All Forum Posts by: Shlomo Rozen

I have been in the property management industry for almost 5 years. Most recently as a regional manager and now an asset manager for a large company. Managing a property is not a big deal to me. Having a BRRRR gives me that long term hold on the property which matches up to my goals. I would also look for BRRRR's that would not need a full rehab as a typical flip would need.

Time frame is probably in the 5 year range. 

Although flipping is done by others, it needs a lot of attention and correct planning to ensure the budget and scope of work all work out. With my busy W2 job I do not have time for that and cannot afford the extra pressure. 

I have been talking seriously with an investor about a potential partnership. He will provide the capital and I will do the asset/property management and we split the profits(his idea). I have a full time job and don't think I have the time and attention needed for a flip now. So I think BRRRR would be the best strategy. Either classic BRRRR or buy it tenant occupied and do a delayed BRRRR. My goal out of this partnership is to come out of it with cash for long term rental purchases(or keep these for the long haul). However I have heard from the podcast hosts that partnerships always need an exit plan. What do you suggest as some options?

There is an auction for a 2 bed 1 bath house (under 1000 square ft) building in 1985 in a very nice and popular area. The starting bid is around $6000. Comps in the area are showing $200k as a conservative sale price. There are many selling for more than that. I am not concerned about dealing with the previous owner, as I am an experienced property manger and have no issue with dealing with an eviction case. The question is the rehab... I am not able to see the interior of the house until after winning the bid and getting the owner out. Therefore there I will not be able to build a scope of work and get accurate pricing under after I own the unit. Is this a silly deal to consider? In my mind, its not a very old house and there for my not need a ton in the "bones". Even if we assume $100000 rehab as worst case scenario, if I were to win it at $50,000 we would still be at the 70% number. The question is taking the risk on the rehab and hoping for a higher sale price than the lowest comp.

Thanks for the advise. I discovered that the taxes are more than $1000 more than the agent listed. It makes the numbers much more difficult.  

Thanks for your thoughts! I was also considering just getting a conventional 30 yr mortgage on it (if I could get it for $85k or less) and not doing any rehab for a bit. There would be income on day one while I wait for the section 8 increase (60days). (As a property manager of multi family class c I'm very familiar with the section 8 process.)this way I could put off the rehab and do that a later date perhaps when the tenant moves or if the market changes for the better

I'm looking to enter the world of real estate investing with the BRRRR strategy. I have around $150k from a HELOC on my primary as capital. My agent send me a 4 bd 1 bath 840 sqft. It's currently occupied with a section 8 tenant with under market rent of $950. I've been told the owner has never requested an increase. The fmr is $2000 but My agent thinks it's more likely to get approved for $1400-$1500. Asking price is $105k. Comps are putting the ARV at max $150k. The agent thinks the seller would sell for $85k. It needs about $24k. I'd be paying 11%interest on my heloc. I'm intrigued by the fact that it's already occupied and that there will be income on day one and That I can start immediately with that rent increase request. The numbers came back at a $7500 profit on the BRRRR max. But I might get great cash flow if I could get the fmr rent rate. The interior rehab may be tricky with tenants being as there's one bathroom and I'd also do the kitchen. Your thoughts.....

I don't have cash on hand for a deal but I do have at least $100k of equity available in my primary residence that I could extract as a HELOC. I am curious what people on the forum feel about (A)borrowing against your primary home, (B) using this strategy for a first deal and (C) how to analyze the deal with the heloc terms.

thanks!

He is a cousin through marriage. I don't know much about the investments he already has but he has a partner on many of those. Personally he is a great guy but that doesn't mean much...

Hi have been wanting to get into my first investment for a while. I am a property manager and can operate the propert myself. But i have limited capital. Someone recently approached me about a partnership. The target is a rent ready single family in Detroit for a max of $50,000.He has a few other investment properties and has the experience I lack when it comes to analyzing the numbers and knowing how to to recognize a good deal. The issue is that he claims to not be able to get a mortgage in his name due to "having too many properties in his name". We would split the money down and responsibilities of the asset. Is this a risky scenario for me to be the only one on the mortgage? Would an operating agreement help mitigate the risks? My understanding is the operating agreements only help for entity's such as llc etc.