All Forum Posts by: Blake Ramsey

 I knew that people would look at this as me trying to find a way out of college. I am all for finishing college as long as it gets me where I need to go in the most efficient way possible. I just had serious doubts that it was the right way to go, but after reading all these comments it's clear that it is.

Other than the many hours each week I've spent on learning all I can about real estate, the only kind of investing I've done is into my savings account to get a down payment. I am living at home and am going to school for free right now so am able to save most of my income. My first investment goal is to house hack a sfr with my cousins.

 I actually have family members who are well off financially who would be willing to cosign for a mortgage. I have been busting my *** to save money so my plan was not to just use their money, but to use their financial reputation to get in my foot in the door for a first mortgage for a house hack.

Hey everyone, my name is Blake and I'm a mechanical engineering major at a community college in Springfield, Mo. I have been diving into real estate for a little over a year and I am now confident it is what I want to center my career around. I am currently working on my associate's at OTC and had plans to continue my education and get a bachelor's at either MSU or MS&T, but I am now considering not going down that route. I think the opportunity cost is too great and my time spent on school work can be better put to use to further my real estate career. I know that going to college and doing real estate are not mutually exclusive and often go hand in hand, but I am not so certain that is the path I want to take. I'm not doing this because I don't like school or because I think that real estate is the "easy way out", but because I believe that my current goals will be better met if I were to commit full-time to accomplishing them.

Just so I can challenge myself and test my own commitment to this decision, I have set some goals for myself to accomplish before I will allow myself to leave school. They are to: 1) develop relationships with 3-5 investors in the area that I can learn from, and 2) save up $7500 to put towards a down payment for my first sfr house hack.

I'm not posting this fishing for responses that justify my decision, but rather to get perspectives from any of you who might have had similar experiences or have their own opinions on my situation that can help me see things differently.

If there are any investors in the 417 who happen to come across this, I'd love to get the opportunity to connect with you!

@Nicholas L. That’s when I’d need to look at hard/private money right? I know that many good brrrr deals are in too bad of shape for conventional banks to lend for.

@Nate Sanow  I’ll look into some of those numbers. Thanks for all the help!

@Nate Sanow Yes, for the sake of simplicity I just left out those additional fees, closing costs, etc. All the responses have been saying my cash out would be closer to $35k, do those fees I left out generally add up to ~$5k in most deals?

@Ricardo R. Thanks Ricardo for such an in depth response. It gets me excited learning more about this stuff so you guys are a big help! I’m haven’t actually invested in any properties yet, I’m a college student and am trying to learn as much as I can now so when the time comes I can invest confidently. 

When it comes to BRRRRs, what kind of cashflow are you hoping to get out of each deal? I know Brandon Turner says that for sfr his goal is $200/mo and multifam is $100/mo/unit. 

Correct me if I misunderstood but the main goal of BRRRR isn't maximizing cashflow, but maximizing volume, leverage, and equity correct. If thats true I'd imagine that the target cashflow would be lower than normal buy and hold properties.

@Tyler Haanen While we’re on the topic of appreciation/depreciation, its kind of up in the air as to what the future of the market is going to look like (not that we ever know, but now in particular). So if if I’m BRRRRing, it only really effects me if the market drops significantly between me buying the house and refinancing it correct?

@Kenneth Garrett Thanks for taking the time to give some insight Kenneth. My main goal for this question was to get an answer on how much equity I had in the deal after the refi but @Nate Sanow helped me out with that. I understand that I left out some costs that would be included in an actual deal but for my question they weren’t really necessary to include.

When you say you cashout 80-90% and have all your money back in 12-18 months, do you mean you recoup the rest of the 10-20% left in the deal by the cashflow of the property? After this point your cocr would be unlimited correct?

@Nate Sanow Hey Nate, thanks a lot for helping me out with this. So in this senario my equity after the refi would be arv - loan value = $40k?