All Forum Posts by: William Lee

I would love to buy the house with seller financing. I tried to get creative with my terms and presented the benefits of seller financing. But, I am not sure the owner wants to give up owning this house quite yet. They are looking at possibly doing some renovations and move into it themselves. I know I cannot be a property manager in VA as I need to serve under a brokerage. But, I thought if I could do a sublet, I would work around property management regulations as I would be invested in renting the property and then renting it out myself.

I know of short term rental arbitrage (or at least the philosophy of it). I am talking to an friend who is trying to figure out what to do with their mother's house. She passed away several years ago and the house is now owned by my friend and his sister. I have asked for the past several years what their plans were for the house. They have stalled by saying they need to deal with the 70+ years of accumulated stuff in the house. Well, now they are ready to do something with it as they don't want to have to pay insurance on a vacant property anymore. I have proposed three options to them. 1 - Buy it outright at a steep discount. 2 - Buy it for a higher price with seller financing. or 3 - rent from them and turn around and rent it out to a long term renter. I am not looking for the job of a short term rental manager. And, I don't think the market will sustain a profitable AirBNB market. But, it's a great long term rental neighborhood. Do you all have any thoughts or opinions about renting from my friend for $800 and subletting out for $1400. I will cover maintenance calls. But, he will be responsible for capital expense projects. I have 5 single family long-term rentals in the area. So, I am thinking this will be a decent cash flow play. Am I missing something? Please let me know if I am missing anything on this proposed deal. I know it's not a bajillion percent return that AirBNB arbitrage seems to offer. But, as a buy-and-hold investor, no large down-payment and cash flow seems to be very interesting!

Hello and welcome to Richmond! I would love to connect and be put on a list of buyers for when you start getting your wholesale business up and running. I think Richmond is a great investment market and know that you will crush your goals! I look forward to meeting you and doing a deal in the near future with you. 

High BP! I am writing with a question regarding hey property I I am improving prior to getting refinanced using the BRRRR method. I purchase this house and it came with tenants and several dogs. I have spent a good amount of money just bringing the property back up to livable conditions. I now need to think about the floors. There is some pretty cheap carpet in two of the three bedrooms and the living room. The house is full of stuff and tenants.

How much will it affect the appraisal if I don't deal with the floors but leave the beat up carpet? I believe there are hardwood floors under the carpet which I would refinish if the house was empty...but it's not. The tenants don't keep the house very tidy either. How much will these things negatively affect the appraisal? 

While the cash flow has been nice, doing the BRRRR with an inhabited property is far from ideal!

Thanks for any wisdom you can share! 

Hi BP,

I am an investor based out of Richmond, VA. I have a small portfolio of single family rentals locally. I have used the BRRRR method on my last two acquisitions with my first two using conventional 25% down payments. My latest property is in the final stages of renovation and then it will move to the refinance phase (utilizing a HELOC on my primary residence).

I am looking to expand my portfolio. My next acquisition may be a rental property in New Hampshire for my in-laws (I acquire the property and fix it up, they pay the mortgage and maintenance on it as long as they live in it...which should be for the remainder of their lives). I have established a fix and flip line of credit through Finance of America. I wanted to use that line to purchase and rehab a property for the in-laws before putting it under long-term financing but come to find out that there is a term in the agreement that prevents the line to be used on a property for family members. I am now looking to other sources of funds for this possible deal. I am looking at a property that is listed around $150k and will need $20k to fix up. I anticipate a $200k ARV. I am hoping to get the property for less than asking due to its condition. But, I wanted to think through funding sources before going in with an offer. Does anyone have a good solution that would work for this kind of deal involving a family member? Do hard money lenders have similar restrictions?

I do understand this won't be the most profitable deal. But, I am hoping to earn a different kind of treasure with this property.

Thanks for your help!

Mac

I see your cash-out refi product here. Are you able to give the criteria for how you calculate the loan amount based off of cash flow? I have a property that I am ready to take my cash out of after buying it in February. It is currently leased.

Hey BP!

I purchased a BRRRR deal (or so I thought) in mid-February with a combination of my HELOC and a couple of private investors on 12-month promissory notes. I am coming to the end of the rehab period. The property is rented. I am looking to pull out cash to pay off the investment sources (HELOC and promissory notes). I approached a bank that I have used in the past for this process and they said that there is no market for this product currently. There are mortgages for purchasing and for refinancing existing mortgages. But, funding sources/investors are not comfortable with cash-out refinancing for investors.

Does anyone have a sense of what is going on with that market? I am concerned if I wait too long to get the property appraised and refinanced the appraisal value will be low (possible market slump/crash?). I don't know what happens behind the curtain of the mortgage world. So, does anyone have an insight into what to look forward to with cash-out refinancing? Will it come back soon? Will it ever come back?

Thanks for sharing your wisdom and knowledge.

I too would be interested in knowing which bank you use as well as what you presented to the appraiser to change the value so dramatically. Please let me know either with a PM or add to your post! Thanks

I am interested. Can you please send additional details. 

Thanks

Hi, I may be interested in this. Could you please send the details. Thanks