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Updated over 6 years ago,

User Stats

20
Posts
5
Votes
James Partsch Jr
Pro Member
  • North Tonawanda, NY
5
Votes |
20
Posts

Best way to invest 30k, BRRRR one property or multiple turn key?

James Partsch Jr
Pro Member
  • North Tonawanda, NY
Posted

My wife and I currently live in a home we purchased for $12,000 seven years ago.  We are located in the Buffalo/Niagara region of New York.  The home was zoned two family and we left it as such but have lived in it while we rehabbed and utilized as a full home.  We used hard money to rehab with a mix of our own money and refinanced once all repairs were done.  

The home was assessed at 70k upon completion, seven years ago, and comps in the area are now between 80 and 90.  We will be closing on a single family, for us, in August.  As soon as we close and move we plan to rent the two family out for approximately 1400 per month (combined) which allows us to cashflow 1,000 with the 15-year mortgage payment.  The cash flow is only taking mortgage, ins, and taxes into consideration.  We plan to put all cash flow in an account with a goal to reinvest prior to the money being considered income so we need to make sure we are reinvesting it relatively quickly (outside 30% for repairs and incidentals).  

We are looking to leverage the equity as soon as we are fully moved and this place is fully occupied (goal is by October 1st to be occupied).  I have found a lender willing to lend 85% of the assessed value minus what is owed (30k).  This leaves us 29,500 to invest (at 70k assessment).  We have personal money saved for incidentals and cushion in case of something unexpected hitting while we build up savings from cash flow for cap-ex. 

Now that I am done with the long-winded intro, on to the question. Would we be best to focus on a single BRRRR with a target to refi by jan/feb 19 or is there a potentially better strategy one may recommend to build out a stack and increase available capital to reinvest?

The longterm goal is buy and holds. We plan to focus on BRRRR's but are not opposed to turnkey or flips if the deal is right but it is not where our focus is. We truly believe our area is at a low end and has a ton of upside before we look to expand to other areas. Any help, direction, or reference material is greatly appreciated. I have read the book on rental property investing as well as other sources of information, but am always open to more knowledge. I value real-life experience just as much so please feel free to share.

  • James Partsch Jr
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