All Forum Posts by: Jack Inman

https://www.shelbycountytn.gov/123/Community-Redev...

The above link may be helpful; that's the webpage for the tax incentives in Shelby county

Congrats! What was the appraised value and how much did it end up renting for?

I had a tenant with a pet rabbit that chewed through drywall; a fairly large sized hole. If you have carpet in the house, then it's really difficult to get the dog smell out sometimes. Also, dogs scratching up trim and door is fairly common. Overall it's worth allowing pets imo; it just makes places much easier to rent out. 

I always recommend meeting the dog first though. An aggressive dog is a major pain when it comes time to do repairs or inspections.

I second the CB Properties recommendation

https://www.assessor.shelby.tn.us/content.aspx?key...

@Alex Oogjen I put more weight on equity than cash flow when using the BRRR method. Like Bob said, you want to make sure it will have a positive cash flow, but the BRRRR method is about pulling out cash rather than maximizing cash flows.

Here's how I look at it;  

Return (Cash flows) / Equity (Amount of cash in the property) = ROI

You can either focus on maximizing return (cash flows) or minimizing equity (down payment and/or rehab) to boost the performance of your investment. The BRRR method focuses on minimizing the amount of money you leave in the property and therefore boosting your ROI.

But it's really just personal preference; you can boost your ROI by focusing on cash flow, or you can boost your ROI by focusing on equity.

Hey @Emory Gray what part of town are you looking at? I’m doing a similar process on my personal house in the 38016 Zip code of Memphis

@Eric Mckune Have you looked into private lending? Or Hardmoney lending? 

Are you planning on using a bank loan to purchase a property in need of rehab and then refinance after completing the rehab? Or are you planning on paying cash upfront and then refinancing out later? 

@Nickolas St germain I'd recommend looking for half a dozen comps in the area that support a satisfactory appraisal, and then rehab your property to be on par with those properties. I could be wrong, but I don't think there's a way to accurately judge the value increase per item. 

In my market, appraisers will assign the property a score which represents their opinion of the quality of the property. Things like paint and flooring will factor into that score, but it'd be difficult to estimate the ROI of painting. Instead, I'd recommend just trying to match the quality of the good comps in the area.

@Jason Tran You can teach yourself the math aspect fairly easily. A great book for the math heavy side of real estate is Real Estate Valuation - Principles and Applications by Kenneth M Lusht.  If I were in your shoes, I'd consider getting a job working in residential construction/renovation. Having the extra cash from that job plus the knowledge of renovation costs would be helpful.