All Forum Posts by: Campbell McCoy

Hey BP, so I am about to close on my first property. My plan was to do a BRRR but I made a fatal mistake. I somehow was thinking I could refinance and take on a separate loan on 80% of the equity I had built into the property. After calling a few banks it seems like my only and best option is to do a cash out refi with 80% LTV. I purchased the property for $200,000. My plan was to put about $80,000-$90,000 into it and bring the ARV up to $330,000. Where I went wrong was thinking I could pull out 80% of the $130,000 of equity which would be $104,000 allowing me to pay for the rehab and then some. With an 80% LTV refi I will only be able to get $264,000 out which will not cover the rehab. My two options as I see them are to try and flip the property, or try to keep the rehab under $64,000. Any advice would be greatly appreciated!

I am a new investor and in need of a hard money lender willing to take a chance on my first of what I presume to be many deals in the future. I've been listening to hours and hours of the bigger pockets podcasts every day for the past 6 months and have finally found an amazing off market deal. It's a $125,000 duplex outside of Athens. After reviewing Redfin and getting comps on the surrounding area, I've found that everything else appears to be selling for upwards of $250,000+ In that area. This house is in great condition just needs cosmetic work and some serious landscaping. With bigger pockets rent estimators along with my own research I am very confident I can get at least $900 a month per door and that's on the conservative side. My mortgage estimator puts me at about $600 a month. And after adding up Capital expenditures, Vacancy, Property tax, Insurance, and general maintenance I expect to be cash flowing a little over $200 a month the first year. I intend to rehab the property and expect the value to be at least $200,000 by the time I'm done which would give me more than enough wiggle room to pay back the loan plus an 8-10% interest rate within 6 months to a year after executing a cash out refinance and receiving 75% of the Property value. My local bank has agreed to give me a loan to value rate. I have sent a message to every hard money lender on Bigger pockets Networking tab and was wondering what other creative financing strategies I could pursue if I don't get a response. Worst case scenario I am planning on House hacking and getting an FHA loan but I would much rather rent both sides of the unit right away and not have to move that far away. I have $15,000 cash that I intended to use on the rehab buy would also consider using as a down payment for the the hard money lender if they were willing to fund the rehab. Your advice is greatly appreciated. Thanks BP Community!

I’ve been working in manufacturing for 2 years now and I’ve been listening to bigger pockets podcasts for the past 6 months all day everyday at work and I feel ready to make my first investment. My thinking is that getting a job as a contractor would allow me to get a very good idea for pricing the rehab of lower end properties so I can really assess deals well, and start networking and getting in contact with contractors in my area that can potentially give me good deals on renovations. Or even learning how to rehab those properties myself to save money. My question really is wether contracting is the best move or if I should explore other jobs that would benefit me more in the long run. If contracting is a good place to start is there anyone in Huntsville Alabama that knows of a good place to work where I can get trained in that field. Thanks bigger pockets!