All Forum Posts by: Brian Raike

Jasper, Pat, and Alecia,

Thank you so much for your response and advice.

we are moving forward with it.

I truly appreciate you taking the time to respond!

thanks again!

Brian 

BP Community,

I’m hoping to get some community advice on a deal set up.

Background: my partner and I have owned a rental property for about five years. We’ve always had the intention of cash out refinancing into another property once the time was right.  Right now we have the equity to do it. We both work W2 jobs and don’t use the income from these investments. Goal is extra cash flow in retirement for financial freedom.

Dilemma: the cash flow from the property right now is roughly $1300 per month.  Once we refi, cash flow for both properties combined will be about $1400.  This is due to the  increase in mortgage rates and house prices.

Pros/cons as I see it:

Pros: two appreciating assets versus one; as rents rise, we’ll make more net income.

cons: less cash flow, double capex, double maintenance.

Anyone mind letting me know your thoughts?

thanks!

Brian

For the military family that wants to live in a beautiful home near Camp Lejeune while your tenants drastically reduce your monthly mortgage payment.  Located in Hubert, 5 minutes from 172 gate. 

Main house consists of four bedrooms and three full bathrooms. The large den upstairs is currently used as a TV room and play room for the kids. Screened porch and large fenced in back yard with a shed. New floors downstairs, new central air, new dishwasher and microwave, cabinets freshly painted, and the entire second floor newly painted.

Separate structure includes a two car garage and a two bedroom/1 bath apartment with a bonus room. Newly painted and well cared for. Tenants currently pay $1250 per month.

Plenty of parking in the driveway for residents, tenants, and even a boat!

https://www.militarybyowner.com/nc/homes-in-hubert/mbo150389...

@Robert DiMenna, sorry for the delay!  You are absolutely correct.  While I do think the “b” phase is the most checklist- intensive, This list is incomplete.  Have you found any other checklists that contain a solid “rrrr” list?  Thanks for your post.

@Miller McSwain thank you! I will definitely read it!

@David Robertson thank you for the reply! Agree- that is an initial estimate to run numbers before the team visits the property. That is for initial numbers to decide whether actually visiting and evaluating the property is worth it. Then, the contractor gives me an itemized estimate for all of the work. 

With that said, what would you use for an initial shwag to determine whether the property is worth going to look at?

Thanks again,

Brian

I just finished the BRRRR book by David Greene and I am developing a checklist/system for assessing a BRRRR deal. I would love some experienced BRRRR investor feedback!

Background: I am an out-of-state investor, investing back home. I own a couple properties there, but I've never done a BRRRR deal. I know the contractor, agent/manager (investment partner), and I have worked with the inspector multiple times.

A few notes/Questions: 

-Step 1: Any suggestions for additions for estimating ARV?

-Step 2: 1% rule properties usually cash-flow in this area (despite high taxes). That said, I'm using 1.1% to add an additional buffer for me to make mistakes on my first BRRRR.

-Step 3: Any suggestions on additions for rehab costs?

-Step 5: I'm going to do this first deal based on 95% ARV - another 5% buffer for me to make a mistake.

-Step 5: What categories should go into acquisition costs?

-Step 6: I am, at least at first, paying a a trusted inspector to go on the initial walk-through to tell me about the big structural/code issues.

Any feedback would be helpful.
Thank you,

Brian

Thank you @Ross Yeager! Great insight. You’re right- we are in weird times right now. Definitely need to keep that in mind.

Thank you @Whitney Hutten! Great suggestion. That definitely helps

Hello,
I am purchasing an investment property using the BRRRR method.
The hard money lender with whom I am working is including the rehab costs in the loan. I am having trouble figuring out how to do this in the BRRRR calculator. 

Here’s my dilemma:

When I input my estimated repair costs, I don’t see an option to include that as part of the loan.

Under the terms of this bridge loan, I am putting 20% toward the purchase price only. So, I am borrowing 80% of the purchase price and 100% of the rehab.

If I input that I’m paying 20% of the purchase price, the calculator will disregard the borrowed rehab costs and run numbers as if I’m only borrowing for the home purchase.

If I manually add the rehab costs and us the “Enter Loan Amount” feature, the calculator gives me a down payment surplus.

Any help you could provide would be appreciated.

Thanks,

Brian