All Forum Posts by: Asa Ifill

@Alexander Felice

Alexander, thanks for your reply!

I’m currently renting an apartment now and do not trash the place and am never late on rent.

I know screening tenants is a big process in the BRRRR method and tenants play a big role in this process if you want it to be successful.

I do not want to give up on this investment that could possibly change my life. Thanks for the input!

@Carmen Pellegrino

Carmen, thanks for the reply!

First of all good luck with your first BRRRR property!

I have been considering trying the BRRRR method but am having a hard time finding a private lender that won't kill me in interest costs and a financing loan that with pay for the home + rehab.

How did you start with finding the funds for your first property?

Do you know any lenders that will give you the loan for the property + rehab?

@John Warren

Thanks for the reply John!

The key thing you said was “when”. “When” will I know if the tenant is going to destroy my property or put me in jeopardy of losing money? I guess there is always risk and fear into investments.

I know I will have to get a great area that is looking good and has good comps around it. So I guess this all just boils down to how much homework are you willing to do on a good enough property for the BRRRR method to be successful.

@Brent Paul

Brent, thanks for the reply!

I know screening tenants takes a big role in this method so it can actually work and be successful!

I guess you’re right, my buddy didn’t do a good job at screening his tenants, that’s why he was leading me astray.

I think it is true that you should have X amount of dollars saved up in case you do get a bad tenant and have to do some repairs - maybe take out more percentage from your cash flow each month for repairs?

Also, I am letting my friend talk me out of this and I haven’t even had my shot at it yet to see if I can do better.. maybe he is just looking out for me in the long run.

I'm currently working on strengthening my core 4 and reading BRRRR. I also need to strengthen my deal analysis.

Thanks for keeping me motivated!

Hello BP Team!

I'm a newly REI looking for all the criticism I can get! Please help me change my mind about this.

I have been reading/watching a lot of content on the BRRRR method. I've recently bought the BRRRR book by David and can't seem to put it down!

I've really been considering getting my feet wet using the BRRRR method because it seems like you're getting the best outcome with your investment. (EX: Gaining equity through the deal, cash flow when renting, and also a cash out refinance up to 75-80% to use that money on another investment, if you did the BRRRR method correctly.)

I couldn't seem to find a flaw in the BRRRR method until I reached out to a friend who has been in real estate investing for quite some time.

He has lead me astray from the BRRRR method by saying "tenants trash the place". He then explained that tenants beat the place up before they leave so you'll always have to pay money into the rental property which eventually takes away from your cash flow...

He explained to me that buying a property for less than market value and rehabbing it then selling it would be better than having a tenant live in the property... Then I asked, WHERE’S THE PASSIVE INCOME!?

Can anyone who has completed a successful BRRRR property put me back in the right mindset and tell me how/why to continue with the BRRRR process if I'm putting this amount of trust in my tenants.

@Justin Seng

Justin, I’d like to talk more about this. Could I jump in your inbox?

@Son D.

I'm a newly REI and I've been listening to the audiobook of the BRRRR method and thought this was the best investment idea yet! Your question has lead me astray because the comments were saying this method actually loses cash flow and tends to put you in lots of debt at the end of the day if you don't have tenants paying down your refinance mortgage.

Asking a question for me: Cant you BRRRR the first property and get a good refinance out of it ($50k) and use that for another property and refinance that with a 30yr loan and have 2 cash flows now, but also have tenants paying down your 30 year mortgages?

The BRRRR method seems to be great when you have tenants consistently.

Criticism please!!

@Lien Vuong

I'm a newly REI and I've been listening to the audiobook of the BRRRR method and thought this was the best investment idea yet! Your question has lead me astray because the comments were saying this method actually loses cash flow and tends to put you in lots of debt at the end of the day if you don't have tenants paying down your refinance mortgage.

Asking a question for me: Cant you BRRRR the first property and get a good refinance out of it ($50k) and use that for another property and refinance that with a 30yr loan and have 2 cash flows now, but also have tenants paying down your 30 year mortgages?

The BRRRR method seems to be great when you have tenants consistently.

Criticism please!!

@Russell Brazil

I'm a newly REI and I've been listening to the audiobook of the BRRRR method and thought this was the best investment idea yet! Your question has lead me astray because the comments were saying this method actually loses cash flow and tends to put you in lots of debt at the end of the day if you don't have tenants paying down your refinance mortgage.

Asking a question for me: Cant you BRRRR the first property and get a good refinance out of it ($50k) and use that for another property and refinance that with a 30yr loan and have 2 cash flows now, but also have tenants paying down your 30 year mortgages?

The BRRRR method seems to be great when you have tenants consistently.

Criticism please!!

@Monica Evans

Great question and post Monica!

I'm a newly REI and I've been listening to the audiobook of the BRRRR method and thought this was the best investment idea yet! Your question has lead me astray because the comments were saying this method actually loses cash flow and tends to put you in lots of debt at the end of the day if you don't have tenants paying down your refinance mortgage.

Asking a question for me: Cant you BRRRR the first property and get a good refinance out of it ($50k) and use that for another property and refinance that with a 30yr loan and have 2 cash flows now, but also have tenants paying down your 30 year mortgages?

The BRRRR method seems to be great when you have tenants consistently.

Criticism please!!