All Forum Posts by: Zak Parks

Generally, homes for sale will be in decent shape inside, as a lot of MLS contracts include repair agreements. If 3 similar houses in a neighborhood go for 200k, 200k, and 150k, then you know which one was sold that needs some interior work.

Looks like taxes kill that deal. But I don't think investment properties qualify for FHA loans, only primary residences. So you'd need to be live there yourself. Was that your plan?

Agreed with @Brandon Redfern. I'm doing exactly that in Greenville right now with a condo. Spartanburg may be easier to find deals, because it seems everyone wants in the Greenville market right now. But that's for good reason. 

Hey BP. I currently have a triplex under contract in upstate South Carolina for about 75% of what I think it's worth. My plan is to pay cash for this property and then do a cash out refinance on it because I think it may appraise higher. So basically I'd be pulling out all of my initial cash invested with a refi, aka using BRRRR without the rehab. Would you do things differently? After speaking with lenders, it seems I'd have to wait 6 months before refinancing the property. Are there lenders that exist that don't make you wait 6 months to refinance like Fannie Mae requires? Comps on the property are tough to find so I am also concerned about the appraisal being too low. Would income be a factor? Thanks for your help BP! -Zak

203k loans and homestyle renovation loans are products many banks offer for rehab deals. They may require you to jump through a lot of hoops though. If it's a good deal, then many hard money lenders will be eager to invest as well, most likely asking for 10-15% interest.

@Mario Brown thanks! As we are still working with a lower price point, we aren't yet picky about what parts of town we look in. So far they've been MLS and fsbo. We plan to begin mailing soon.

Greetings! I've been on BP for a month or so now and I've learned a ton, so I thought I'd thank you all and formally introduce myself. I'm a 22 year old Clemson graduate who has recently moved to Greenville for work as a full time software developer. I've always been interested in investing, but it wasn't until recently when I bought a primary that real estate became a reality and interest for me. Over the last few months, my partner and I have been able to launch a business and acquire 5 cash flowing rental units. It's been an exciting process that we hope to continue building upon. BP has been our number one resource, so I look forward to continue networking with you all. Feel free to reach out any time for whatever reason! -Zac P.S. As I'm new to the area, I'd be very interested in building relationships with wholesalers in the Greenville and Spartanburg areas.

Scenario 3: Cash out refinance. Buy more cash flowing properties with that to offset any mortgage costs(aka increase income). This may be an aggressive strategy, but it sounds like you have a lot of equity to play with. Why not put it to work? It wouldn't be difficult to generate a measly $800/month if you have 200k on hand... @Blair Boan

@Brian Beadle Ahhh I see what you're saying. I also prefer to be more aggressive like you so I can understand the internal debate of how safe to play it. To combat this, I prefer to look at the big ticket items(roof, water heater, HVAC etc) and if they're all in good shape then I know I can afford to be aggressive. In my area, "agressive" would just mean accounting for 2 months of vacancy + $1000 in minor repairs. I think a thorough inspection is key here. Turn keys with tenants in place would obviously allow the most risk. 

15k down payment + 3k closing costs + 5k unforeseen repairs= 23k. That down payment is for SFR where a multifamily could be more like 25% down. Not sure of your personal work/living situation, but many would also recommend having 6 months worth of living expenses saved in an emergency fund in addition.