All Forum Posts by: Ryan Wilkerson

@Tim Jacob Right on, so about where I was anticipating it at $1800/month.

@Tim Jacob Awesome, that's what I thought too about being able to rent. Out of curiosity, what's your opinion on market rent for 1100 sqft above grade rowhome with 3BR/1.5BA, new HVAC, new renovations, finished basement on Roland Heights Ave in 21211?

@Tim Jacob totally agree. This is in 21211 off of Cold Spring Ln, just north of 41st St, so not quite in Hampden. It's across from an elementary school and is down the street from new townhomes being built that were selling in the $300's. Stable, clean area. I don't think there's a right or wrong here b/c the monthly loss would be temporary and minimal, but stacking capital and staying patient for a less volatile BRRRR conditions is attractive. Appreciate you taking time to give your thoughts!

@Marc Stevenson that's awesome! So you did the cash-out refi using a 3 year interest only? I'd be interested in that, but at 7% the rate isn't that much better with a regular 30 year fixed cash-out refi, so I'd still be in a position where the rent collected doesn't cover the mortgage payment for awhile. I'd rather buy and hold, as my portfolio has been growing consistently over the last few years, but the cash after flipping that I could bank and stay patient for better BRRRR conditions is awfully attractive.

@Jack Mawer thanks! It was an off market deal that was referred to me from a very good past client. I went through their options from selling it directly to me to fixing it up themselves and flipping it, but they just wanted to be done with it. I originally wanted to keep it as a rental, but leaning towards taking the cash, padding my personal capital reserves for future investments, and staying patient for future buy-holds. As a lender, how do you see rates playing out over the next 6-12 months? They seem to have found some stable ground lately.

@Eliott Elias not necessarily in Baltimore, we're still in an inventory crunch. I'll list it slightly under market value to create competition. 

@Scott E. kind of how I was leaning too, the validation helps. Appreciate it, man!

Happy Holidays, everyone. Question for the community. Currently in the finishing stages of a property I bought in September to BRRRR, but it looks like I'm going to lose a little money monthly when I do the cash-out refi in a couple months. At today's rates, payment will be roughly $1725-1750/month and top end rent for the area is $1800/month. I'll definitely get all of my investment and money spent on overhead back in the refi, but do I continue forward with the BRRRR, take the small loss each month, and bank on rates eventually coming down some more where I would refi again to bring the payment down OR pivot to flipping it where I'd make, easily, $40-50k net profit AFTER setting aside capital gain taxes? Thanks for your thoughts and suggestions!

Here are the details of the deal:

Purchase price: $100k

Reno: $60k

ARV: $240k (conservatively)

Cash-out refi mortgage: $180k

New payment: $1725-1750/month

Expected rent: $1800/month

Market value to flip: $240-250k

@J Scott I know you have new revised versions of your books coming out in a month or two, having read the first versions how much of a difference would you say there is in rehab costs today vs. 5 years ago with labor and material costing more now. I realize this is a loaded rather vague question, just curious about a ballpark percentage. Looking forward to reading the new versions!

@Don Carey  

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