All Forum Posts by: Barry Cohen

Hi Mason,

Thanks for reaching out!  I look forward to attending your next meetup.  I will reach out to you this week so we can get in touch.

Thanks

Hey Robin,

Thanks for your reply.  I have run spreads to no end and if/when interest rates fall there is a point where OPM would make sense for this approach.  If I look at other more favorable markets (better cash flowing deals) then that could be a place to deploy OPM.

I just completed a new build 3/2, manufactured home for rent. Cost basis is 225K and comps place it at 325 to 350k. So at an LTV of 75% that is a cash out of 240K. Rents are anticipated to be 2250/mo so it fits nicely with the 1% rule. If I take 240k at 7% the monthly payments would be roughly 2150 plus expenses of around 300/mo. That has a (200) cash flow and is a no go for me. If I pull 200k at 5% payments would be roughly 1600 plus 300/mo expenses. (both loans assume 15yr fixed) That gives a positive cash flow of 350/mo. much better. So if I wanted to build a 10K monthly income I would need to own 30 of these accounting for turnover and vacancies. Conversely, if I don't BRRRR and add these properties 1 at a time skipping the last R then I could reach the same cashflow goal with 6 homes. The latter process would take more time (due to capital generation from other sources), cash investment and end up with much less capital appreciation over time but would also carry much less potential risk.

Help me get this concept clear in my head, should I BRRRR and build a portfolio of 30 homes or build these one at a time as my other sources of income allow. I will also look at finding rehab properties to add so they would not all be new builds. Our current market (Phoenix metro) is overpriced for flippers or fix to rent but I am on the lookout for a wholesaler that is finding deals that pencil in our market.

Thanks for your guidance,

Barry

Hello Everyone, I am excited to be here!

Learning - I am looking to learn what others have found to be successful real-estate investing strategies. I want to learn more about the BRRRR strategy, as a means to build a cashflow portfolio, by leveraging my experience a custom home builder and developer. I have seen amazing stories from many of you on BP and want to open my mind to new possibilities and strategies that are out of my comfort zone.

Teaching - I have been building residential and commercial properties for many (too many) years as well as land development and property subdividing. I love to learn and love to teach so if anyone needs help in this area I have you covered.  

Networking - They say that you need a superstar team to work with and grow your portfolio and help others to build theirs.  I have been more of a lone wolf over the years, so I need a push to open my self to networking and building that dream team!

I little bit about myself - I am a father of 5, a husband and a grandfather of 2 beautiful boys. This is my WHY - my purpose for wanting to build a lasting portfolio of exceptional cash flowing properties. I have been building residential and commercial properties for most of my career and and started my home building company in 2000. More recently (last 5 years) we have branched out into developing manufactured homes on acre lots and have enjoyed entering the affordable housing market. As for rental properties, I have only done one, held it for 5 years and bailed out, making decent capital appreciation but not much in rental income. Looking at today, I just completed my first 3/2 SFR (new build) that was just listed as a rental. I am learning a lot from BP on how to set up a property management system to begin learning the proper way to structure a rental property portfolio. So much to learn, so little time.

I am looking forward to meeting you, see you at the top!

Thank you,

Barry