Rate My RE Pipeline :)

[Andy Cheng]

Also posted on the New Member Introduction Forum :) 

Hi BP - I'm a 27yo investor based in Vancouver CA who is focused in BRRR in Oklahoma. I've done two deals so far and I'm trying to figure out how to maximize my cash and purchase as many rentals as I can. (Let's say I have 100K to start with)

Both houses are cash flow even or negative -100 to -200 if I factor in CapX etc. Starting both with long-term tenants since I know I can turn into MTR or STR to increase cash flow (Not a priority right now. Just in acquisition mode. I'll look to improve cash flow one property at a time, it's a beast I'll deal with later)

Would love your thoughts on how I can make my $$$ go far by reducing my total cash in after each deal! I've identified the following areas of the RE funnel that I can/will improve

1. Finding better lenders - I've been borrowing from hard money lenders and will be switching to private (family) money to cut costs by having a cash purchase (lower closing costs) and lower interest/lender fees.

2. Managing Renovations more cost-effectively - I've been extremely hands-off and just letting trusted GCs do the work. I could potentially save on GC cost by becoming the coordinator and connector.

3. Finding better deals (duh) - I know BRRR PP should be around 70% of ARV minus renovation costs. #1 and #2 are at 81.5% and 76% so I can improve here as well.

4. ????

5. ????

THE NUMBERS

House # 1

PP: 138K

Reno: 25K

Fees/Misc/Interests: 17K

Cash Out: 130K (ARV 200K)

Total Cash In: 50K

House #2

PP: 173K
Reno: 55K
Fees/Misc/Interests: 10K
Cash Out: 223K (ARV 300K)

Total Cash In: 30K