All Forum Posts by: Cameron Mitchell

@Alon Attias

I’m looking to do my first brrrr here soon.

From my understand of rentals you want to be saving a % for capital expenditure, vacancy, and repairs. How is this done if the numbers are so tight/breaking even? Aren't you even worried about the time it'll take in between renters or the property needing repairs? Or even managing fee? Do you manage the rentals on your own or have someone do them for you? I own two rentals and made sure before purchasing that my ROI was still good after saving 25% of the rent and 10% for management.

@Ash Hegde

So are you not as strict with your numbers then? I like you be around a 8% ROI or cash flow a certain amount. Do you loosen those numbers up if the market is tough?

@Ash Hegde

Yes that does make sense. Maybe I was talking to the wrong lender. He was explaining to me that when I refinance I’d need the 20% liquid.

He was explained to me that DSCR loans are about 1-1.5% more than conventional loans. How do investors get by with such high interest rates right now?

@Ash Hegde

Thank you for the advice! My issue is I don't understand the refinance part. As my understanding using a DSCR loan I still need %20 down. How am I able to use the equity I pushed onto the property for the refinance?

Hello BP,

I am new to investing in real estate. I have little experience for I have two duplex’s.

I am looking at moving away from buying houses the conventional way and want to do a brrrr for my next project. I believe I found a good hard money lender. They are offering to cover the whole day. It is 13% interest only for the price of the house and rehab. They also have a 4% fee of the total loan. They explained that’s how the make there money.

Where I am lost is how to refinance. From my research a DSCR loan would require 20-25% down so I would still need capital for that. I also just figured out you need to own the property for 6-12 months. How do people work around this? What other loans are out there that I am able to refinance out of the hard money loan?

Thanks,

Cam

@Greg M. @Linda S.

Thank you both for the advice! I bought this house 9 months ago and it has been a disaster from the beginning but I have learned a lot from the house. I have been on this journey to start my own rental business alone and it has been stressful. 

I do have a couple Questions about your comments if you have time.

1. It is a duplex, should I call it a house still or an apartment?

2. I have already put a lot of money into this house more than I should have, I have created a list of repairs but how extensive should I go on making it look perfect? I agree the garages Insulation needs to be removed, Curtains need to be replaced, door needs to be replaced, But where should I draw the line when it becomes to much money/time? 

3. How could I replace that vanity for a couple $100s?

4. Any other tips on marketing?

The Tips I have received for the marketing have been awesome! thanks everyone, but now I am worried this property isn't close to rent ready. How do you tell when the property has been fixed up enough and is rent ready? What are things that you look for to tell the property isn't rent ready? 

@Michael Swan

Awesome! I appreciate the advice and the tip on how to automate things. I’m going to get set up

on Facebook. Im assuming you have your owner Facebook for real estate?

@Colleen F.

St. Cloud MN is the area. I have it listed for $1,300 a month just a lot of viewing and little applications. I have no idea why they didn’t apply. What’s a good way to figure that out? Just assuming the property wasn’t what they were looking for.

@Bruce Woodruff

Thank you

Hello BP,

I am having difficulties renting out my property in the winter. I have had two applications. It is a couple, one has a good credit, almost hits the income required, good credit score. Her Boyfriend isn't the best candidate. Has the income, credit is 450, past eviction, and DWI's. Not sure if I should approve them for the winter to get some cash flow or keep trying to get different people. The home has been on the market for about 20+ days now. Only two applications but a lot of interests. Any advice helps, Thanks!