All Forum Posts by: Brian Leigh

Looking great. Personally, I would not paint the deck. I would power wash then apply a seal coat. 

Hi! I have come across a property that all of the numbers work out on. I am having trouble calculating the carry cost during the rehab process. I have $75k in cash and $45k LOC with which to BRRRR the property. The purchase price is $50k and the rehab is $65k. The LOC is at a 7% interest. the BP BRRRR Calculator will not account for a $50k cash purchase and cash/LOC use for the rehab portion. Anyone know how to calculate the rehab period carrying costs?

Congrats on putting in your first offer! Like others are mentioning, double check your insurance rates and PM rates. either way, best of luck! 

@Will C. - thanks! I will definitely let the lender know before refinancing cash out

@Jeff Copeland - Good to know questions when seeking financing. I always forget about the points charged upfront when figuring out the cost of the loan. 

@Jason D. - my income and credit are really good so I will try to pursue a LOC. Before I go forward with any deal, I will make sure I have a solid exit strategy already in place (i.e. refi, sell, don't refi for cashflow, etc.)

@Jake Stuttgen thanks for the quick reply! I’ll look into securing a line of credit then!

Hi BP! I am looking at a few BRRRRR properties that would cost $65-75k to acquire and rehab. If I only have $40k cash available, would you recommend a personal loan or line of credit from a local credit union? Or secure a HML for the remainder needed? Thanks!

Is HML similar to a personal loan? My local credit union has $35k unsecured personal loans or lines of credit. What about that route for the rehab portions?

Though I am new to REI, I would agree with @Ray Johnson and pull out the $315k. With the numbers you gave for your current property, you could essentially purchase 2 more just like it. Your monthly cash flow would be near $6,450 or $5,800 if you had someone manage them for you (10% PM fee). Also, you would still have at least $50,000 in reserves after you spent $55,000 in closing costs, updates, and other repairs. Just my thoughts on the idea. 

Congrats on getting the multi-family! 

Nice going! The bathroom looks great. What area of Manayunk?