Looking to Buy 1st 4plex/ Quadplex or BRRRR property

[Jason S Martinez]

Hey guys i am about to put my 1st flip on the market for sale. After it has sold i am hoping to purchase my 1st 4plex/quadplex, or BRRRR a single family home. Any advice or tips would be greatly appreciated. looking to connect with investors, flippers, wholesalers or anyone that can help guide me in the right direction.! I am located 20 Mins from Portland Oregon so if you are local hit me up! if not i would still appreciate any tips or advice!

[Kevin Romines]

Some of the tools needed to play in the fix n flip or BRRRR arena's is the initial pot of cash needed for down payments and closing costs. HELOCS can be used as part of this strategy. I instruct my buyers to always ask the seller to pay their closing costs if they are not in a competitive situation, such as a off market deal. This will lessen the cash out of pocket. However if they are in a competitive situation (in most cases, they are) I tell them to present as clean an offer as possible, meaning don't ask for seller concessions and a fast closing.

Also, the time frame to close on a transaction will help them gain a competitive advantage. Meaning, if they can close in 3-7 days, and the other offers are coming in at a 30-45 day close, they gain an advantage at that point. To do that, you will typically use Hard Money. 

You make your money when you buy right. You should always calculate that a refinance at 75% of the ARV will still get your down payment and closing costs back out of the deal. If you can buy at a deep enough discount to do that on every deal, you will then, always get the cash you put in, back out within 6 months of being on title. There are portfolio loans that will also go up to 85%, so you should be able to get you cash back out of it, some of these loans only require 3 months on title.

The portfolio loans are higher interest rates than a Fannie / Freddie loan, but you can buy the rate down, and so long as you are still cash flowing an acceptable amount, you can choose to go that route. 

I have BRRRR clients that do this all the time. Flipper's pay way to much in taxes, you can avoid this by using the BRRRR method, and build your monthly cash flow wealth.

I hope this helps?