All Forum Posts by: Dustin Maxson

Hey Josh, I am a new investor in the Pittsburgh area and I recently just bought my first property and currently renovating it to be used as a short term rental. I don't have a lot of experience but from the research and networking that I've done, I would highly recommend using the BRRRR strategy to approach your first deal. The whole point of the BRRRR strategy is to create equity in a property and then pull your cash back out of the property to then go and do it again. Theoretically you can by 10s or even 100s of properties on the same cash if you're really good at what you do. If you go for the 20% down, conventional method of investing (which is still a good option for some) you keep all of your money tied up in the property until you save up enough to then go and do it again.

When you put 20% down on a property your LTV is 80% from the start. If you use BRRRR and your total costs (purchase and rehab) are at or below 80% of your ARV then you will be able to pull all your money back out and still have a LTV of 80%. And now you have the money to repeat as well as 20% equity in the property.

IMO when you use the BRRRR strategy your intention shouldn't be to generate tons of cash flow, but to generate equity so you can then move on to other investing strategies. The cash flow you do receive in the mean time is just a bonus.

Lastly, if you are asking because you don't necessarily have 100k to buy a house and fix it up with cash, I was just in the same boat as you. But I found a lender in my area that offered 80% of the purchase and 100% of the rehab and it automatically converted into a mortgage after the rehab was completed. I now have over 30k in equity in that property and I only had to put a 20% down payment for the loan but the lender is currently working on getting me a HELOC to access all of my money again. It is a little bit of a twist on the BRRRR strategy but it was a good option for me because I didn't have all the cash up front.

I hope this helps and if you or anyone else has any feedback on anything I said it is much appreciated!! 

Hi, I’m a new investor located just East of the city in Greensburg. I’d be interest in attending these meetings. If you could please send more information id be greatly appreciated! 

A few months ago I started to think seriously about starting to invest my money in real estate. I've listened to numerous bigger pockets podcasts, watched several webinars, and have read and recently ordered a few of the suggested books by Brandon Turner. I absolutely love Bigger Pockets, its mission, and the endless amount of information and tools it provides. I become more and more enticed with the real estate investment business everyday, and after every read, listen, ect. So to get to my question, is now the right time to get into this? With all the big talk of the upcoming "inevitable" recession, it scares me a little to get in now. I am without a doubt goint to invest, I'm just wondering if there is a bad time to get it, is it now, and how do you tell? Also I am particularly interested in the "BRRRR" method If that changes anything. Thanks all in advance!!!