All Forum Posts by: Shawn Alexander

Inspections are key, get those done. I don't know how handy you are but also when you do a first walk thru look at the ceiling for water damage, inside closets for water damage. Check the caulking around bath tubs and counter tops, if there is mold there he doesnt do quarterly inspections to make sure the tentants are destroying anything around those things. Check under the sinks for water damage there, if its bad chances are your floor under is gonna be bad. I check furnace and water heater also, if the water heater has a ton of scale around it that can be a sign of lazyness and lack of care. Key notes to, take a look at the roof if its wavy thats bad. Check foundation for cracks and in the basement if there is one for water staining. Another thing I tend to look at is windows and windows with AC's in them. Most of the time the tentant puts these in and if done incorrectly you can get tons of water damage running down your window/wall. 

So in my area there are a couple vacant lots, I have done some research on the forums and found some good questions to ask such as zoning and titles or liens. My main question is once I purchase the land what is a typical cost to build a duplex/triplex on that land. How much cash should I make sure I have. I know depending in areas ect, but was wondering if anyone had a rough number to see if even looking in lots for duplexs are even in my ball park.

Thanks!

@Brent Coombs

Yes you're correct on that. But I have been letting my money sit in the Rental for a time since COVID. Im considering pulling it out in January to prepare for the possiblity of all the Foreclosures that will be sprining up in 2021. That is what I am waiting to prepare for, was just curious if investors are being careful with their money or pulling it out and getting ready for 2021.

@Alyssa Dyer 

Always looking for a good read, I'll take a look at it. Basically was hoping all my other fellow investor's were thinking along the same line.

So I live in IL and I am looking to invest in 2021. With everything going on with our market where I live im not sure if it will be a small correction or a huge correction. I'm considering refiancing my BRRRR property here in Jan of 2021 to get cash to pull the trigger on some possible foreclosures in my area. Mainly looking for duplex/triplex, I considered a 5 plex near by but I think its not priced currently to make a move on it. I should have roughly 70-80k cash to play with so I guess im asking does anyone else think this is a good idea? Any past experiences with market corrections and the right time to pounce on them?

Thanks!

Awesome info!! Thanks so much, this is a big move so just reaching out and trying to make sure I have everything checked.

Justin, thanks for taking some time and giving me something to think about. I do know the cost of rehabs and all that. The problem I am having with a larger 5 plex in my area is there just any that have sold in the last 10 years. So the 5 plex is for sale and over priced I think I can get it for 320, all 5 units need to be rehabbed how do figure out what is the after rehab value?

Looking to purchase a 5 unit complex, 4 unit is 2 bed 1 bath 1 unit is 1 bed 1 bath. How do you determine what the rehab value would be if you have no local comps, any help would be awesome!

Will, That book is on my next to read list, thank you for that. Yeah I've done a lot of reading and research. The area I think would be in a Class C neighborhood currently (lower middle, upper lower). Its nice to see people on here communicating and staying positive!

Im about to purchase a home in IL. I can get the single family home for 150k, ARV is 158-168k. I'd have to put into the house 8k cash to rehab(kitchen). So I used the BRRRR calculator, and I should have a ROI of 16.1% I've personally set up a minimum of 15% ROI at least on my first home so I can get a feel for the process and working thru leases ect. Now I've put out already like 20 offers, this one im negotiating and I feel like I am about to nail this contract. So I have a few questions.

-Is this ROI sufficient for a first home?

-The person im negotiating with has decided to no longer counter, they shut down even after I provided comps and facts. With that being said should I keep pushing or just do a final best offer?

-Have you bought a property thats basically rehabbed, slightly under ARV, and with little cash to invest in the rehab for a rental?

Any advice is appreciated!

Thanks!