All Forum Posts by: Jake Wing
Jake Wing has started 0 posts and replied 6 times.
Post: brrrr questions in Canada
- Rental Property Investor
- Truro, NS
- Posts 6
- Votes 6
Originally posted by @Roy N.:
Ryan:
When we first created a set of spreadsheets and then wrote a small application to perform some scenario simulations, the BP calculators did not yet exist. I have a software development background and had worked on simulators (for traffic analysis) many years ago, so it seemed like a natural way to become more familiar with the interrelationship of various real estate metrics and produce a usable tool.
Hi Roy,
I'm curious how complex your modelling goes when evaluating the sensitivity of some of your input variables? Are acquisitions costs (purchase + renos) and projected rents the main variables your digging into for your scenarios?
Thanks
Post: MultiFamily Property zoned as single family
- Rental Property Investor
- Truro, NS
- Posts 6
- Votes 6
Originally posted by @Mariana Hernandez:
So after fighting back and forth with banks and lenders we resolved the issue with a local bank that didn't care how it was zoned. They approved us for a conventional loan.
Did you have any problems obtaining insurance for this property?
Post: Newbie from Truro Nova Scotia
- Rental Property Investor
- Truro, NS
- Posts 6
- Votes 6
Welcome Robert,
I'm also from Truro...hope to see you at a meetup sometime in the future.
Jake
Post: Purchase Plus Improvements Mortgage
- Rental Property Investor
- Truro, NS
- Posts 6
- Votes 6
As a follow up, I think I got some clarity on my question. The second appraisal prior to renovations is to ensure that the ARV following renovations warrants the money being asked for to do the renovations.
So if you purchase for $110,0000 and ask for $40,000 to do renovations. If the appraised ARV is only $120,000, it's not going to make much sense for the bank to lend you that much for the renos.
Post: Purchase Plus Improvements Mortgage
- Rental Property Investor
- Truro, NS
- Posts 6
- Votes 6
@Jacob Perez old thread but hoping to ask a question on using the BRRRR strategy with this mortgage. I've heard it explained a few ways so I'm hoping for some clarity.
The way I thought it works was how you explained. Basically mortgage is Purchase Price + contractor estimate of reno cost based on scope of work. You could "BRRRR" this by doing the renos much under the estimated cost. i.e. $110,000 purchase price, $40,000 reno estimate, and complete the work indicated with $10,000. You'd get the $30,000 difference back.
The other way I recently heard it explained was that you have an appraisal done up front that indicates what the ARV will be once the scope of renovations are complete. So let's say you buy for $110,000 and the ARV as determined by the appraiser is $150,0000. You'd complete the renovations (out of pocket), but then refinance at the end of the 120 day period at a 80% LTV on $150,000 (=120k). So again you'd be able to pull out 150k-120k = 30k.
Do I seem to be sort of on the right track with how this works?
Thanks
Post: Possible Meetup in HRM/Nova Scotia
- Rental Property Investor
- Truro, NS
- Posts 6
- Votes 6
Another Truro based member here. Currently learning everything I can about real estate investing and would be very interested in meeting up with likeminded Nova Scotians!