All Forum Posts by: Tyler Weaver

@Jeremy Lee That is great. What are your plans going forward? What did the unit rent for?

@Omer Zulfiqar in addition to local/regional banks and credit unions. Which you should definitely start talking to a few in your area.. usbank does commercial lending in that dollar amount and has pretty good terms.

I think the best bet is for them to reduce the price. Getting a property of this value to work on a subject to lease option sounds outside of the bread and butter of that strategy.

@Ross Dolbec it may make more sense to get w HELOC and use the available funds for rehabs, down payments, or as part of your capital plan for reserves etc. then you are only paying when you have funds withdrawn. If it for your reserves, you may not actually have to use it but can operate knowing it is there.

In my market there are a few banks that go up to 100% equity on a heloc.

A 300k offer from the 207k purchase price as is?  If that is a viable offer, I would take that 100%. Get some deals under your belt, move on continue finding more deals.  That is an incredible return for simply wholesaling the deal.  

That will set you up nicely to continue marketing and be able to buy another deal or two.  You could easily roll it into a couple more rentals as opposed to the original one property.

Is there a market for the $320k property with a modest rehab budget?  Some areas really put a premium on everything being done and move in ready. 

Doing all the labor yourself will take 5-10x longer than you initially plan.  Especially if you are doing this after work.  Some projects scale pretty well if your family is looking to pitch in.  Demo, Laying flooring, and painting are great for having several family members pitch in on the work.  

If you do the BRRRR approach and refinance at 350k, your mortgage will be close to $1,800 a month, if taxes are close to $750 a month, your personal housing costs may be higher than other options. Where it may be cheaper to sell the property and live elsewhere.

Congratulations on your first flip!  Getting that first one under your belt is a HUGE step.

Cash invested, $6,000.. What was the construction budget though? 

The only reason why I use an agent is for access to the MLS. Either for selling and getting the exposure, or for buying.

If we already have a connection with a seller or buyer, and do not need the additional marketing, we will typically negotiate and sell or buy directly from the other party.  

If the variable interest rate is good, and the cap on what it can move up to doesn't make the investment cashflow negative that is probably worth considering.  

I would use the 0% down loan, buy as big of a multifamily as they let you, probably a 4 unit.  Hopefully find something that has a little upside potential. Move into one of the units and then save some money until you buy your dream home. Or maybe rinse and repeat one more cycle first.

You can definitely buy an SFR turnkey from out of state with 20k equity.