All Forum Posts by: Kyle Sanders

@Marshall White I want to begin by saying thank you for such a quick reply! We sincerely appreciate it.

To tackle the response in a respective order, let me begin with:

1) You're correct on the first question, we are looking for labor and material estimates for the project... is the only way to obtain these, and I suppose present them, through a contractor?

2) In accordance to the ARV and the "As to be completed", do you personally do the before and after appraisal? Do you find that it is worth the additional cost upfront? (This is something I have not considered, so I appreciate the creativity). Based on a quick Zestimate overlook, houses for this size typically are 86-114k and that is a wide spread and mostly dated furnishings.

3) As for how the property would be represented, we are speaking with a bank and have the ability to do both private or through an LLC. All of that will depend on the packages that we are presented with. However I do agree the buy and hold is much more advantageous long-term, especially if the refinance looks good.The concerns you raised with the all of the taxable variables both positive and negative are things that can be easily overlooked and we appreciate you bringing it to our attention!

I look forward to hearing more! 

Thank You:)

Hi Everyone!! 

I apologize for the long post, but might as well share the details:) This is a very exciting time for us as this is our FIRST REHAB PROJECT! 

We are not completely new to the game, as in my business partner and I own 2 turn-key multi-family duplex properties that have required minimal repairs.

However with this new venture, we are trying to scope out our first deal to BRRR and see how things turn out. To give you a quick outline, the property is a Foreclosure that is listed for $54,900. In this area, that is high for an 1,147 Sqft, 2 bed, 2 bath that will need a PREMIUM facelift, as in the structure is still good but most everything will be replaced but the studs due to everything being outdated. That all being said, we are starting our offers low around $30k and looking for the bank that owns it to come down quite a bit and settle somewhere advantageous to both parties. Hoping that we can refinance and/or sell the house for ~$110-130k. (House next door is listed for $124k with 1,165 Sqft, 3 bed, 2 bath)

What we are looking for is a bit of detail on how to underwrite contracting fees and materials fees and if anybody had any quick formulas to run through this? 

Lastly, if anybody has a good idea on how to predict reappraisal and refinance expectations, please let me know about your experiences!

If you made it this far, we appreciate your time & interest and PLEASE leave a comment to help us out! (even if its just some motivation:])

We look forward to hearing from BP Forums and everybody involved in this community!! Let's get after it!!