All Forum Posts by: Karan Kanekar

Did you close? Don't close unless it's fixed completely 

This is the reason I usually ask for a credit, instead of a repair during escrow. It's very typical for a seller to do the absolute cheapest fix. Of course, that's not helpful to you at this point with this deal.

When you asked the seller to "fix it", what did your contract actually say? Who did the fix, and did you have your inspector reinspect after it was completed? I have never had a client try to get additional repairs done from a seller after the transaction closed, but if I were in your shoes, and I wanted to deal with the hassle, I would consult a real estate attorney. I think practically speaking it may be better for you to just take this as a relatively inexpensive lesson, and move on.

@Karan Kanekar-  did you have  this  repair   documented and   agreed to in writing  as  part of the   contract ?
try following up  with the seller  directly or their agent ....let  your  agent know what you are doing 

yes sir i did had it documented in my repair amendment as below…

The HVAC is to be serviced by a HVAC professional. The upstairs AC system to be restored to full cooling and working order.

Quote from @David Garner:

Yes... I'm buying off market at a discount amd adding value. There are always motivated sellers and value add opportunities regardless of the markedly cycle. I'm usually all in for less than 65% of ARV, so I'm good with prices falling or rising to an extent.

What market are you in? I typically hit around 70% ARV and people seem surprised. That's after paying my rehab team, I don't DIY since it's an hour away and I work for BiggerPockets full time.

Lots to go into that. I have 2 B+ range properties that I'm working on in DFW. They are not full gut, but close to it. Lots of deferred maintenance involved. My rehab budget ranges from $27-$36/ sqft for a builder grade remodel. If it's high end then the prices are getting pretty crazy. A friend who owns a tile shop said contractors are quoting $50k for a replumb and luxury tile shower. Not even an entire bathroom. She said more realistic numbers for that work as a high end glass frameless is about $12k. Take that times high end everywhere and you're looking at extensive costs.

Congrats on getting in the game!

In my opinion, BRRRR is just a more profitable version of a rental. Not drastically different, just more steps and effort required. I think if you understand them and have the capital then go for it! So long as you can put in the research and find a property that makes sense for it. I learned the rehab portion is the most strenuous and will require the most planning/thought ahead of time.

Hope it goes well and you succeed, good luck!

Don't move to the Ozarks...