All Forum Posts by: Matt W.

@Bryson Ragsdale

I don’t know if you are in a position to get a loan right now, but house hacking for a few years would give you such a great head start financially and ease you into property management. Any duplex near UNCW would be perfect and easy to rent to your friends, just make sure their parents co-sign for damages!

Thanks everyone for the words of encouragement! I'll be moving forward with the BRRRR as planned.

@Lina Bibikov

I’ve been thinking a lot about spec/build to rent. On very basic starter homes is there enough profit margin to refinance out your costs and keep it as a rental with no money stuck in the deal?

@Benjamin Seibert 

It has the potential to be the "perfect" BRRRR(get all my money out or even pocket a little money) if I keep my total costs to below 150K, there are smaller comps on the same block that recently sold for over 200k so I think I'm being relatively conservative about the ARV.

It should rent for @1350-1400, so cashflow about 450-500. It will be new top to bottom so hopefully lower repairs/capex. 

My wife's job covers our living expenses, so my goal is really long term cash flow with decent, middle of the road houses. This one fits the bill so I"m confident I'm making the right choice to keep it, it's just an odd feeling turning down money! "A bird in the hand...etc etc."

Update: I upped my offer to $4k and the bank accepted and actually signed it this time! Thanks for all the replies and fingers crossed nothing weird happens.

So I'm in the middle of my first BRRRR project in downtown Wilmington, NC. Bought from a wholesaler for 60K 3 months ago, after closing costs, new roof, cleanup and junk removal and some brick work I'm in it for 70K

The "scariest" issue was a broken main beam in the super small crawlspace.  After getting a few outrageous estimates, I youtubed it, bought a giant 6"x6"x8' steel angle iron beam, and got under there and fixed it myself.  Nasty work!

Anyways I get a cold call out of the blue from some wholesaler asking to buy it, I say make an offer.  At first they say 80K and I say no thanks.  They soon come up to 100k which, after hesitating, also declined. 

I figure after short term capital gains taxes I would only walk away with @15-18K. The house is a major rehab, looking at 75K more to complete but when it's done ARV should be @ 215-225. It will be a legal 4/2 and a good cash flow property.

I don't need the quick bump of cash, my long term plan is to buy and hold, do 2 BRRRR's a year for the next 10 years and should be retired. Plus my wife has a high earning W2 job and we would get killed with taxes on the profit.

My hesitation is that since this is my first MAJOR rehab, I'm worried some major problem will come up.  Admittedly, when I bought it I used an estimating software and so far the figures are matching pretty closely. 

I know that if I want to do 20 of these, I need to quit being wishy washy and don't even let the thought of selling right now enter my mind. I guess this post is just to vent! I am very bullish on Wilmington/ southeastern NC, as we have the highest ratio of people moving in vs. moving out in the country, good weather, low taxes, beaches and water on 3 sides so sprawl is limited. 

Thanks for reading and any advice is appreciated.

@Brandon Ribeiro

I’ve been thinking about the same thing. There must be a catch because I’ve read they are cheaper to build, more durable and allow for wide open spans inside, so why isn’t everyone building them??

@Greg H.

Yes we signed a buyer agency agreement. I know verbal agreements carry no weight, I just wish she had made sure the contract was solid before she told me my offer was accepted.

@Bill Brandt

Yes maybe too good to be true, but it was her suggestion to offer $3000 and it was quickly verbally accepted. I know that plus $2 can buy a cup of coffee, but still disappointing.

Hello agents, I’m posting to figure out if my agent acted improperly or just sloppily.

Backstory, I call an agent about a bank owned duplex that she had listed but had expired. She explained how that duplex had a title defect so the sale fell thru, but asked if I was interested in a cheap piece of land with a boat slip, and I said sure!

The land was purchased six years ago for 30k, went to foreclosure, bank took it back for 21k. She listed it for 10k for a year, didn't sell and sat unlisted for another year. She tells me she is about to list it again but thinks the bank would take a low offer right now before it goes on the MLS.

I officially offer 3k, sign all the paperwork to make her my agent in a dual agent capacity, and a few hours later she texts me and says the bank accepted my offer! Awesome, I think. She tells me it will take a couple days for the bank to officially sign and accept my offer. A couple days go by and I text to ask what’s next. She says “sorry the bank wanted me to list it again before officially accepting your offer and now there are multiple offers, so just give me your highest and best.” The new listing is for $3k, so of course that generates lots of offers because other lots with boat slips in this neighborhood are now for 20+.

I don’t think she is trying to be shady, but it seems like I was misled to believe that I was getting a deal before it went to market. I know she has an obligation to the bank as the seller, but I feel like she failed in her obligation to me as my agent. I wanted to get the opinion of agents about this, although I think since the acceptance of my offer was just verbal there is nothing I can do but bid higher.

Thanks for listening to my rant!