All Forum Posts by: Dan Rivers

Hey @Rob Cassagne would love to chat to help you out. We can do a deep dive analysis, guide you through the restrictions and help you throughout the process. 

Alexandra, would be more than happy to have a chat, just did this with another owner the other day. We can go over estimated numbers to see where your actual cash return will be and see what is the best fit for you. .

Troy and I work for Maven and we can both help guide you.

I am out of SC and invest as well as help investors. I agree that you want to vet your team in or out of state. Make sure your realtor knows investing language and how to analyze. Find an insurer that is a risk manager not just a salesperson to sell policies. A good team no matter where you go is key to being successful.

Regarding estimated costs- here in Charleston area, each county has a tax estimator to use for that purpose but each area will be different. Insurance, ask an agent to help, bring in the WHO's, your team. 

Regarding numbers, make sure whatever you decide it is actual cash flow. It isn't just PITI then that is your cash flow, build in maintenance, cap x, vacancy, here we have a termite bond. Then your ACF is after all these things.

If you can start with a house hack, whether multifamily or find a home you can add an in-law and rent out the rest of the home, this is a great way to get into investing. You can get your living expenses down really low and save up money for more investing quicker.

Go get it!
Dan

I have one with a local bank in SC. I would find out who may offer one in your area. I just know they like to see one month at a zero balance over a 12 month stint to show you don't just keep it maxed out. They want to ensure you are good risk if that makes sense.

I think any type of LOC is great to use for this strategy, either a HELOC of BLOC if possible. I would say that you do also need some cash in case in doesn't fully BRRRR and you need to leave a little money in the deal. You want to be able to pay off the LOC at least 1 month out of a 12 month period usually to show the bank you aren't high risk. I have used this strategy to build our 8 unit portfolio. I know that isn't a large one but we have about $450k in equity and cash flow $3500 month and have had to keep very little of our own money in the deals. It is a good strategy, in my opinion, if done correctly.

You're welcome and good luck. Hope to see you at a future meetup here in Charleston.

I believe Andrew Lucas hosts a meetup in Columbia. He’s a good contact that way. And if you come to charleston, definitely recommend REi Central.

I know of some people that switch off. So first house he keeps, next house you keep. This is a clean way of doing it. You can also form an LLC with an operating agreement and just hold them all in the llc. Depends on comfort level. You want it to be clear though with the operating agreement. What if he wants to sell and you hold or vice versa. Get all the terms ahead of time.

Are you looking for a lender to purchase it or on the refinance?

@Patrick Menefee my contact at Loan Depot was able to find me a good product. I’d be happy to send you information, shoot me your email.