All Forum Posts by: Roger S.

@Shawn Coverdell, 

We did just that, with the 100k+ we just got, we were able to put an all cash offer on another rental. This house had 14 offers in the first 24 hours, but our cash offer beat out a slightly higher offer that would have needed financing and the buyer knew the house wouldn't pass FHA. I'm going to have it leveled, do some minor remodeling and then pull all my cash out again.

We've had rentals now for 3 years, but I didn't think the BRRR strategy was for us until this year. We decided to give it a go, and since the biggest pain in the butt of a refi is all the paperwork, we decided to do 4 houses at once since the paperwork would be the same for 4 as for 1.

1st one.  A little 3 bedroom 1 bath, we paid 63k for  put 12.6k down, spent about 3k on rehab.  Appraised at 86k.  Borrowed 64.5k,  got 11k back in cash, almost our entire investment.

2nd one.  A nice 2 bedroom 1 bath we paid 46k for.  Put 9k down, put about 8k into it.  Appraised at 85k.  Borrowed 63k.  put 25k in our pockets.   That's all of our investment plus about 18k.

3rd one.  A 3 bedroom, 1 bath we paid 70k for and put about 5k into.  We put 14k down.  Appraised at 130k.  borrowed 97k  put 40k in our pockets, all of our initial investment plus about 23k.

Last one..  The first 2 homes we bought as rentals, we bought them as a package and only had one mortgage for the 2 of them.  We paid 86k for the 2 of them.  Did a lot of work to one.  We had 13k down and about 10k in rehab.  The one we refi'd appraised at 123k.  Borrowed 92.5k.  Paid off the note, put 26k in our pockets and the second house is now free and clear.

So, we got all of our money back, plus about 44k, and instead of 5 houses mortgaged, we only have 4, and another one we can do some financial maneuvers with in the future.

edit.. Almost forgot to mention, our payments went down by about 60 bucks a month.

@Christopher Ressa, sorry, I misread your figures.  

I was trying to do the same thing recently.  The rates and terms on a portfolio loan were terrible compared to doing 3 separate cashout refinances.    I'm in the middle of doing those now, the fees aren't bad, the interest rate is 5.49%   30 year fixed.  The portfolio loan was 8% for the same.

I doubt the increased cost is from the AC unit problems.   However, I have in the past helped on a utility bill increase caused by a system problem.   I had a unit that had a cracked hot water line under the house that no one noticed for quite a while.    Electric and water bills almost doubled, so I gave the tenant about 75% of the increase, in cash.

I'm trying to figure out how you can forgive the rent without it coming from your profit.

The only place we post our vacant rentals is on the local Facebook houses for rent groups.  We get more legitimate interest there than we can handle.  Craigslist is full of scammers.  Plus, with Facebook, we can do an immediate check on their pages to see if there are any red flags.

I'm guessing he spent all of his time in the minor leagues.

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I can make a loop and see all 10 of my houses and travel less than 2 miles.  LOL  All of ours are in the small town we live in.