All Forum Posts by: Kent Verge

In the last few weeks I have listened to hours of BP podcasts and read hundreds of forum and blog posts. I realized today that all of the new ideas -- some that I can use and some that I can't or won't -- have opened up my mind to possibilities that I didn't see before. 

Here's an example: I put an offer on a SFR in Florida about two weeks ago. I planned to put 20% cash down and finance the rest. It also needs some rehab, and I wasn't 100% certain how I was going to handle it (probably using more cash which would have more than doubled the down payment, or do a cash-out refinance against some other property -- not something I really considered).

Here are the ideas I have had since; any would work for this deal, though some are better than others:

• Use crowd-funding for the repairs
• Find a rehab loan to include purchase price and rehab
• Ask seller to carry a 2nd to cover the rehab
• Ask seller to finance entire sale and use cash for rehab
• Use HELOC to make a cash offer and for the repairs
• Find a partner in Florida who has cash but no credit; split DP and rehab costs appropriately
• Use hard money for purchase/rehab

The HELOC actually makes the most sense. I also found some great HELOC offers (i.e., See Navy Federal's HELOC for primary residences -- 95% LTV!)

Over the last two days I have been chatting with a new member who wants to buy a triplex or quadplex. While helping him out, I found a 14-unit multi that that I could also swing with HELOC. It's something I never would have even considered prior to BP.

Anyway, huge thanks to @Joshua Dorkin for the creating such a community of sharing.

Welcome Caleb! I was just down in Pensacola and looked at some houses while I was there (made an offer on one). 

There are some opportunities on SFs in the Warrington area with an occasional MF mixed in. I have seen more opportunities for MFs up around the NW area near the airport; I didn't look up that way this trip though. 

Depending on what type of financing you have available and how much rehab you're prepared to do out of the gate, one of the houses I looked at may have possibilities. Shoot me a message if you're interested, and I'll send you the details.

It also helps if you can document, for the bank/appraiser, how you came up with *your* valuation. Assuming, of course, that you did some type of due diligence to come up with your offer. ;)

I use locks with interchangeable cylinders from LandlordLocks.com on all of my rentals. They make rekeying a DIY job, and I have a master key for all of the units. During rehab, I give the contractor a key and then change out the cylinder after the work is complete (I have extra cylinders to rotate them out).

It it's a rental, that is..

@Jeff Lee as others have recommended, I would go with something in the light tan range for the walls and white for trim. Also, as we found after the 3rd house with the 3rd color combination, use the same exact same colors and paints for future properties. Otherwise, you'll have to manage paint colors for each property (yuck!).

It's in NW Florida, and near the water the temperatures don't fluctuate as much as they do inland. As you suggested, I like the charm, and we plan on furnishing it with a 50's mid-century feel as well.

There are some repairs that need to be done first, and we'll hold off on too may more upgrades until we have stayed there a couple times.

The main house, however, will get bit more TLC up front.

You could use a 3.5% HUD loan on a duplex/triplex/quadplex, live in one unit, and let your tenants in the other units pay your mortgage. If you find the right place, you could have a positive cashflow and live for free.

I installed Allure over concrete in one of my places and will use it again. It has a rubber backing, so unlike other laminates, you can cut it with a utility knife. Once it's snapped together, it's waterproof, and you don't need an underlayment or any prep on the concrete as long as it's smooth and level. I also like the feel walking on it (it doesn't have the click-click of other laminates). It also looks pretty good installed.

My installer said this was the easiest floor he ever installed; the whole house took an afternoon.

I had my offer accepted on a waterfront house in Florida that was built in the 40's, and it has a smaller separate cottage in the back that still has the old slatted jalousie windows. i know that they have to be terribly inefficient from an energy standpoint, but they have a very nostalgic feel to them for a waterfront cottage.

I plan to rent out the main house and will likely do vacation rentals in the cottage (so we can use it ourselves). That said. would I be better off replacing them for the efficiency or leaving them for the ambiance? It's pretty small (580 SF) and on a shaded part of the property, so it probably isn't a huge cost factor either way.