All Forum Posts by: Rudy Manna

@Chris Mason - The idea seems pragmatic and makes sense. Do you know any hml trying it out? i want to do it for my nxt deal, perfect for brrrr

 Cool, I lived there during the height of recession, and I remember around 2010-2011 some of my colleagues were buying real estate with their credit cards..those days :) 

I will refinance for the total HML loan and closing costs which comes around ~73% LTV. I am closing within 2 months so dont have the option of cash out refi. I am expecting to cash flow for about ~300$PM since just did most of the renno, and I have relationships in place to do property management at a lower cost.

I hear that Florida is a great place for BRRRR these days. Lived in Orlando back in 2010, though wasn't into real estate those days. Where are you doing your deals?

 Feel free to connect, I have been active in Tacoma and Southside for about an year. Closed 4 deals in that time. Learning so much everyday. 

 @Pete Perez , dont keep him too busy, he is ours..

just kidding :P

Thanks..It was a bank owned property in the MLS

This is one of our latest BRRRR in Tacoma. Overall the project turned to be pretty good, according to bank appraisal we have 40k+ (20%-25%) walk-in equity. $1450 rent versus total cost of 157K , just shy of 1% (0.93%). Most importantly we finished in 6 weeks.

The house is good SFR 3/1 with garage and 6000 sqft lot in a decent C++ neighborhood. It was great working with partners @Pradeep Tiwari and @Timothy Tooker.. Tim's construction company executed with an deep sense of ownership and responsibility..great partnering with both..

Will be posting as we complete more projects in tacoma, Puyallup, Olympia and the whole southside..

Property acquired: November 1st

Completed: December 12th

Here is the deal analysis.

Buying Cost: 113K

Closing Cost: 5K

Hard Money cost (Points+origination + interest): 8K

Rehab Cost: 31K

Total Cost: 157K

Appraised ARV: 202K

Walk-in Equity: 40K+

Rent : $1450

Gross yield: 0.93%

Among all the reno work -we changed roof, removed a large tree, paint and santitized interior, changed whole floor, cadet heaters and some electrical work, counter-tops, replaced some broken cabnets, resurfaced the rest, appliances, resurfaced the tub, all lights, plumbing fixes, dry-wall and yard cleaning. We left the windows.

Before

After

@Timothy Tooker

This topic probably have been discussed quite bit, but still want to hear about the experiences everybody had on saving with HML. I am from Seattle and mostly shopped around and used HML such as Eastside and Veristone. THeir rates all similar such as 12% with 2-4 points. I know most of you will advise moving into private money, but keeping that aside for a moment, are there any strategy people used to save money while working with cookie cutter HMLs. Is there a certain point (maybe after a certain number of deals), I can negotiate better rates or points? I was also wondering if they give a line of credit so that the points every time can be avoided?

Any real experiences are highly appreciated. Thanks in advance.

Any specific idea on savings with cabinets and countertops? Those takes up a chunk of costs..

Anybody had any luck with discounted supply store for those stuff..