All Forum Posts by: Chris Mcdonald

@Rich Somers

I’ll join the next meeting, can you add me [email protected]

Live in PB and love chatting RE or brainstorming ideas. Hopefully you know more than me as I could use a mentor or mentee.

Currently own 3 doors all in one unit. B neighborhood A house.

In the process of cash out refi and planning next move.

Let’s grab a beer, coffee, or whatever. Cheers, Chris

@Steven Kleppin

Thanks. I'm actually just planning ahead for number 3 and 4. I have a pretty good chunk of cash from my first BRRR but afraid I'll start running low on cash in 12-18 months. Appreciate the feedback.

My partner is providing 50% of the down payment and signing with me. What is a good return for him?

I will be matching his 50% and we will also split the initial cost on the remodel. He will be totally hands off. I will remodel, manage, and refinance.

What terms should I approach him with to make the deal worth his time?

A few things I’m considering. Use his money to get the property up and running then buy him out. Keep him on and pay him a monthly percentage of profit.

If you were only providing cash what would you need to entice you to invest in a proven trusted friend who has a positive track record of rentals vs just investing in the stock market?

I have my first rental unit, cash flows $900 and about to pull out 100k in equity. My next purchase will be easy but my concern is - how do I get approved for number 3,4, and 5?

My thoughts- I have 100k to play with. Find a property that is $200k.

Purchase 200k, Valued at $250k

10% down - 20k

Rehab - 20k

Cash flowing $4-500

All in I will have spent around $50k rehabbing, down payment, and closing. The home will be valued at 250k and I’ll owe 180k. I’ll have 50k left in the bank. And only a little bit of equity in the new property.

What is the strategy to keeping the momentum rolling without running out of cash?

How will I get my next property?