All Forum Posts by: Brad Fallon

Hello BP, 

I am in the process of assessing several cities in my area in Maryland to figure out where I am likely to find the best ROI. Since I am not an agent, I do not have access to data on the MLS and am doing my best to find other ways to collect. A local Long & Foster in my area posted this document which shows a lot of the data that I am looking for including the number of units sold, the median sale price, and the months of supply figure. I would also like to find out the type of house that is selling and the property details including the number of bedrooms and baths. 

Is this data only available to obtain through the MLS? Or is there some other way for me to find this information and analyze multiple markets as I continue to search for deals?

Thank you!

Brad

Hello BP, 

I am a newbie looking to buy my first real estate investment in the high-cost area of Maryland between DC and Baltimore. On paper, the BRRRR strategy seems to make perfect sense for this type of area. I am considering obtaining an FHA 203K loan to rehab a property, live in it with roommates for some time, move out and rent the entire property, and then refinance to expand my cash flow.

However, online you will find videos such as this one of Brandon Turner or this by the Kwak Brothers which explains the significant risks and unsustainability of BRRRR. The major issue that these videos explain seems to assume that the investor is using a short-term, high-interest loan to fund the rehab. Since I am looking into using a 203K that I could (if I was unable to refinance) amortize over 30 years, do I clear this major concern?

I understand that there are other risks involved with underestimating rehab costs but these videos seem to focus in on the refinancing aspect. My questions for you all are:

• 1) What do you think of this strategy overall for a new investor in a high-cost market? 
• 2) Does using a 203K where there is still cash-flow even before refi cut down on the major risks?
• 3) Are there any other major risks that I am missing here?