All Forum Posts by: Jake Baker

@Lucas Schlund

I recommend using a hard money lender, even for you first BRRRR. Keep you cash on the sidelines in case unexpected expenses occur. i.e rehab goes over budget, appraisal comes in low...

@Griffin Malcolm

Best thing to do is reward him with more work. 

In the future you can creat incentives for meeting timelines. Perhaps a 5% bonus for meeting the target list date. I like to specify these things in the beginning. 

@Bob S.

Is this a flip or brrrr?

I think carpet in bedrooms is fine. Tenants tend to take care of the carpet in their bedrooms. It's the common areas where you should avoid. 

Depends on the neighborhood as well. In an A neighborhood, you may want to have LVP throughout. 

@Bob S.

I always paint the inside usually just the same color. acrylic cabinet paint

@Marisa Voelkel

I think having properties in their own LLC is not necessary for the reasons that @Andrew Syrios and @Benjamin Aaker mentioned.

It depends on your risk tolerance and ability to keep organized. Really it comes down to having good insurance. I keep around 5 rentals per LLC and I am in Jacksonville FL where my homes are worth around $300k.

I believe that most CPAs will tell you to create a new LLC for every property because that means more tax returns for them :) Having to go to the bank to open up new business accounts for every rental is ridiculous.

@Kenneth Jenkins good point. It does take extra time but it gives me peace of mind to have multiple estimates. Once you do one, most lenders require the same documents to estimate. 

Well said @Jeff Roth.

If you are investing OOS I highly recommend a property manager. It is worth the monthly expense for all the reasons that Jeff listed. 

Here are my thoughts on Cash Flow: While extra cash every month is great, I look at Cash Flow as a hedge. Cash flow covers my expenses and then some. Market Appreciation is where you will make the most money over a 10-year period but is the least predictable. 

@Lily Ochoa

Do you have enough equity to do a cash-out refinance?

@Brett Riemensnider

I agree with @Ko Kashiwagi about getting several quotes. 

When you do find a contractor be sure to do the following: 

Have a clear SOW

Have a written Contract in place

Ask for proof of Insurance/Licenses

Agree on strict timelines so you don't incur more holding costs

It is easy to underestimate the timeline - whatever a contractor says, add 4 weeks.

@Kenneth Jenkins

Good points that you make here. I typically get quotes from multiple lenders. One of them is a broker.