All Forum Posts by: Christine Durrance

I'm trying to figure out how to strategize financing for BRRRR's. As a rookie, I might sound like an idiot but let me try and break down my questions.

I want to use either an FHA loan or a 203 FHA to finance my first property. My plan is to live in it for 2 years and then rent. Once it's rehabbed, my understanding is that it needs 20% equity to be able to convert/refinance the loan from an FHA to conventional. If I convert it, does that mean that 20% equity has to stay in the property and only additional equity can be pulled out from refinance?

Are there other ways to free up being able to re-use an FHA besides refinancing with a conventional loan that I'm not thinking about?

Ultimately, I'm trying to think of strategies to use low money down options while I build more cash reserves. I hear a lot of people discuss using FHA for BRRRR's but I never feel like much is discussed about how to refinance to a conventional loan, the costs associated with that (cash flow depletion, closings), etc.

@Kenneth Garrett - thanks so much for this. I’ve heard a lot on the podcast about people who do solid rehab’s top to bottom to cut down on tenant calls and repairs. Always helps to hear others who manage properties and don’t have a significant amount of time they have to invest in it. As a newbie, I want to maximize my time more than pinching pennies to save on cash flow and so I’ve gone back and forth on managing properties myself. 

Looking for 2 different answers/feedback: 1) Do you think the cost of hiring a Property Management Company is worth it, if I don’t want to be a landlord? Why/why not?

2) Is there any reason I need to carry additional liability insurance if I sub out Property Management to a company? 

Hi everyone - I have been diving in deep with the podcast, BP books and resources over the last couple of months. The strategies that feel like the best fit for me to begin investing are small, multi-family BRRRR and maybe some SFH flips. I've heard about the value of direct marketing to find deals but I'm curious what other tangible ways you find deals in the market. I'm a huge fan of Brandon and his lessons on low to no money down because I don't have savings built up yet. So, where are the safe deals to explore beyond contacting landlords directly? Wholesale? Foreclosures? Are Foreclosures too risky? I live in the Tampa/St. Pete area and our market has been booming for years now. I'm struggling to find affordable deals but admittedly, understanding deal-finding is not my strong suit right now.