All Forum Posts by: Jason Chen

Bob Okenwa &Kuba F. Thanks for the advise!

Hi, I am going to make an offer for a property that needs a gut rehab. I wondering since it is going to be gutted, should I still get an foundation and roof inspection done? Any other inspection I should consider? It is going to be my first gut rehab project, therefore, any advise will be very appreciated.

@Sherwin Gonzales, I am still looking and making offers, but nothing in contract yet. Mainly are 4 units and less. Please keep me posted on the one you are going to use. Thanks!

@Terry Lao

Mainly looking for MF for rental, but wouldn't rule out the possibility for BRRRR if a deal that makes sense come by. Understood that market is quite different compare to some of the other market, but I think there are still lots of potential there. What's your thought about the market?

Jason

@JD Martin & @Antoine Martel that makes sense.

@Seth Borman good remodel indeed. Did you do this while there are tenants in it?

@JD Martin

Completely agree with you on It's difficult to properly rehab a property with someone in it. That's the reason why I think if I need to do the rehab I would have to take out the current tenant. Its easier if the current tenant is paying below market rate, and if the property is vacant. My dilemma was having tenants that already paying at market rate, and that is the case for lots of properties I found right now.  

@Alex Corrion, assuming the CoCROI is 10%. Will your decision changes based on this and how?

@Antoine Martel, I was thinking along the line as @Brian Garrett, but its great to hear different opinions. I was thinking if I know based on the comps I can rehab to increase the home value I would still get the current tenant out and do the rehab. My reasoning is that without the rehab I won't be able to do the refinance to take the money out and repeat the strategy even though the rent is currently on market rate. 

Brian, you mentioned assuming this is a residential but not 5+ units. What other things should be considered for 5+ units to make strategy this still work?

Antoine Martel Thanks for the input. So it sounds like if the rent is already at market rate, then the property won’t suit for the BRRRR strategy anymore? What if making some rehab can increase the home value, should I still do it?