All Forum Posts by: Oscar Zendejas

For BRRR property, I generally look for a minimum 50% COC after the Refi. I have a spreadsheet I would be glad to share. Let me know if you need any contractor contacts for project you have coming up.

I have a value add Triplex in Rossville GA available. 15 minutes from Chattanooga. Message me for more info.

Best Regards

@Thomas Griego, @Travis Jacobs, @Rik Hunter

I have several contractors I can refer. Both as GC or specialty MEP subcontractors. I have used them for my last several BRRR properties. Feel free to send me a direct message so I can forward to you.

@Kwambe Smith

I manage my rentals at the moment. In regards to vetting, I will direct message you my typical qualifications for vetting. 

@Kwambe Smith

Favor applicants whose occupations are in demand as a result of COVID. The healthcare industry will only get stronger with the severity of COVID. Several of my tenants are overwhelmed with work. 

Hi @Chad Shell, great to hear you are taking the necessary steps to your first rental purchase. The BRRR method is one of my favorite approaches. I generally purchase cash, rehab, and and refinance with my lender at 75% LTV at 6 months of title seasoning. I have heard of investors using the delayed financing option where you can refinance in less than 6 months, however there are conditions where you cannot borrow more than the initial purchase price and no higher than 70% LTV. This reduces the potential cash-on-cash (COC) return especially if you have high rehab costs.

I would only suggest hard money after you have performed several deals and are familiar with all costs and potential rehab surprises that can be encountered. You can perhaps partner with someone (via equity position) in the property purchase to mitigate risk and liabilities. This would help you get familiar with the investment process and help distribute the initial purchase and rehab costs among equity partners. 

Good luck investing.

Oscar Zendejas

Hi @Kelly Kormos,

I just sent you the contact info.

Good luck investing.

@Nathan Williams

Hi @Nathan Williams@Eric C., @Andrew Ashby,

I have a great "jack of all trades" contractor for small to medium sized projects. I will message you his info now. I also have have several preferred specialty trade contractors as well. Just let me know what you need.  

@Guyoz Golan

I agree with @Ali Boone as far as the market at its peak. I am sure most here on BiggerPockets would back me in advising it is not recommended to invest for appreciation at this stage of the market cycle. 

Type A neighborhoods with little to no value-add tend to sell over asking price from the demand of owner occupants.

As @William Allen mentioned, deals can definitely be attained with work. In my experience the B and C neighborhoods cash flow very well. In fact, making contacts with local wholesalers will subsidize your deal flow efforts. I will PM you some contacts.

I'm a millennial myself and enjoy the downtown atmosphere Chattanooga offers. It is one of top rated outdoor cities in the country. 

My first purchase here was a banked owned property I purchased for $157k (with ARV ~$240k at time of purchase). I invested another $34k into rehab and repairs. The rehab duration was about 3-4 months. Then I had the property rented for $1900. At the 6 month timeline I cash-out refinanced at 75% LTV with appraisal coming in at $252k. So it was an ideal BRRR property.

In regards to PM services, I still consider myself in the early growth stages so I manage my rentals myself. I also tend to get down and dirty to keep my rehab and repair costs low. 

However, I would highly suggest to use local PM services for out of state investing.

Hi @Guyoz Golan, 

Chattanooga is a great cash flow market. I actually relocated from Southern California all the way to Chattanooga to start investing. The BRRR method is working great for me so far.

I would recommended checking out the Chattanooga towns of Hixson, Red Bank, North Chattanooga (Northshore), Harrison, East Brainerd, and Ooltewah. 

Great local people to know are @Thomas DeMoss, Realtor for buying properties, and @Brian Levredge, PM for managing properties. 

Good luck in your research and investing!