All Forum Posts by: Benjamin Pifer

I'm thinking of using a HELOC to fund most if not all of my first BRRRR deal. I own 100% equity in my home.

What was it like using HELOC for a BRRRR deal for those who have done it? Are there any problems with this tactic I should be aware of? Do banks allow you to pay off your HELOC with a cash out refi? Any early payoff penalties of the HELOC?

Thanks for any advice!

@Greg Dickerson thanks for the reply, Sir! I guess that's a good starting point for me to start understanding what the numbers will be for the cost of building. Newbie question: do I need to have a contractors license to build my own multifamily? I'm open to the idea of managing the project and hiring out sub-contractors if I am legally allowed to. Thanks!

I'm having trouble landing any good deals in my area. I've put in offers/bids but have been beat out every time. Properties are basically selling for more than what I would purchase them for for decent cash flow. I'm starting to wonder if I should try building my own multifamily instead of buying. I have a little bit of an advantage. My grandfather bought 14 acres of land about 15 years ago and had it divided up and zoned into multifamily and commercial zoning. He also put in infrastructure including paved entrances and all the water/plumbing for the land. He passed away before finishing developement and it now belongs to my father who has been open to the idea of basically giving me some of the land to build on. I have a decent chunk of cash from inheritance too. I'm starting to think it might be a good idea to just build there instead of buying something built. My main concern is how to figure out the cost of building so I can know if it'd be a good deal. It seems more difficult than just running the numbers on something already built. Any thoughts/ideas from anyone who has built their own multifamily? How did you figure out the costs for it? Thanks in advance!

@Anthony Wick solid advice.

@Thomas S. I didn't say I have no idea how it works. You assumed that. I said I have experience and good idea of how to run rental properties. I'm interested in people's ideas and their own experiences in buying/building. How they got started etc. Obviously I've had many good convos with my grandfather and he's given me good advice. But that doesn't mean his is the only way/best way. I like to hear other peoples thoughts and ideas who have experience. So I am studying/getting ideas.

Thanks for the replies. I've grown up around rental. I currently work for my grandfather as a property manager and also do maintenance on the units so I've learned a lot all around. So I have a good idea of what it takes. I feel confident to get started just wondering people's thoughts and ideas. I want to be smart and maximize what I get/do to have the most success possible.

If you inherited 180K, how would you start your REI? Would you consider new contruction?

@Mike Dorneman did you finance the rehab with your own cash?

There's a cash only house for sale for 14K. I've looked at it and it's in a good neighborhood. It's not livable and needs a total rehab. Assuming the numbers made sense/a good deal, what would be the best way to fund the rehab costs if I buy it? Thanks!

I'm looking at a 4plex to buy and owner occupy using the FHA loan. It's in a good part of town and is in really good shape already. I would like to purchase it though and make big improvements to it to make it more attractive and be able to raise the already below market rents on it. I was just wondering what everyone's thoughts were and experience has been doing this? How big of improvements did you do? Did the property appraise for much higher? etc. Thanks!