All Forum Posts by: Jeff Garzik

The appraisers appraise based on the actual building, not what tax records reflect.

Does anyone have a recommendation, publicly or privately, for Hilton Head Island wholesales or other buy-and-hold sources?

We've vacationed there in the past, and would like to explore a BRRRR buy-and-hold vacation rental (preferable) or a fix-and-flip.

Thanks for any help the collective BP wisdom can provide.

Depends greatly on the inspector.

My inspector is a (wonderfully) grumpy old man, former Georgia Tech with a wealth of experience, who knows how to look for key issues like water damage or shifting foundation.  Folks hire him for apartment buildings quite often.

1- Have you run the numbers for a cash out refinance, using current comps as you describe? If you can get a HELOC, you might be able to cash out. No ongoing interest payments with cash-out; just a one time transaction bite (closing costs), plus the mortgage you were already paying.

2- In terms of risk, advice to a conservative landlord would be to build your emergency fund cash reserves first (personal + duplex), and then build some funds to buy another property.

3- I tend to agree with some of the BP podcast guests: Flipping is the easiest way to generate cash, when you're young and cash-poor. Get good comps for ARV, get multiple repair estimates/bids from GCs, and use a hard money lender who will lend 90% LTV + 100% rehab. Go slow for your first, ask BP community for help, look around for area wholesalers who specialize in finding properties in need of rehabbing. And never ever buy if the numbers don't work; leave emotion at the sports stadium :)

Once you have sufficient cash, you can get the BRRRR train rolling and cycle that cash in & out of buy-and-hold properties and refinancing.

Did you run it through the BiggerPockets calculator?   There are 5 free uses, I believe.

Based on a quick run through the calc, it seems like low cashflow even if you assume $0.00 property mgmt (counter to standard advice).

Report: Manziel quadplex analysis PDF

If you assume the money that would otherwise be sitting around is actively invested in the market producing returns, you shouldn't wind up net-negative.

Run numbers as always, of course.

Working now, thanks.

In re the deal - ROI seems a bit low.

Is it possible to get 1.75% (rather than 2%) in KCMO?

The area seems pretty cashflow-reliable, to this out-of-stater.

Is this a personal (ie. not LLC) loan and do you still have credit?

Quicken Loans and other mainstream lenders will do a cash-out refinance.

Lending Tree and Sofi also do them, among many others.

It depends - as a seller you ultimately have more flexibility in choosing to whom you lend.

If you know the buyer, you might be willing to loan up to 90% LTV, whereas most banks want 80% or lower. Or, perhaps the buyer has no credit because they're young, but they have a steady income.