All Forum Posts by: Calvin Raab

The way I look at it is if you get 8 hours of sleep there are 16 other hours you are awake. It doesn't matter the time span in which those 16 exist, it matters how you spend them. I wouldn't focus on trying to be an early riser if you find it is keeping you from being at your peak performance. Just focus on making your 16 hours awake as productive as possible. 

My answer for this was advise I found concerning the mindset towards real estate investing. I think it was on one of the Bigger Pockets podcast episodes where it was discussed how all real estate is is it is a numbers game. Once I saw real estate purely as a numbers game that made the whole process seem a lot simpler and understandable. 

You are correct that in your hypothetical example you will be right back to square one, but the fact that you have a property is very important and shouldn't be overlooked. You are in the exact same position you were in except you now have a cash flowing property. 

Now you can go back to the hard money lender and do the same thing again and then you will be in the same position except you now have two properties. Plus the more deals you do and the more experience you get the better loans you will be able to get from a HML. Eventually you may want to see if you can into private money since you can get much lower rates.

The key thing about growing your wealth with BRRRR is that last R. You are right that looking at BRRRR from the first deal things may not look to different but if you look at it after you have done a few then that's when the real wealth is built.

If I have learned anything from the real estate books I have it's that cashflow can be found in any city, however, it all depends on finding a good deal. A good deal can produce cashflow even in the cities where cashflow seems not existent. I do want to answer your question head on. As far as cashflow margins are concerned I have seen good cashflow throughout the sunbelt. The reason for this is that many individuals from the north are moving south and renting as a result. As far as specifics in the sunbelt, I wish I had the "perfect" city for cashflow but it ultimately comes down to finding a city that is growing year over year with population and jobs are heading there as well. Best of luck to you. 

Great question! I think it would be very helpful for you if you reached out to a few investors in Michigan. You can find them here on BP. They can give you some great advise about how to navigate buying in Michigan. Good luck and wishing you all the best. 

Hey Julio! Welcome to BP! I am 20 years old and one thing that we have in common is that we are both fired up about real estate. Feel free to pm me if you ever want to chat with a fellow newbie. Wishing you all the best and I am excited to see where your journey takes you! 

When I first looked at the numbers and the rules of thumb (50% rule and 2% rule) this property looks to check out. I then looked at cash on cash ROI and Monthly Cash flow and those two both seemed way to high. The reason is because you left a lot out in your expenses. The most glaring error in the calculation was $29.95 for Capex. You should be saving a lot more for that, (look at Capex (roof, concrete, etc) prices in your area to get the correct estimate here). Also you should be saving more for repairs. Be conservative with your numbers. And as Charles Mitchell mentioned you forgot to include Property management fees and vacancy. There are a few more expenses to add. Even with that said with an initial look at the numbers this looks to be a property to further investigate.

@Vince Chaudhuri

I certainly see your point. This seemed strange to me as well. I am a business student and all around me I see NDAs (nondisclosure agreements) being signed just so people can share their idea. 

In this thread a lot of people have shared reasons to why real estate won't "dry up" but I wanted to bring in a new idea. When someone shares all their information with another it's actually a win-win for both. By sharing your knowledge with someone else, you are actually helping yourself. Real Estate is all about who you know. If you help someone else succeed then you have just grown your network. And since you helped this individual so much if they have any deals you will probably be one of the first people they go to. 

This is one of the things I love about real estate. When you help someone else succeed you are by extension helping yourself. 

@Jack Butala

Thank you! Living in Southern California has been great as I learn more about Real Estate as well. There are so many knowledgeable people in the area, such as yourself, along with a large real estate market that offers many different types of real estate investing. It is great to have so much opportunity in my area. 

I am excited to continue to learn more about real estate, especially the market within Southern California. Thanks again for responding to my introduction post!

@Alex Shaughnessy

Thank you, great to be here! And yes economics has given me a great foundation for jumping into real estate. Its great to see concepts I have learned in the classroom being implemented in real life.