All Forum Posts by: Edward Eloma

@Edward Eloma Congrats on taking the leap into real estate investing. You and I both started about 3 years ago. You seem very excited about the next step to achieving you goals. It's an important step.

What you need to figure out is how involved you want to be. Do you want to swing hammers, hire contractors, remodel distressed property, or do you want other people to do it for you?? That's a big question because you can make a better ROI if you do some of it yourself. Turn-key properties rarely produce as much cash-flow compared to a property you flip yourself. You can ReFi and pull the cash-out after 6 months and depending on how tight you kept the budget you'll leave very little cash in the deal. It's a much more involved strategy but it pays off hence why so many investors do it. BRRRR is NOT A NEW strategy like some novice investors think. I think it's important to understand the labor costs and challenges involved to remodel a property. Turn-key or not someone has to do the work. What type of investor do you want to be? Good luck man.

I think that’s a good point, I actually thought may it be a good idea to buy a family for a cheap price and do some work to it on the inside raise the rents and refinance I think may be a good idea. But will I still make a lot of cash flow on the property??

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Originally posted by @Jaysen Medhurst:

BRRRR is very powerful since you can continue to recycle the same capital in deal after deal, @Edward Eloma. A live-in BRRRR might be just the right thing for you. Do a low-down payment conventional loan, live in one unit, and renovate the property. After a year, refi, get your capital out, and repeat.

For what it's worth: I'm very skeptical of your cash flow number. $2300/month cash flow on 6 units sounds high, especially if you're leveraged. Are you accounting for all expenses, including Vacancy, Repairs, CapEx, Management?

Yes I fix everything myself and my property I own now does generate 1,000 a month.. after all expenses. I have a higher cap rate of around like 10percent. I manage myself and have good rents. But I was projecting if I got another property like this I would generate 2,300 basically Saying my second property would be around 1,300 extra cash flow. But that does make sense and if I buy a low payment down and do I need to completely rehab the place for me to be able pull off a BRRR? And also should I find somehning really cheap put a low down payment and fix it up and do the refinance and do it that way?

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Deciding what is my best option to do. I have a current 3 family as a primary residence I've owned for 3 years. Looking to acquire my second property 2-3 family having that owner occupied. And looking to also expand my portfolio. Need advice. Massachusetts 3 family's currently for a turn key is about 300,000-400,000 in the area im looking for. My plan was to do conventional owner occupied on a turn key for 20 percent down. And live there and then save up again to repeat. And have cash flow from 2 properties. But need advice, I have 65,000 in cash, and my father can access a HELOC for 50k+.. and he is looking to refinance and pull out some equity. Should I attempt a BRRR? Or should I try and do a turn key and have 2 cash flowing rentals. If I get my second turn key I will have cash flow of 2,300 a month from just 2 properties... My goal is to get enough properties to cash flow about 6,000 a month. And sit nice... I heard BRRR method but don't know if it will be smart to have more debt to my name.. and not have so much cash flow and have more properties and more tenants and more debt and less cash flow...

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@Mark Freeman
Wow that is very interesting! Thanks for sharing your story, I’m glad you told me that. Gives me more insight on how I Should Thoroughly review any auction before I begin to offer anything. Thank you so much!

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@Todd Rasmussen oh okay I was under the impression that if you did not win the bid. They could keep like 500 dollars or something. So that’s good to know I will start to try and bid on some houses

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@Todd Rasmussen

wow that is interesting Information, typically how much money came out of your pocket for those first 2 auctions since you lost the bid?

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Originally posted by @Jeff Copeland:

I don't think it's possible to win an auction without exceeding the reserve price. The reserve price is basically the minimum amount the seller is willing to take.

Yes thank you Jeff that does make sense. Why sell if they are not going to make the money back

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Originally posted by @Todd Rasmussen:

@Edward Eloma

We won two bids for the same house on auction.com that did not meet the reserve price. The bank never called us and just listed it for auction again. We won it a third time and this time they had lowered the reserve price so the transaction went through. On the bidding page it will normally say reserve met or not met. Also the bid increments will grow smaller and smaller as you approach/surpass the reserve price. I would not worry about the reserve price if it is not disclosed. Bid against other buyers and not the seller. Many times there will be several auctions before a property is actually sold.

wow that is interesting Information, typically how much money came out of your pocket for those first 2 auctions since you lost the bid?

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Has anyone actually won a bid on auction.com?

And if so did you hit the reserve price?

And also does it notify you if you have reached the reserve price??

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All Forum Posts by: Edward Eloma

Edward Eloma has started 9 posts and replied 35 times.

Post: BRRR OR TURN KEY INVESTMENT?

Post: BRRR OR TURN KEY INVESTMENT?

Post: BRRR OR TURN KEY INVESTMENT?

Post: Reserve not met on auction.com

Post: Reserve not met on auction.com

Post: Reserve not met on auction.com

Post: Reserve not met on auction.com

Post: Reserve not met on auction.com

Post: Reserve not met on auction.com

Post: Second Investment property