All Forum Posts by: Cel Arrington

hey BP! 

I had a quick question about what my expectation should be around a cash out refi for my investment property.  A lender I've worked with in the past for primary residence is quoting me for something like 6.5k to cash out refi on a property worth ~90k, and that seems extremely high.  What should my expectation be?  What type of lender should I be talking to in order to get a better rate than that?  

Thanks!

Christiansburg is a solid place to start, in my opinion.  You still get the benefit of a major university, and there is a lot of newer growth from population spillover from Blacksburg.  Blacksburg is pretty landlocked, so prices have climbed significantly.  Of course if you can get in there, it's been pretty rock solid for decades.

Totally agree with Taylor - BP books are an excellent starting point.  the ultimate beginners guide answers a lot of the questions it sounds like you have. From there, you can read more specialized books based on what you think you are interested in. 

@Alyssa Perez Leal 

In terms of how I'm getting started: I am using private money to BRRRR, paying back with the refi and covering the difference myself if any. Currently SFH, specializing in section 8 right now. By a combination of luck and conscious decisions, it has proven to be a strong position to be in during COVID.

Welcome, Kyle! I'm a REI in Roanoke with out too much of a head start on you. Where do you plan on investing? If Roanoke, let me know if there's anything I can do to help.

@Jason Davis Hey man!  I've been hawking the SE area the last few months and just bought/rehabbed my first SE property.  As @Cody McCraw said it's pretty street by street, and very obvious.  Overall from my perspective it's going to come down to being really diligent about screening tenants properly.  

I love seeing Roanoke represented on BP!  

Wow, I can't believe it's been a year since this post!  Update (probably just for myself, but it feels good): 

I didn't end up getting this property. When I didn't, I got cold feet with the cash I had and dumped it into a Roth IRA. I regretted that instantly. While I saved up again to be in position to buy, I read and listened to probably 1000 hours worth of info the next few months.

Nov 2019 I closed on my first BRRRR deal using private money. Rehab completed on budget, getting a tenant in it now. Couldn't have done it without this community and resources.

2020 Goal: 2 more BRRRR deals.

Hey BP community.  I spent the holidays cramming real estate books, including multiple BP published books.  I spent the better part of the last 2 weeks analyzing deals, and just made my first offer tonight.  I was hoping to get a few eyeballs on it to point out any obvious mistakes I might have made with the analysis, mostly for the learning experience.  Details:

• House
  • 59,900 asking
  • 53,500 offered, seller pays 5k closing costs
  • 20% down (10.7), 4k in repairs, so 14.7 cash to close
  • Tax assessed at 73k
• Income:
  • I know this house rented at 950 previously.  I have insight into previous owner, so fairly lucky on that front.  It was section 8. 
• Expenses: Total $716.11
  • mortgage 240
  • taxes 75
  • insurance 70
  • vacancy 40
  • repairs 75
  • CapEx 141.22
  • property management 75 (doing it myself, just future proofing)

My goal was to find a property that provided $200/mo cashflow and at least 10% CoCROI. I'd be happy to provide more details on how I came up with the CapEx numbers, but I was pretty thorough on all the big ticket stuff and what the costs are for this house in my area (father in law is a contractor), so I'm fairly confident in that one.

Any tips for improving this?  Warnings?  Awards?  

Thanks!