realtor about finding my first investment property out of state, however as I have been looking at zillow/realtor, I found a deal that I think might work.  Would it be best to send this to my agent to get her take on it?  Again, this is my first deal, and an out of state one, so I am figuring getting her opinion from a buyer's agent point of view may be beneficial and could also help me negotiate the price down a bit. 

When running numbers on a potential property, do you typically budget for turnover costs in addition to capex reserves? I’m guessing if any turnover costs are incurred, the security deposit from that tenant would pay for it first, but do people usually still budget for unit turn over as well as capex items like roof, water heater, etc?

I’ve been talking with several property management companies to manage a property out of state and think I have identified one that I like, has great reviews and one I have an overall good feeling about. The only issue that I see is their policy that states that they approve and sign a new lease on my behalf without my approval. Is this normal for a property manager to sign a tenant who meets the requirements without ownership approval? It also states they can negotiate all extensions and renewals. Is this normal as well? Just curious how much involvement is normal when using a property manager

@Sam Harrell appreciate the recommendation! Anyone in particular that I should reach out to at Brun? I'm hoping to use the BRRRR strategy, and being that I am out of state, I'm thinking using a GC might be the best route as I don't know any subs so might be difficult to oversee all of them myself. Also not planning to do any extremely extensive rehab, looking for more cosmetic and maybe remove walls, but not a full gut. Thanks!

Does anyone have any good recommendations for property managers or contractors in the Knoxville TN market? Looking to invest here and would love to connect with anyone in the area. Currently living in California so this will be a long distance purchase.

When using friend's or family's money, how is this typically structured?  If the money will be used for a down payment and/or rehab costs, is a simple agreement used which lists terms, interest, amount, etc?  If it is used for a downpayment, will the lender need to see this so they can verify those funds in some way even though it is still only my name/credit/income on the loan?

@Andrew Postell thanks for the response. I’ve spoken with two different lenders and they both said I’d need to wait 6 months to do a cash out refi, it also seems like everywhere I look everyone is saying the same thing when it comes to the length of time before a lender will do a cash out refi based on the appraised value. I am pre approved with a lender already, but if I find someone else who is able to do the refi sooner than 6 months, will it hurt my credit to get pre-approved through them?

During a BRRRR, once you've finished your rehab and placed a tenant, do you get the property appraised right away, or do you have to wait for the refi process to begin 6-12 months later at which time the lender will initiate the appraisal? My thinking is that by appraising right away, you'd at least know what the property is worth and could possibly lock in that value when it comes time to refi?

@Jonathan R McLaughlin appreciate the response, and I like the idea of showing it as a reserve. Will it hurt my dti even if it’s fully paid off and I haven’t borrowed anything from it? As in just there if I need it?