Questions about refi

[Austin Tess]

Hello! I just bought my first investment property and I'm already looking out a year from now to start applying BRRR. I need some help wrapping my head around everything. Would it be to forward to ask if anyone would be willing to hop on a zoom call? I'm in the Milwaukee market. Any advice is always appreciated.

[John Clark]

Quote from @Austin Tess:

Hello! I just bought my first investment property and I'm already looking out a year from now to start applying BRRR. I need some help wrapping my head around everything. Would it be to forward to ask if anyone would be willing to hop on a zoom call? I'm in the Milwaukee market. Any advice is always appreciated.

I can’t imagine a more open-ended morass of a call. What aspects of BRRR do you want to discuss? You must know something about it already, since you got involved in it. 

Figure out what specific aspects of BRRR you want to discuss, and tell us what you have done to educate yourself on each of those specific aspects. Then tell us the nature of your remaining questions and concerns as to each remaining aspect, so people can have intelligent, focused, SHORT, conversations with you on each issue you present.

[John Jacobs]

@Austin Tess  @John Clark  Hi Austin,  Great question---I would happy to talk to you.  I private messaged you.  John

[Jake Baker]

@Austin Tess

Many lenders have a seasoning period (typically 6-12 months) before you can refinance. Be sure to ask about this when talking to lenders.

Keep detailed records of your expenses during the rehab. Lenders may ask for these when determining the post-renovation value.

The After Repair Value (ARV) is key to your refinance. Research comps in the Milwaukee area or connect with a local appraiser to estimate your property's potential value.

Depending on the rental income, you might explore DSCR loans for your refinance, as they rely on property performance more than personal income.

[Marcus Auerbach]

Quote from @Austin Tess:

Hello! I just bought my first investment property and I'm already looking out a year from now to start applying BRRR. I need some help wrapping my head around everything. Would it be to forward to ask if anyone would be willing to hop on a zoom call? I'm in the Milwaukee market. Any advice is always appreciated.

I have been BRRRR-ing in Milwaukee since 2008, if you look on my BP profile page you'll find a video. Would recommend you read a couple books about BRRRR, that will give you the basics and then feel free to reach out.

It remains a great strategy, but you have to manage your expectaions. In a text book case you'd buy a property for half of its ARV (after repair value) and then spend 25% of ARV on rehab and generate 25% equity. For example you'd buy a 200k property for 100k, spend 50k to rehab and then get it appraised for 200k and pull a loan for 150k. Now you have your 150k that you spent on purchase and rehab back and can do it again.

The reality is that with the super low inventory we have sellers don't have a reason to give you a 50% discount, so your numbers get squeezed and you will end up leaving cash in the deal. However, still one of the best plays out there. And 2025 might bring us a little more inventory too. 

[River Sava]

Hey Austin - What questions do you have specifically? Feel free to dm me, happy to chat with you. 

[Rebecca Knox]

Hi Austin,

I'm in Milwaukee too. 

I would check with Dennis Kahn at Homestead Mortgage or another popular mortgage broker here, Zach Starnes or there are several other lenders that can re-fi off appraised value much sooner than 1 yr. I've been hearing a lot of people re-fi'ing 3 mos after purchase.....at Brew City REI Club's last event, a lender said he could re-fi off appraised the day after purchase but you'd have to show that you did repairs.

[Logan Lambert]

Quote from @Austin Tess:

Hello! I just bought my first investment property and I'm already looking out a year from now to start applying BRRR. I need some help wrapping my head around everything. Would it be to forward to ask if anyone would be willing to hop on a zoom call? I'm in the Milwaukee market. Any advice is always appreciated.

 Hey Austin,

Would love to hop on a zoom call. What is your email address?

[Jonathan Small]

I love that the BP community is so open to giving advice and resources.  

i have done a few BRRRR projects. I recommend the book: "BRRRR: The BRRRR Rental Property Investment Strategy Made Simple" by David Greene and Clifford Ponder.

Message me if you have specific questions I can help with.