All Forum Posts by: Lee Haenschen

Shaun the bank I was at told me because it was an investment property that I would have to do a commercial loan. 

Is it common to loose 90% of your cashflow when you refinance? You hear only the good stories with the Brrrr strategy on here.  I am suffering from information overload. I am panicking about making my first deal a good deal. It took several years to come up with down payment money. If I screw it up on the firs purchase it will take several more years to get back up and going for another try. 

Haven't checked in the last month or so. Somewhere around $22-25K. 

I could use some words of encouragement. For over 2 years, every moment I can steal away from family and my business, I look at homes to try and start my portfolio. Mainly looking for some to Brrrr at the moment. 

It seems that all homes in my price range (sub 100K) have low ARV's . And that once you do a light rehab you would not be able to take much equity out of the home. From using the BP calculators, most of the homes I have looked at - after the light re-hab & refinance, you would only be able to get half of the money you put in back out. Plus it would make the mortgage payment high enough with a commerial loan that you would only cash flow $50-80 per month. I have strong credit north of 750, I talked with two banks and because I am new they said I could expect my interest rate to be around 5.9% . With that high of an interest rate I have yet to find a deal that will cash-flow enough to take the risk.

If your marketing to people who don't live in the home....how do you get keys to look at the home if they live several hours away? 

Do you pay to have them next day aired? Then send them back after you have inspected the home to make an offer?

As far as I've read, really knowing what the ARV sounds like an art form!

I think that's something that I will struggle with for a long time. I think things are either severely under valued or over valued. 

does anyone find that targeting homes that appear to be vacant nets more responses and deals then doing any kind of blanket marketing to large areas? 

WOW  Shaun, I take that as proceed with caution lol 

I would other then usually I am driving by at 30-50MPH on my way to another job while working (lawn maintenance) So stopping to knock on the door at this point is a no-go. 

One of these days I will be able to make more time for driving for dollars and actually be able to dedicate a time each week to this. As of right now I do this at random times, sometimes passing the house for weeks at a time before I write down the address. Then by the time I actually start searching for the homeowner the house has already been purchased and is in the middle of being remodeled. My wife and I are currently discussing me selling my business so we can turn the page in life to pursue real estate and some other things we have been working on. Long rant over....

Good stuff! Thanks I am reading some of that right now!