****Experienced investors....**** Is this a good strategy?

[Chris B.]

Hi all,

Excited... This is my first BP post. :) I am under contract on 2nd BRRRR home. Closing June 16th.

Purchase price 60000

Rehab costs estimate 30000

Taxes 6000 per year

Insurance 600 year

Rent for 1200 a month.

Paying for it with cash with HELOC. Plan to refinance after 6 months.

Did similar with my first investment house. Getting 1000 a month and all in at 80k (taxes $4400).

Am not seeing a lot of money coming back, but am hopeful this will pay off in the long run? Is this a good strategy? Thanks for any positive feedback/ constructive criticism...

Adv"thanks"ance

Chris

[Bradford Myatt]

Glad to see investing in NY is not the only place our margins are getting cut by high taxes.  Determining whether or not this strategy will work or not depends on your goals.  If you are looking for high cash flow this might be tough to accomplish with these numbers.

However, these numbers remind me of a house I have and the strategy I'm using.  My strategy focuses on quick debt paydown in order to refinance in a shorter time period.  The monthly cash flow isn't huge, but my goal for this property isn't huge income.  

Like so many other responses, so many of your questions can be answered by reviewing your goals. Clearly define what your goals are and you will have an easier time answering your own questions.

Hope this helps.  Good luck!