All Forum Posts by: Shawn Bhatti

That looks like an awesome project Ty! Are you planning to hold these as rentals or sell upon completion?

FHA loan with you occupying for 1 year. After 1 year, move back in with your parents and rent out the 2-4 unit while you reinvest the profit into out-of-state properties!

Congratulations! I think many investors (myself included) enjoy turning rundown blighted buildings into a desirable, performing asset. Tripling appraised value is just icing on the cake.

Excellent work as always.

You're probably looking at 25k for a rewire on a property of that size, and another 15k or so to do all the drywall repairs. Anytime I see old ceilings and switches/outlets, I assume the properly hasn't been wired properly, especially if it was built pre-1950. On my rehabs I like to target these properties and redo everything so that I can be sure it was done properly. I'd negotiate down to a reasonable number or pass on this one.

Not a good deal. You are missing two criteria that generally work as a quick check for a great BRRR deal:

1. All in 70-80% of ARV, which in this case you are 92%..

2. Rent should be about 1% of the new loan, which you are about 0.7%

This would be a hard pass for me personally, and I'm not sure how you're getting an infinite CoC return on this one. Perhaps your down payment is erroneous?

I personally would not sell. Austin is one of the hottest market and has very strong fundamentals, led by a variety of jobs and tech job growth. Can you use a HELOC on it? This would be the best situation because you can use the equity to purchase a new investment without actually losing the equity. I'd say the second best option would be to take 50k out of the property since interest rates are at all time lows. Restarting the amortization schedule is never good, but since the loan is only 2 years old it doesn't make much of a difference.

Hate to break it to ya, but 15-40k won't take you far in real estate with that kind of business model. If you buy a house in that range for cash, you are looking at C-/D areas. Plus the property will likely be in bad if not unlivable conditions. You'll have to spend a ton just to bring it up to code and make it livable. Plenty of people with a lot of experience have made valid points about why this is a poor business model. It would be wise of you to acknowledge this instead of getting overly defensive.

Hey Tyler,

I lived in San Diego a few years ago and moved to Miami in August 2018. I have a few contractors who could definitely help you out and would be down to meet up and share those referrals with you as well as other ideas. Feel free to reach out!

Hi Jose,

For new central A/C with ductwork, you're probably looking between 8-12k including ductwork (per unit) depending on what all you want done, although for a duplex I think you could probably be around 15k total for both units. You should ask these companies whether they recommend ductless mini-splits as well, as these can be a cheaper and more energy efficient option in some cases. I have a few companies I can recommend for AC services as well as general renovations like kitchens/bathrooms plus a good electrician. Feel free to message me for references!