All Forum Posts by: John Anderson

If I'm looking to do a BRRR on a Section 8 property in Cleveland, how do I deal with the appraisal on these properties? The cash flow is fantastic, but I'm worried about how a bank will view the value of the fixed-up property, since they are only looking at comparables (and not cash flow).

I've only been an investor for the past 10 years, so I realize I'm relatively new at the game. 

One assumption that I seem to keep hearing about is that the Midwest/South is for cashflow, while the coasts are for appreciation. Based on what I've seen over that time period, however, I'm not sure that this is true.

While properties on the coasts are certainly more expensive, in terms of % growth I've actually seen higher growth in smaller markets. Ex. homes in Detroit, Charlotte, Cleveland that I picked up for $50k-$100k four years ago have now doubled, while homes in the Bay Area have gone up by 20-25% (ex. a $2mm home is now $2.5mm). On top of that, the cash flow is MUCH superior to what I've been getting in the Bay Area (like 3-4x). 

If someone could let me know if there's something I'm missing here, I would greatly appreciate it. Thanks!

With interest rates AND housing prices continuing to be elevated, I'm curious about what types of deals folks are doing in the current environment? Is it all-cash, cheap money left over from the pandemic days, or are you venturing into D class neighborhoods? Just wanted to see what folks think makes sense at the moment.

Hello,

My partner and I formed an LLC recently. We have been paying all-cash for some small duplexes and single family homes thus far, but are looking to qualify for financing for our next batch of homes.

If anyone is able to provide us with any insight as to how best we can accomplish this, we would greatly appreciate it. We are looking to get Fannie Mae loans, but many lenders have informed us that they will require us to take out the home from the LLC first and put it in our individual names.

Should we instead create our own LLCs?

Any and all help would be greatly appreciated.

Thanks!

Hi all,

Just bought a small duplex in my personal name. I’m a relatively risk-averse investor and was wondering if anyone would mind taking a look at my policy and letting me know if my coverage is sufficient for this type of investment? Thanks!

Purchase price - $170k

***

Dwelling coverage - $170k

Personal property - $1,000

Loss of rent - $17k

Premises liability - $500k

Thanks! Can you expand on these rules? I’m not familiar with them

 Just traditional, please. Thanks!

It is not yet finalized, but I am close and I don’t want financing to hold up a purchase so I am looking now. Thanks!