All Forum Posts by: Craig Anderson

In my opinion, if you have the room and funds to do an add-on for a room, then go for it. It increases value for rent and most likely a better appraisal. So, the $2500 and time now, should pay off down the road.  

Also, it's easier to do all the remodel now with no tenant, instead of trying to do it later when you have a tenant.

I'm new to BP and just saw this. I will be reading this today. thanks!

Hi investors! So, as I'm doing "mock" investing and trying to figure out the calculators, I'm seeing that the BRRRR and Rental Property calculators are giving me 2 very different results. I'm putting in the exact same numbers, but I'm getting a big variance on ROI and Cash Flow. Why is this?

Thanks for any help!

Great, thanks! 

Thank you. I'm learning whatever I can and trying to learn the process.  

I noticed that you are from Escondido, I'm in Murrieta.  Would you mind if I reached out to you for future advice? Possibly meet up sometime in the near future to chat?  Please let me know when you can.

Thanks! 

Great thanks. I have no money to recycle, I'm just using OPM in this example. However, I would have cash flow and an increase in net worth without using my money.

Thank you for that information and advice. I'll look at making sure to get a higher ARV so that I can pay ALL expenses and hopefully cash for myself. I just felt like the numbers in the example were off due to not taking into account other expenses and paying back loans of OPM. Then, I wasn't sure how to recycle money in that scenario since the money was borrowed. And, as you said, leaving some money in the deal isn't all that bad as long as it's cash flowing. Thank you for your help!

Thanks for the information and help.

Ok, so I'm really liking the BRRRR strategy. I've been listening to podcasts and reading daily on the subject. However, as a wanna be investor, who was little money to invest, I'm struggling with the refi concept. Here's my issue about how to repeat after the refi:

Example: If I found a house for $90K that includes purchase price, expenses and rehab ($30K). I borrow from a hard money lender $60K, and borrow $30K from a partner. Then, the ARV comes to $120K, I refi and get 75%, which means that I get back $90K, let's say in 6 months. However, I have to payback the hard money lender $60K plus 10% for $66K, and my partner $33K. Didn't I just lose $9K? Even though I'm getting cash flow from the property. And, how do I recycle money that I never had?

I'm guessing that I have to make sure that I add in expenses for paying back my lenders when I do my analysis. Plus, I would like to get a little kick back in addition to cash flow from these deals. So, my ARV has to be more around $140K, right? This would give me around $3000-$4000 after paying everyone back with interest and new closing costs on a refi. Does the BP calculator account for this?

Any clarification would be helpful.

Thanks!

Thank you for that information. Much appreciated.