All Forum Posts by: Kris Wong

If you don't have a CPA, you should have a CPA. =)

Oddly enough, my property manager found the lowest price on window units from Cincinnati Coin Laundry. Still pretty expensive IMO. I would check that out. If you find a better deal, I'd be interested to know.

You may want to look into passive investment in a multifamily syndication deal. This will allow you to invest your capital in a large apartment deal, with no work on your end beyond vetting the deal sponsor and the deal itself. For your investment, you will earn quarterly or monthly distributions, as well as your pro rata share on any capital event. Minimums are typically $25K - $100K.

https://www.biggerpockets.com/forums/311/topics/417526-ultimate-guide---cincinnati-neighborhood-grades

That seems like a rather ambitious way to get started in real estate - new development, of a type of property/residence in which the regulations and zoning are unclear. Many moving parts. It's great that you're thinking outside of the box. My personal recommendation would be that you look for something a little more straightforward, to get your foot in the door and start building relationships with folks who could help you pull this kind of project off.

To piggyback on what @Jaysen Medhurst said, BRRRR using hard money can be a great option, but in order to refi into a conventional note, you will need to be able show reserves (6 to 12 months worth), and have a reasonable D/I ratio.

1. Hard money is expensive. Typically 1 to 2 points and 10 to 12%. It will be very difficult to find a deal that makes sense in this market with that kind of capital cost.

2. Hard money loans typically need to be paid back in full in 6 to 12 months. I am sure you can find more flexible terms somewhere, but it's not going to be 30 years by any stretch.

Generally speaking, I agree with @Curt Davis. You may be able to find private money that is a little more palatable, if you find the right deal.

That's a hell of a lot of foundation work. I hope that includes a healthy contingency. If we apply the general formula for flipping: ARV * .7 - rehab costs, this property is worth approximately $46,400 minus your rehab costs.

If you decide to keep it, you're looking at quite a healthy amount of cash or credit required to get it market ready. However, if you are able to get 75% LTV on an ARV of $132K, then you're looking at potentially pulling out $99K on a refi (minus closing costs). That's assuming debt is readily available 6 to 12 months from now.

Your company agreement can and should specify all of your bullet points in detail. You will need an attorney to draft the company agreement. You can form your entity (likely an LLC, talk to your CPA) in TX or OK, or anywhere you want, really, but you are doing business in OK, so it will have to be registered as a foreign entity there if it's not formed there (and it will have to file a tax return as well). It will likely be more straightforward to create an OK entity, but you should consider your mid to long term plans and goals. There are other legal strategies that you could consider, for anonymity, but I would recommend to start simple and fold those pieces in as necessary. However, I am not an attorney.

You don't mention an ARV or a rehab budget, including holding costs, so we can't really offer a recommendation one way or the other. I can tell you that you're $26K in the hole before you even start talking about the foundation, so let's just say that it needs $30K before you can add any value to the property. Obviously that could be much higher depending on the scope of the foundation work. Any potential buyer will discover this during their due diligence. I would start by trying to negotiate the back taxes and the leans, to see if you can get rid of all that for less than $26K. Even if you decide to sell it, most buyers don't want to deal with that.