All Forum Posts by: Deren Huang

Depending on your goals, cashflow may be tight in that city. I would call it a win if you could break even with no cashflow. *GASP* I know BP says cashflow is king.. but if you can get away with house hacking and subsidizing your "rent" that's a win.

0 Votes

@Pierre Beckford

VA loans are great, but in this hot market it's tough to get them accepted.

You can house hack by either getting a small multi, like multiple have mentioned, or by renting out to roommates.

Another strategy (albeit tough to find) is a "live in flip"

1. Find a home

2. Renovate

3. Live in 2 year

4. Sell for tax free gains (250k for single, 500k for joint)

0 Votes

Originally posted by @Jay Hinrichs:

Originally posted by @Stephanie P.:

Originally posted by @Mike Schorah:

Why does David Greene push a cash-out refinance with the BRRRR strategy?
Why not an "H" for the 3rd letter as in HELOC?

Why won't a HELOC work? Is a HELOC not as good as cash? And why does everyone recommend taking a HELOC for their first investment property opposed to doing a cash-out refinance?

Leveraging the property with a long term mortgage allows the investor

Take maximum cash out using stable funds
Allows the investor to take advantage of the lowest interest rates we've seen in generations (probably redundant to the first one, but the leg up investors have when using loan products that are both stable and have historically low interest rates can't be stressed enough)
HELOC's on investor properties are much more difficult to get than a cash out refinance
There are myriad loan products to use for long term wealth; conventional, DSCR and even interest only

Many people recommend using a HELOC for their first investment property because most investors (yes, a sweeping generality) own their primary residence and it's fairly easy to leverage that property with a HELOC. Many people like having their primary residence make them money instead of sitting on dead equity. Not everyone agrees with that approach to buying properties. There are several people who believe the two (primary residence and investment properties) should be totally separate entities. Leverage the investor properties as much as you can, but get the primary residence paid off so in case anything crazy happens, you'll always have a place to live. Everybody's risk tolerance is different.

Hope that explains it

Stephanie

I think one would be amazed at the stats on how many primary residences in the US have zero debt.. that is what saves us in troubled times.

Plus Heloc's can be frozen or called.. at the sole discretion of the lender/bank. whereas your 30 year fixed refi as long as payments are made it cant be called unless there is another event of default.. like not paying insurance or tax's and committing waste .. but rare a lender will initiate a foreclosure for waste.

30 year fixed rate debt is some of the best debt positioned to the regular person even categorized as a investment property. Using that vs a HELOC is a big factor.

2 Votes

@Mike Hasson

Great book suggestion. I'll have to pick that one up.

Good luck to you on the journey.

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Branding. BRRRR or BRRHR...

But yes, HELOC's are great, but most of them are shorter term (though interest only) and floating interest rate. And most people starting out are borrowing the money to buy and renovate so a cash out is necessary to pay back.

1 Vote

@Mike Hasson

congrats on the sale of your home

I think it all boils down to your "why" and the goals you are trying to accomplish.

I have not worked as long/hard as you but I struggle with rewarding myself, it potentially comes out of a poverty mindset, thinking there is not enough.

Only you can be the judge of why you want to reward yourself and when.

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Looks like a great book for teenagers. My kiddos are only 2.5 and 8 months!

I would say to myself that you can do a lot of things in real estate alone but having partners and doing JV's can really explode your growth.

3 Votes

Where my golfers and investors at? Weather is nice and I want my write offs. ⛳️😂

Drop a contact and I’ll reach out!

2 Votes

Tulsa, Oklahoma

@Logan Hartle Great idea, I am going to PM you.

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There are multiple meet ups here in Tulsa, just not BP, mostly posted on FB groups.

I am going to try to put together a golf investor meetup when the weather gets nicer.

1 Vote

All Forum Posts by: Deren Huang

Deren Huang has started 40 posts and replied 398 times.

Post: Seeking Advice for a newcomer

Post: Interested in Start House Hacking

Post: Why does David Greene push a cash-out refinance with the BRRRR st

Post: When is it time to treat yourself? [Reinvest VS Spend profit]

Post: Why does David Greene push a cash-out refinance with the BRRRR st

Post: When is it time to treat yourself? [Reinvest VS Spend profit]

Post: QOTW: What advice would you give your younger self?

Post: Golfers and investors in Tulsa

Post: Meet Up for Industrial, Office, Retail

Post: Anyone in tulsa area that is down to start meeting up?