All Forum Posts by: Yang Zheng

The unit we're rehabbing has a regular bedroom and a 70 sqft den that has a window but no closet. Can this unit be leased as a 2 bedroom? The "den" has the two egresses and meets minimum square footage. All that's missing is the closet. Any advice is helpful! Thank you.

@Nate Monson That anecdote is good to hear (although I'm sure not representative of all situations). This one is in a university area so I think will have a certain amount of protection although not impervious.

@Alexander Felice That's precisely my concern. What if the change in % ARV actually means I have to contribute more equity rather than being able to withdraw equity through the BRRR method. (Side note: We actually had a much higher than expected ARV appraisal come in yesterday and I'm getting more and more comfortable that we've structured the deal in such a way as to withstand some of the ARV deterioration possible during a recession)

@Brandon Roof @Nate Monson, thank you for your insights on this one. I'm definitely keeping multiple options open on the BRRR property. As I've been talking with more people, I'm also getting more comfortable that if a recession hits we may not likely see the dramatic drop in housing prices we saw in the 2008/2009 crisis. The local area is also a little more recession-proof. All giving us more comfortable. Thanks for your help!

BP Community: If an investor is on a short-term, high interest rate loan that helped to acquire and rehab a property, what happens if a recession hits before the property is seasoned and refinanced?