All Forum Posts by: April Eilers

How is buy and hold going in this area? For those locals, is northeast Fort Myers any better than Lehigh or one in the same in terms of quality of tenants? 

Thanks for the input! I think I've heard that you need 2 years of rental history before you can start counting that as "income" that lenders will consider. Is this true? Also, what is considered a good dti ratio? Also a couple more questions: 

• What are typical interest rates/terms of a cash out refi?
• Is there a limit to the number of cash out refis one can do? In other words, could I buy first house in cash, refi that, buy second house with refied funds, refi that, and so on x 50 as long as each refi was for only 70-80% of each appraised property value or would I be cut off after a point? If there is a limit, what is the limit and/or what is it based on? 

Hi BP, we plan to buy a property in cash and want to consider Brrrr feasibility thereafter. If we were to do a cash out refinance of that property is approval of the refinance income dependent (on our jobs/rental income) or solely dependent on the value of the asset one is refinancing? Thanks!

Thank you @

Andrew Postell

Hi! I have a scenario that I think is a no-brainer, but want to get your advice to make sure I am not missing anything. I own a house in Northern Virginia (Annandale) and have 200k in equity. I'm moving out of the area and I was originally planning to keep the house and rent it out for approximately $2750/mo, which would net 7,800/year profit after deducting the 2100/mo mortgage. That said, we realized we could sell the house, walk away with the 200k in equity, use that to buy two 100k investment properties (deals valued at 125k) and theoretically rent them for 1% at 1250/mo. This strategy would net us approximately 30,000/year (less taxes/repairs) in profit since we wouldn't have to account for any mortgage payments. What are your thoughts about these options? Keep in mind that Amazon is scheduled to come to Arlington (the neighboring city) in the near future as well as the projected economic downturn. Do we sell the northern va property now so we have cash in hand to buy the investment properties when the economic downturn hits, hold and sell after Amazon comes, or keep long-term?

We are getting ready to start our brrrr portfolio! We just spoke with our lender, and walked him through the strategy. He said whoever developed/uses this strategy isn’t up to speed with the latest products out there, and that there are ways to do the same thing with no/little initial investment. Our lender’s recommendation was a product called home style renovation mortgage. What are your thoughts on this product? The initial investment required is unclear to us, and we are not sure if it is possible to build a portfolio in the same way as the brrrr strategy. Does anyone know whether whether homestyle renovation loans require downpayments? If so, I think this would be a reason brrrr is better in the long run for those that don’t have a large stash of cash?