All Forum Posts by: Andre Williams

@John Warren

Thank you, John for your advice!!

Hi I am looking for purchasing a single family home for investment. I realize that rates of mortgage loan is much worse for investment properties than for primary resident home. I plan to downpay 25% which can give the best rate for investment property. I am also considering to put more money using HELOC from my primary resident home on top of 25% downpayment because HELOC rate (3.6%) is better than mortgage rate (4.5%).

Do you think this is a good idea and right strategy to use?

I plan to buy a single family house with pretty good deal but I have a concern. There are no houses within the next 2 lot areas in both right and left directions (a total of 4 lot areas). There are town homes across the road. Should I concern about this? I think it may be difficult to rent out without neighbors...

@Jaysen Medhurst

Thank you. What’s GSR?

Hi BP,

I am analyzing a deal but I am not sure how much% of monthly rent I should consider as cap ex and repair. Any conservative number? Some says 5%, the other says 10%. I may put 8%. Does this sound reasonable?

I consider these as cost

P&I

HOA

Insurance

Tax

Cap ex

Repair

PM

Closing cost

Rehab

Am I missing anything?

Ok, I understand the concept of BRRRR. One of the major advantages of BRRRR is velocity of increasing assets. This is where I don't understand. If I own multiple properties and refinance from each and put the money to buy another property while accumulating positive cash flow from rental properties, I think I can increase the velocity as high as brrrr. What am I missing here or misunderstanding?

@James Black

If you've built up equity on the house, why don't you get loan over the house and buy other properties with that money? Similar with BRRRR?

@Andrew Syrios

Andrew, can you share some resources where I can find syndications? I honestly never thought about it.

@Jessica G.

Sure, I will really need to meet people and get to know them first

@John Corey

I totally agree with you. Slow start is what I wanted looking for 50-100K condos. The problem is many times properties at this price range need relatively more works to begin with than those with higher prices.