Here's where I am on myrental property journey

Here's where I am on myrental property journey

Dallas, TX · Member since 2014 · 650 posts · 53 votes

I have acquired 2 SFH

Both cash flow at least 10% cash on cash roi 

1 loan at 3.75. Another 4.125. Both 30 year

Each one required about $35,000 due at closing (including closing costs) for 25% down

Put about $5,000 into each

What should I be doing different?

How do I reduce down payment to reduce up front costs?

0Reply
11 views

Most Popular Reply

Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
9y
Originally posted by @Steve S.:

Wouldn't that cost about $5,000 to get to that money?

 Yes!  Maybe a bit less, but yes.

The refi till you die folks never seem to mention it costs them 40% of the cash they get out to get it out.  "I'm pulling out $10k to fund my next DP.  This really works!"  Too bad it costed $4k and a ton of pain and suffering to get the $10k.

Save and grow organically.  Build true wealth for yourself, not the bank!

See this reply in the discussion

5 Replies

Jump to latestLatest
  • Member since 2016 · 161 posts · 31 votes
    9y

    @Steve S.

    You seem to be off to a great start. Have you considered doing a cash out refi?

    I think Brandon coined the term BRRRR. I believe it stands for Buy, Rent, Rehab, Refi, Repeat. If you can take the equity out to reinvest in your next property, you don't have your cash locked in on a single property. At least this is may understanding.

  • Dallas, TX · Member since 2014 · 650 posts · 53 votes
    9y

    Wouldn't that cost about $5,000 to get to that money?

  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    9y
    Originally posted by @Steve S.:

    Wouldn't that cost about $5,000 to get to that money?

     Yes!  Maybe a bit less, but yes.

    The refi till you die folks never seem to mention it costs them 40% of the cash they get out to get it out.  "I'm pulling out $10k to fund my next DP.  This really works!"  Too bad it costed $4k and a ton of pain and suffering to get the $10k.

    Save and grow organically.  Build true wealth for yourself, not the bank!

  • Dallas, TX · Member since 2014 · 650 posts · 53 votes
    9y

    I would appreciate any other thoughts from the community on my approach so far. Am I doing anything obviously wrong or inefficiently?

  • Developer · Cleveland / Akron, OH · Member since 2008 · 922 posts · 399 votes
    9y
    Steve S. How do you reduce the downpayment to decrease upfront costs? There are two answers that immediately come to mind, either call many different lenders until you find one that will only require 20% down on an investment property or partner with an equity partner to decrease your cash required.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.