All Forum Posts by: Nicholas Lohr

This has 'talk to a attorney' written all over it. You need a partnership agreement with all of the answers to all that written out. I'm doing the same thing at the moment and we are forming a new LLC with a specific partnership operating agreement for the specific deal in question that answers all those kinds of questions.

I don't know if this is germane to your situation but one thing I learned is that every partner has to be an active member in the deal because if a partner is just passively putting in money then it technically becomes a security which means you need a securities lawyer and things get more complicated... and expensive. 

You didn't mention if this was a fixer upper or how much equity you have in it but November 2018 is pretty close, assuming the banks want a year, so if thats the ONLY issue just wait it out. (and save more $ up!) 

well if you can find another rental in Houston for a down payment of 25k (amount you have in equity) and it cash flows at least $220 per month (890-670) then why not?  

Keep in mind a few things though...  you will incur costs associated with selling it and you're going to want to do a 1031 exchange to avoid taxes which which means you have to have the next property you are going to buy identified and ready to go. I assume a 1031 has it's own costs associated with it too. 

I think the saying, 'better the devil you know than the devil you don't' might fit here. 

First step is to learn the Houston market as well as you can to see if it's worth the trouble. 

check smoke alarms and carbon monoxide detectors.  fresh batteries in all.  

Definitely ask for it.  If they have an issue with providing it they you have to ask yourself, "why aren't they providing it?"

If I wanted to move into a place, either now or in a year, I would have no problem providing documentation to the landlord about myself both now and in a year. 

This is going to depend on your location but one big thing to keep in mind is the "time feasibility."   As of Aug 2018 I am 14 months into a new ground up construction project and haven't even broken ground yet. 

how are you getting away with only 10% down payment? 

I see. My vote would be to rehab whatever needs to be done in order to do 2 things, makes it desirable to tenants who will pay more in rents because a big part of the appraisal process is what the new rents are, and make the property in good enough shape so that it wont give you headaches going forward.   

Also read through this guy's blog: 

http://sacramentoappraisalblog.com/category/apprai...

Some useful stuff here. 

And yes, pay attention to comps that are rehabbed in the immediate area too, that's what appraisers use. 

can you rephrase this or expand on what you're asking?  I want to be sure I'm answering what you're really asking. 

Can you BRRRR a Self Storage Facility?

Are there any big similarities or differences compared residential BRRRRing? 

Has anybody used this BRRRR cash out strategy to buy more self storage properties as it can be done with residential?

I know the rehab "R" would be more like getting more storage units rented or increasing the rents rather then fixing up the property, even though you could do that too.  

Specifically hows the financing, how do they appraise after the '"rehab," and do banks lend about 70% of the ARV as they do on residential properties?