All Forum Posts by: Daniel Coley O'Grady

@Mark Munson Hi Mark, thanks for the reply. I'm interested in using the BRRRR methodology. Can you usually find worthwhile deals working with an investor agent? It seems these wholesaler deals are pretty good (probably too good!)

I'm thinking of starting with buying/rehabbing my first house being cash, then refinancing after I rent it and repeating. Is that a sound strategy? How many times will a lender usually let you repeat?

I talked to an investor agent and she asked how much I'm looking to spend on first home (with rehab). I said around 200-250 and she replied that seemed low (which was quite discouraging)

Is this generally a good idea/recommended for a new real estate investor?

As a newbie, I was excited about the prospect of getting into real estate investing. I have several hundred thousand to invest, but I am simply not finding any worthwhile deals after looking at hundreds of potential deals in various cities. 

Why would I invest in deals with a 4-6% ROI that will cash flow a couple hundred a month (if I'm lucky) and go through the trouble/risk of property ownership when I can get similar returns from other completely passive investments with practically 0 risk?

Pretty bummed out!

I am new to Real Estate investing and am mainly interested in LT Landlording deals of SF or duplexes. What I am really struggling with as I develop my strategy is; why would anyone finance a deal vs paying all cash (assuming you have enough cash resources of course).

As an example, assume a turnkey house costs $200,000 and rents for $1800. (And you are looking to invest around 200k)

Option 1 - paying cash, you cash flow 19,600 each year and get $6K in appreciation (assuming 3% appreciation). You also save a few thousand on closing costs and maybe a better purchase deal

Option 2 - You buy 4 $200,000 houses putting down $50K on each. If you cash flow $200/mth on each, you get $9,600 per year + $24,000 in appreciation. 

- why wouldn't you want a bird in the hand of $19,600 cash flow vs $9600? The appreciation is nice but is not a given and is more of a hope. 

- the time spent managing 4 houses vs 1 seems like a big deal.

-Much easier paying cash instead of dealing with the loan process.

- Financing seems much riskier, since you have to make the mortgage payments regardless if you have a tenant or not if you finance, but if you own not having a tenant would stink, but you still are getting the appreciation and the risk of going negative cash flow is MUCH less.

Thanks -I am really interested in hearing different viewpoints.