All Forum Posts by: Steven Hasslinger

I am in Cottonwood AZ with the same idea.  I think going Yavapai county or Coconino county in ypur case vs city limits may open up more options.

I will start looking into county codes and GIS maps to see how far Utility services extend.

Off grid and alternative building is another interest.  Finding creative solutions for water, septic, electric.  

My vision is a compound of 4 smaller dwellings with a central area for community and some shared access to laundry/patio/storage to keep costs down.

Thanks.  I am focused on my criteria:  

Traditional 20% bank loan MLS deal:
$250 net cashflow per month, >= 0.8% price to rent ratio, safe neighborhood a property manager recommends. If I can find the right contractor then same as above but all in 75% of ARV for a BRRR.

Talking to the local professionals and looking forward to narrowing down neighborhoods!

Thanks for your feedback. It does seem that finding the relationships and vetting that they are trustworthy are key. It has definitely taken me a lot of networking, local REIA's and discussions to find that locally as well. Bigger pockets does seem like a great way to start the relationship making process.

Hello BP!

I am seeking an initial BRRR investment in Chattanooga and want to build the team to get started. Feedback is welcomed:)

My criteria:

• Safe neighborhood, good schools.  Comfortable walking after dark. (C+/B- or >)
• Total investment (purchase and repairs) max of 75% of property's ARV or put simply 25% equity upon rehab ending.
• 1% rule upon renting (e.g. all in purchase cost 100K then rent=$1000/month).
• $250 cash flow per door/month upon refinance

My Budget:

• $55K cash
• $22K home equity line of credit (on another rental).  Applying for increase to $45K.
• Lines of credit at HD or Lowes for materials.

Strategies:

1)   Cash Purchase 

Example: Purchase 75K and finance 30K rehab with Lowes, ongoing savings of 4K per month and credit lines/cards =$3K holding costs

All in $108K. 6 month rehab and 6 months rental seasoning. ARV $145K allowing $100K cashout at 70% LTV.

Leave $8K in the deal, rent at $1350 allowing me to cashflow $300 after refinance with ~$45K equity.

2) Hardmoney purchase and rehab allowing for a better product in a better neighborhood. Assume 2.5 points, 12% interest, 25% down as this is my initial BRRR and hardmoney loan.

Example: 150K purchase + $30K rehab=$180K.  Loan of $135K (75%).  Put in $45K cash + $12K holding costs ($1800 x6 mos while rehabbing and $150x6 months while rented) =$57K all in.

ARV $250K allowing $175K cashout at 70% LTV. Rent at $1700 monthly allowing me to cashflow $300 per month after refi. Leave $17K in the deal with ~$75K equity.

Goal: Repeat it every 9-12 months over the next 5 years.

How realistic are my thoughts on this? I look forward to establishing a team and learning from your feedback.  Thanks!