Forensic Property Investor

IT guy (20 yrs) building a real estate empire 🏗️ | California BRRRR w/ an ADU twist | Deal #1: 3 rents on 1 lot | every number, win + mistake on YouTube ↓

[Forensic Property Investor @REIforensics]

Deal #1 (Central California) update. The main house is 70% done. I'm fixing it up to rent, not redoing the whole thing.

The ADU plans are sitting with the city waiting on approval. That's where the heavy work is, so I'm kind of stuck waiting.

Ep 6 is on YouTube @ForensicProperty

[Forensic Property Investor @REIforensics]

Deal #1 (Central California) came with a brand new water heater. Kind of the only new thing in the house. I figured I'd end up upgrading it.

Then the water heater at one of my other rentals died. So I sent this one over instead of buying another. Worked out, I'm going tankless here.

Ep 6 is on YouTube @ForensicProperty

[Forensic Property Investor @REIforensics]

The main house roof had leaks. I put a number on the repair before any work started.

It came in off by a couple hundred dollars.

Not everything on Deal #1 (Central California) went over. Ep 6 is on YouTube @ForensicProperty

[Forensic Property Investor @REIforensics]

@rickycarruth What if you are barely starting out? License test next month

[Forensic Property Investor @REIforensics]

@REMarketingTips Si

[Forensic Property Investor @REIforensics]

I budgeted $3,000 for the ADU plans. The quotes came back at $15,000.

I settled at $4,000 per ADU. Still over, but nowhere near $15K.

Ep 6 is up on YouTube @ForensicProperty

[Forensic Property Investor @REIforensics]

Get an actual insurance quote before you offer. Then rerun it with a bigger premium. If it only works at today's rate I'd pass.

[Dylan🔨 @dylanclark__]

Anyone buying rental property now, how are you working out the numbers with insurance going up all the time ?

[Forensic Property Investor @REIforensics]

@REIMakayla that sewer camera tip is legit. my inspection is how i found out the house was on a septic tank, right in the middle of town

[Forensic Property Investor @REIforensics]

@N8RealEstate makes sense on flips. even holding mine as a rental the long project part is rough, 70 percent done and still cant put a tenant in

[Forensic Property Investor @REIforensics]

@BiggerPockets honestly id quit underbidding sooner. i lost every single bid for like six months before that sank in

[Forensic Property Investor @REIforensics]

One lender wanted over $100K cash to close. I was planning on around $50K.

I picked the better fit, not the better lender.

Ep 5 is up now on YouTube @ForensicProperty

[Forensic Property Investor @REIforensics]

MYTH: septic in the city? Walk away.

FACT: I negotiated $14K off Deal #1 in Central California. Still had to price a $10K city cost I didn't plan for.

Repair still due. Numbers still had to work.

Ep 4 is live @ForensicProperty
https://t.co/5HTmq22uSo

[Jim Wood @jimwoodjr]

If you're building an ADU in LA County, the new rules are still stuck in draft https://t.co/gufOi5fY9T

[Forensic Property Investor @REIforensics]

Agree. And the overrun isn't always the trades. City fees and hookups can show up after you thought the budget was done.

[Frank @CA_Xtian]

Every rehab runs over budget. Put the cushion in your offer, not in your hopes.

[Forensic Property Investor @REIforensics]

The ARV guess is the one I'd watch. Use sold comps, not listings, and assume the appraiser picks the lower ones.

[Christian Arce @ChristianAArce]

BRRRR rarely fails at the buy. It fails at the refinance.

The investor overestimates the after-repair value, underestimates lease-up time, and finds out the takeout loan is smaller than planned. Now capital that was supposed to recycle is stuck in the house.

Our Fix & Rent program covers the first half of the cycle:
- 12 to 18 month terms
- 80% of purchase plus 100% of renovation
- Up to 90% for experienced buyers
- 660 minimum credit
- $75K to $10M
- SFR, 1-4, 5+ and commercial

Then the stabilized property moves into a 30-year DSCR loan sized on rent.

Underwrite the refinance before you buy. Use closed comps, real rents and a lease-up budget.

Where has your BRRRR math been off in the past?

#BRRRR #FixAndRent #RealEstateInvesting #PrivateLending #DSCRLoans

[Jordan Xavier - House Hacking Investment Coach @jxgcoach]

In house hacking, you learn to be a landlord, handle tenants, and manage a property WHILE you're still living there. That's real experience at low risk.

[Daniel Elie @RealtyDan05]

Learning Real Estate Investing | Day 3
Topic: VA Loan House Hacking

VA loans can finance 2–4 unit properties with 0% down.
Live in one unit and rent out the others.

The upside? Tenants help cover your mortgage.
The catch? You must use the property as your primary residence.

[Forensic Property Investor @REIforensics]

Worth knowing before you start the rehab. If the plan is to refi out, getting a tenant signed early keeps the refi from sitting.

[Harpoon Capital @HarpoonCapital]

🤔Q: Can I get a DSCR Loan without a tenant in place?
➡️A: For acquisitions, yes! Vacant properties are perfectly fine and actually the norm. Refinances are different: DSCR Lenders will typically require a lease to be signed and in place before closing a refinance on a vacant property, with only rare exceptions.
via @EdelmanLending

[Forensic Property Investor @REIforensics]

Boring is underrated. If you can't say where the rent goes after the note, taxes and repairs, the deal is too big for a first one.

[The Wealth Clock Podcast @TheWealthClock]

Unpopular opinion. Your first rental should be boring. A 2 family you understand beats a 200 unit deal you can't underwrite.

[Forensic Property Investor @REIforensics]

For a lot of first rentals it's the timeline more than the price. Every month waiting on permits or trades is a payment with no rent coming in.

[REDevguy1 @TheREDevGUY]

Real estate investors:

What's the biggest mistake you made on your first rental property?

Overpaying, bad tenants, underestimating renovations, poor financing, or something else?