All Forum Posts by: Angel Perez

Hello, I started investing in real estate on 2017 and I have 7 properties (1 4plex, and 6 SFH includding my primary residence, ). I have a full time w2 job plus managing all the properties and I am getting good cashflow. I am thinking about leaving my W2 job next year but my cashflow is still not enough to cover my expenses, but I have a good ammount of equity. I was thinking about an strategy of doing Cash Out Refinicing putting that money in the stock market (distributed in ETF and some "safer" stocks) to get around a 6% anual return (estimating that low because is the "standard" average, however my current stock portafolio has a cummulative return of 66% in the last 4 years). I would be taking out more money than the 6% anually from the stocks, but my thinking is that I could make that money last 4-5 years and after those years do another cash out refi and repeat the process. I would wait until I do the refinancing to quit my job, and for the next refinincing I would use DSCR loans.

Has anyone done that or is doing that? what are your thoughts and experience?

Thank you

@Andrew Postell thank you for your response. For Cash on cash return for the first year I came at 7.7% (Using a 15% expense ratio) Which is not the 12% that I have heard on Biggerpockets videos, but to be my first BRRRR I think I did OK. besides I learned a lot and is better than the 5-6% that I would get from the stock market.

Again thank you for your help and I hope the next one goes better :)

@Kris L.

Hi thank you for your response, would you be able to give more details? How did you run your numbers? thank you

@Andrew Postell

Hi Andrew,

1)It is a SFH.

2)I think I am confusing some terms here is a more detailed explanation about the private loan that I took to buy the house the Initial loan amount was 217.5K (166K purchase + 53K rehab loan + 12.5 closing costs - 14K down = 217.5K) so in that transaction I put 14K from my pocket. Then, the rehab cost was 78K where I used 53K from the rehab loan money plus 25K from my pocket. and now for the refinancing I got a loan for 217.5 K (which is the 75% of the appraisal value *I looked everywhere to get an 80% but no luck there*) and checking on the document I actually paid 8K on that closing.

3) the property is rented for 1.7K tenants pay all the services + lawn care + snow removal

4) My monthly payments that include PITI is $1,139. and that is for the refinance mortgage which is a 30y fixed at %3.625

***on side note this numbers are rounded up to make easier the math and so I can understand better :)

thank you for helping me

Hi Andrew, 

1)It is a SFH.

2)I think I am confusing some terms here is a more detail explanation about the private loan that I took to buy the house the Initial loan amount was 217.5K (166K purchase + 53K rehab loan + 12.5 closing costs - 14K down = 217.5K) so in that transaction I put 14K from my pocket. Then, the rehab cost was 78K where I used 53K from the rehab loan money plus 25K from my pocket. and now for the refinancing I got a loan for 217.5 K (which is the 75% of the appraisal value *I looked everywhere to get an 80% but no luck there*) and checking on the document I actually paid 8K on that closing.

3) the property is rented for 1.7K tenants pay all the services + lawn care + snow removal

4) My monthly payments that include PITI is $1,139. and that is for the refinance mortgage which is a 30y fixed at %3.625

***on side note this numbers are rounded up to make easier the math and so I can understand better :)

thank you for helping me

Hello I just finished my first BRRRR in spokane,WA here are the numbers:

purchase price166k with 14K closing costs, private money lender 9.5% interest only payments, including a rehab loan of 53K.

rehab costs (including 5 months of loan payments) 78K

rehab description: from 1/1 500sqft to 2/2 960 sqft

Appraisal came back 290K

refinance loan 217.5K at 3.625% with closing cost of 6.6K

Rented for 1.7 K

I am trying to find out if it was a good BRRRR or not. what is my Cash-on-Cash % and some other numbers as I have used different tools and they all say different numers