All Forum Posts by: Bryan Strain

Welcome to BiggerPockets Bryan!

Hey Bryan- welcome to the community. Sounds to me like the BRRRR method could potentially be a great option for you and you REI goals. You said you've been reading up/listening to podcasts- have you seen the BRRRR book written by David Greene? Definitely worth a read if you're looking to scale.

@Bryan Strain is the plan to sell the single family home you are in now and use the proceeds to buy another single family home? I'm always a fan of utilizing equity you have in your home to buy rentals rather than or in addition to your own funds. Allows you to scale much quicker. Or depending on family/living situation sell the primary you are in now tax free since you've been there 2+ years and then use the FHA again on a 2-4 unit for very little out of pocket. Then the rest of the funds you can use to buy rentals outside of that.

@Bryan Strain u will not pay any tax since its your primary residence. Take that gain and apply it to another primary residence. try buying a 2 to 4 family that you can live in one and rent out the other units. I have some young investors who have taken my advice and have done this every 2 years and if you are smart perhaps you buy only in your name and the next one in your girlfriends name. There are ways around the 2 year thing but you need to be careful and make sure its done correctly.

 Need to factor commissions in as someone pointed out and also you are saving the taxes since it is a primary as another BP member pointed out. If you put $20K or $30K into it do you get an extra $50K out. I would run numbers on updates and where you should be on the sale of it after you do the updates is where you could be leaving money on the table for the next purchase and the rental (or maybe two rentals).

Hi Bryan, you will need to calculate in closing costs from both selling and buying your new properties, which will be several thousands when it's all said and done. During your sale, in PA, the seller can expect to pay 6% of the sales price in commissions, plus a likely brokerage fee to their agent, along with ~1 to 3% of the sales price in transfer tax, depending on the municipality the property sits in, and a few various fees to the title company. When purchasing your new home, again, expect to pay half of the transfer tax and fees owed to your new lender and/or mortgage broker, title agent, and any brokerage fee to your real estate agent's firm, and prepaid interest and escrows for yearly taxes. Some of the cost during your purchase can be rolled into your new mortgage, instead of fronting the cost at close, which can be worked out with your lender while shopping for a new rate.