All Forum Posts by: Yingchun Li

Thanks for your reply. The seller is going to rent the house on a 1 yr lease contract with us then move out.

We are going to purchase a house FSBO, the sellers are living there and there is no big rush to close it in 7 days or 2 weeks. Is that possible to get the conventional loan to buy it? We plan to buy it as a rental. The house does need the rehab to get refi cash out. Roof, AC, foundation are fine.

@Brian G.

Thanks for your explaining. I am also thinking about the same questions, now it's pretty clear we gonna purchase the house with a personal name then let the lawyer transfer the title to LLC. Do we still need to buy the umbrella policy after it's transferred to LLC?

If so, what's the Umbrella Policy from the insurance company you suggest?  Thanks.

Hi, dear landlords on BP!!! I am going to close my first BRRRR house this month and will start the renovation next month. The strategy for this house is for rent for a few years then sell it or maybe just keep it as a rental house. So we gonna redo the whole house as we want the ARV good because we use the hard money.

We already have a family who will rent it and they have a beagle dog. So is that better to have the tile even in the bedrooms? As the dog may scratch the laminate floors even while they run around in the house.There are laminate floors in the living room and bedrooms but some part is old, so we plan to remove them and put the floor looking tiles in the living room and kitchen. But as they have dog and for future renters who may have dogs, is that better to put the same tiles even in the bedrooms and the hallway? 

And any other tips for renovating rental properties? I appreciate all tips. 

We use 70% rule minus rehab/fixing cost and actually, we prefer hard money. We are in Houston market and we prefer to use the local hard money as the appraisal comes out better!!! We heard bad stories of people using the hard money company from another city for better interest or maybe lower points but the appraisal comes out lower.

Because they watch the deal ( if it's not a deal they won't lend you any money), and control the rehab money by inspection. (they inspect the house every ten days and send out the rehab money). They do that is for control the rehab process and quality to the final ARV.

Then after the rehab is done, start the refi immediately. You can start all paper even on the closing day. It also depends on your financial status, when we refi our deal, we need to show the lease contract to the lender. So have a tenant there asap is the key even you can give 1 month free then write if off from your tax. 

Normally refi to conventional loan is 75%. Then you need to pay lender's fee, appraisal again. Make sure you have the survey. Better use LLC to purchase even the interest rate is higher but it protects your assets!!!

We learn so much from the first REFI and all those real costs which most people won't tell you until you see the numbers!!! Talk to the lender, hard money company, and banks. Compare them. 

Good luck!!!

I recommend Anthony. He is a responsible GC. We have worked with him a few times and he always gives good estimate rehab cost and good bid. Plus, he lives in Spring, TX. 

I am going to PM you his contact as the forum doesn't allow me to post it.

I am also looking for the houston BP meet up. 

If you are just looking for properties to flip, the easiest way is to contact lots of whole sellers, get on their mail list. You don't need to spend much time on looking for properties on the streets or putting out bandit signs and direct emails.  They do the work for you.  And find those INVESTOR FRIENDLY realtors!!! They will send you foreclosure deals and more. And of course, network, tell people what you are looking for. 

Make sure their mailing add is the same or different. Mail them.

Try to find out their contact number, call or message them. 

Try to find out their relative's contact, reach them.

Talk to their neighbors, find out the contact. 

Same here looking for real estate CPA who also has rental properties. 

Please recommend to me. thank!