All Forum Posts by: Jaron Walling

@V.G Jason Are you finding it difficult to estimate ARV right now?

Prices are up in our market but the discrepancy between prices, similar specs, and actively listed is weird. It's $15-30k in our target areas. There's either a lot of clueless sellers or my sold comps are too narrow. There's a lot DOM also but I expect during the winter. 

As rates have gone up we tightened my sold comps. It's making it hard to find anything worth chasing. Driving by a property today to see if makes sense to walk. It's down the street from our rental which we BRRRR'd two years ago. Asking $89k, probably a $40-50k rehab.

We had our first child so we have been on the sidelines for a hot minute. Haven't bought anything since April, 2023. 

Starting looking for opportunities last Fall and so far it's been terrible. We have had success buying in the winter, but this time it feels different. Our buy [box] is small but dang it's tough out there. Can't find any low hanging fruit. Haven't found a deal that works for BRRRR. Off market FB leads, MLS, wholesaler doesn't matter. What were doing isn't working.

We're going to start attending local meet-ups again and stay active. We need to build more relationships. 

 Excellent! 

Have you tackled any rehabs yet? What does your buy [box] look like? Walked any houses and ran the numbers? What type of funding are you using? Can you DIY projects and cost cuts? 

You should jump into the weeds as long as you have a few exit strategies, know the market, have a stable 9-5, and emergency savings.

@Joshua Nichols I'd take @Travis Timmons advise to heart and think about the challenges associated with flipping RE. You're reading a 10 chapter book and tryin to skip the first 4. It's not as easy as the social media gurus preach. 

If you don't own a primary residence I'd start there.

Don't pile on risk at 21 y/o. I'd level up with a BRRRR, live-in flip, or house-hack before jumping into a challenging renovation. Those are opportunities for experienced investor but you're not experienced. Creative financing to buy deals is another dangerous approach. Avoid it until you get the investor ball rolling.

You need boots on the ground (you?) to determine neighborhood classes. A lot of the popular markets have maps created showing class but I'd take caution using them. Some of them are outdated and don't reflect current trends. A handful of quality flips, BRRRR's, or new construction can transform a neighborhood quickly. No map is going to keep up.

It's not a black and white thing. There's always grey zones of A/B, B/C, or D/war zone like neighborhoods. Generally speaking when you find more owner occupied properties and less rentals you're in C+/B class. A class is 90-100% owner occupied properties. Price to rent ratio rarely works in A class areas unless you go STR.

If it's a true B class expect to pay for it. Small multi-family is hot right now due to house-hacking (low barrier of entry), and future cash-flow. 

You either have verified income and meet the other requirements, or don't. Red flag. 

If you're this far along I'd call the employer anyways. 

Make sure it's legit by asking a question a buddy couldn't answer quickly. Call a different number you found online associated with the same company, etc. If it's not a real job... next.

@David Lewis All aboard! It's a long train ride. Better buckle up.  

@Stacie Telles Assuming you took out a conventional mortgage on the property you won't be able to refinance for at least 12 months. At least now your tax basis is $220k ;-)  

What was the extent of the repairs? Generally speaking repairs don't add much value. If you remodeled, added a room, replaced a roof, painted, boosted the curb appeal, etc. that's a different story. If it costs you thousands to refinance it needs to be worth it. 

I wouldn't touch your current loan unless rates drop 1-2%. The odds of that happening in 2025 are pretty slim. Play the long game and hold onto that equity. 

@Nicholas A. Everyone does that a little when starting out but statically speaking spreading effort into multiple markets is not the best use of your time. Time is a valuable resource and "spending" it everywhere at once isn't worth the effort. You're better off focusing on specific markets, specific neighborhoods, analyzing numbers, and building an ideal buy [box]. Build connections with local professionals, talk to them in person, and value there time over yours. That's how you gain the information you need to AVOID MISTAKES. 

Look for a proven market and make it your backyard. 

For my family investing OOS is a big long term goal (most likely south with mountains), but it's never been the main plan. 

@Ethan A. We love our pets but at the end of the day pets are a luxury. The majority of landlords don't allow pets in there properties. The risk of property damage or a lawsuit from a dog bite is too high. 

Did you collect a pet deposit?

Did you find any prior knowledge (tenant screening) of pets moving in?

When was your last inspection?

If you had no knowledge and they broke the lease I'd issue a notice of non renewal, but give them the option to remove the cats. If they started with two cats, and you were fine with it, maybe allow it. You can compromise without loosing good paying tenants if they pay on time. 

Follow up with an inspection with the timeframe stated in the notice. Get all of the notices in writing and keep all text message/voicemails for your records. Follow your state regulations on notices but do everything you can to avoid an eviction. Nobody wins in that situation. 

Best of luck.