All Forum Posts by: Jeremy Lahners

I've been doing some reading and it appears North Carolina, my home state, has laws in place for requiring a GC license once an estimated rehab goes over $30k. A number of the rehabs we've looked at here in Charlotte cross that $30k watermark. So it made me wonder - How many DIY folks have their GC License? Is that common for those wanting to do some or all of the work themselves?

This sounds in line with something I've been thinking of developing as a side project.  Hoping someone has an existing solution though, especially the "call the psychiatrist" feature!

@Natalie Kolodij but if you have a second person, don't you almost immediately want to create an LLC to allow for proper tax filing and income distribution? I would assume it's harder to split profit, manage expenses, etc when two or more people are involved.

For simple math on the BRRR, you'd be looking at maybe $850-900 / month for your mortgage and escrow, plus management fees, vacancy, maintenance and capex hold-backs, which would add another $350. So your monthly costs might be close to $1200, thus your BRRR would not be making a profit. You'd initially get a $12.5k bump for the refinance of the BRRR (75% of ARV) but wouldn't make any profit from that point forward unless you raised the rent accordingly.

The answer probably depends on your ultimate goals but with this not really being a cash-positive investment, I'd consider selling it, again unless you can raise the rent.  Best guidance I've heard so far is you really want each unit of a multi-unit to be making $100-150 of profit.  Otherwise, dump it. 

Mainly MLS. I calculate initial ARV by looking at Zillow and other sources but also have an agent give me their ARV assessment.