All Forum Posts by: Rudy Manna

Hello Seattle area investors:

Right now our BRRRR efforts are focused in the South-side, in and around Tacoma. Our general rule of of thumb to make a deal work, is to generate 20% extra equity and hit 0.9%-1% monthly gross rental yield (AKA 1% rule). While we have had fair bit of success, but its getting harder and harder to get new deals.

Do investors had success in executing BRRRR in other areas within an hour of Seattle. such as, North side (Everett- Marysville) or in the islands (Bremerton?). Look forward to hear your success stories.

 That's an open question. But we don't like too much leverage, so probably won't go for cash out.. the house was 3/1 with 1400 sqft

I own a house with unfinished sq ft in the attic. The county data counts it as unifinished sq ft. Can somebody give me some pointers about:

- How do I make it as finished sq ft in county records. I can finish the floor and wall. Will that be enough? Anything else I need to do before I apply for permit?

- How do I have it counted as aroom?

 Some of the Hard Money costs are wrapped in the loan, also mortgage allows 1%cashback, our total money in the deal was just over ~$15K.

 There is no Required wait period for rate-term refi. You may have to wait for cash-out refi.

Usually we put 10%-15% of initial purchase price, the rehab costs are wrapped into the loan as a separate renno loan. We do a rate-term refi of HML within 2-3 months, which covers both purchase and renno loan. However, the downside of not waiting for the seasoning period and doing a rate-term faster means initial money we put stays in the deal which is about ~5% of ARV.

We didn't do anything to the exterior. We left exterior paint and window as it is..Our math suggested that we will reach target ARV even without exterior work, in hindsight we were right :)

This is a BRRRR we finished about a month ago along with partner @Pradeep Tiwari..

@Timothy Tooker doubled up as agent to find the deal and GC services..

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Overall, we generated quite decent walk-in equity ($36K, 18%), and cash flow rate of 0.95%..

We rehabbed mostly the interiors, we left exterior paint and windows, to make the numbers work.

Here are the numbers:

Purchase: $130K

Hard Money Cost: $8K

Construction Cost: $24K

Closing Costs: $4K

Total Acquisition Cost: $166K

ARV: $202K

Rent: $1570 (0.95%)

Walk in Equity: 36K

Before:

After

Hi @Jeff Pape, how much did the complete rewiring cost?

Its quite simple in fact.

If you will need to sell within 3-4 years, sell now, since there is a downturn round the corner.

If you can afford to hold for more than 5 years you will have great returns. Seattle Tech employment landscape and long term trends are super bright. 

I will never sell in Seattle and buy in Tacoma, unless I need the cash flow. Cash flow can never beat appreciation in the long run.