What would you do? BRRRR

[Josh Stevens]

Hey there BP!

This is my first post. I would love to get some solid feedback from my fellow investors. If you have a few minutes, drop a comment and let me know what you would do.

My portfolio lender recently sent me an off market deal for about 14 single family homes from one seller. I am interested in buying all 14 homes, but I am struggling with what strategy to use. I am a big believer in BRRRR and have had great success with this strategy. My goal the past year has been to get 95-98% back on all cashout refis. However, all 14 of these homes are in good shape and do not have much value add at all.

The Cashflow is very appealing at the price he is willing to sell them at and they are all well done rehabs. The easiest route would be to put 20% down and call it day. Unfortunately, that would kill my purchasing power and reduce the efficiency of my scaling. I don’t believe that to be a feasible option.

The portfolio lender currently has all 14 homes financed through his branch and has a good idea of the market value of them. His goal is to keep these properties on his books, but 20 percent down is just too steep for my strategy on this many homes even with a decent ROI. If I were to buy all in cash, I may be able to get 85% back in the cashout, since the homes have appreciated since the last evaluation when the seller bought them 4-5 years ago, but that is still a high risk for not much reward. I really don't want to skip out on this deal, but I just can't seem to think of a solid solution. Any suggestions or ideas would be appreciated. Thank you!