All Forum Posts by: David Light

Do you like the house you have now or do you want to sell to move on from it? That would drive refi or 1031 for me.

Name seems fine to me. Are you just looking to own rentals yourself? If so I would focus on finding properties you like, how you’ll finance them and manage them etc. I’ve found people could care less about my company name or logo if I have a good house they want to rent that’s all that matters. I’d dive right in and worry about branding a little later on.

I've recently found a lender that will do 80% ARV at 7% for 60 days while we rehab and then refinance at the end of 60 days into a long term note. I haven't used that method yet but plan to on the next one.

Prior BRRRR's I've done have been with a partner to split costs and spread the work between us. It's worked well for us and we've both learned a lot from each other and the experience that I think has accelerated our learning curve and ability to move quickly.

Good Luck!

Check out this podcast. 

https://www.biggerpockets.com/renewsblog/biggerpoc...

I've started waking up earlier to clear my head and get set for the day and it's been good so far. Good luck!

do you want to buy a second rental? Are repairs needed that will increase the value of the house and let you refinance it for more if you pay cash now? 

On a personal level would you be comfortable with a loan or would it male you constantly nervous? 

Just some questions to help think through this. The answer is different for different situations. I’m looking to buy more houses so I use leverage to preserve and keep using my cash to buy more. 

With all of that equity could you do a cash out refi and use that to buy an investment property without having to move? If I have to convince my wife of something usually that means she really doesn't want to do it and I've always been told happy wife happy life...

I wouldn't do it. The after repair value is less than the cost of the house plus repairs and the cash on cash return is too low for me. I aim for houses that I can refinance after repairs and get most of my money out of and a 12% cash on cash return.

To preserve cash I would look for deals that let you execute the BRRRR strategy and refinance after repairs to get your money out and do it again. With the list price being basically market value this wouldn't work for that.

Also, not having the money to do the repairs right away would be a little risky for me. What if something happens and the car breaks down. Then you have to pay for the car and have to wait longer to do repairs. I would make sure I had the money to finish the house and get it rented as soon as possible before buying.

Looks like you've put a lot of thought into it. I've found if possible it's best to keep it simple and for family I work with that would  be a little too confusing. Is there a way you could just do a straight loan with them at a rate that works for them? Do they have enough cash to do the mortgage at a decent rate? That would save you closing costs and Fannie May limitations.

Our leases start as one year and then automatically go month to month at the end of the year. We've had houses with one tenant for 4+ years in that mode..

If they say they're gone in 6 months I would look at the time of year and how easy it will be to rent the house. We recently said no to someone going month to month because they wanted to end after school started and the school district is the key reason people want that house.