All Forum Posts by: Emily Register

Attending!

Thanks to all for the responses! They are all very level-setting and encouraging. The general theme I am getting from this is to find people in the markets I am interested in who are currently doing BRRRRs (if there are any), see what their numbers look like, and base goals off of that- not what I read and hear about in different markets from different times. I am glad to know that I am not the only one out there struggling to make the BRRRR numbers work. I am also glad to know there are still those of you figuring out ways to be successful at it. I will search locally and keep at it! Thanks all!

@Todd Rasmussen Hi Todd, thanks for the response! I have yet to find someone (that isn't a commercial or hard money lender) to refinance at 80%. The cash flow numbers work at 75%, but I am leaving more than what I would like in the property (based on the analysis). I am fine being patient on refinancing. I am wondering if most typical BRRRRs are done at 75% LTV and maybe my expectations are just took high from reading so many 'home run' examples.

Hi All! I have 2 rental properties that I purchased this summer (yay!), neither of them were BRRRRs. Just getting my feet wet in real estate. Now I am shifting to targeting a good BRRRR property. I am in need of some help understanding the numbers behind a BRRRR. I have read most of the BP books, listened to many podcasts, read countless articles and posts about successful BRRRR properties. But when it now comes time to crunch my own actual numbers I can't seem to repeat any of the success stories I am hearing (maybe that's my problem, high expectations?). I keep hearing/reading of using the BRRRR method to use the same sum of money over and over and over again, thus leaving little to no money in a property. I have yet to find an analysis where that actually works. My biggest hangup is in the 75% LTV refinance amount that is standard for most lenders. (Yes, I know commercial lenders may have a higher LTV, but also higher rates). That 75% LTV refinance usually has me leaving ~$10k-$20k in a property. A lot more than what I keep reading stories about.

Help me understand what I am missing! Am I reading too many 'home run' BRRRR deals? Have I not found a property cheap enough yet? Do I need to find a different lender who can refinance higher than 80% LTV with low rates? For context I am located in Raleigh NC, looking in the Greenville NC market.

@Dan Gamache the property we are eyeing right now is already fully rented, 6 units. I have reached out to about 10 different banks and credit unions and all have a limit of 4. I think there is something about purchasing a 5+ unit that goes from residential to commercial real estate.

@Dan Gamache using private lending to get started and then refinancing later makes sense. But we still have the problem of finding a local bank who will finance more than 4 unit properties. 

Hi, 

My husband and I are budding real estate investors in NC. We own two rentals and plan to purchase some multi family homes in the future. We can find a ton of banks that will finance duplexes, tris, and quads. However, we are having a hard time finding any banks or credit unions who will finance a multifamily home with more than 4 units. We are looking at 4-8 unit properties. Does anyone know of a bank or lender in NC that will finance 4-8 unit properties that are LESS than $750k (I think there is some rule about that number)?? Bonus points if you know of a loan product that would let you roll some repair/remodel costs up into the loan!

Thanks!
Emily

Hi @Joshua Dorkin or @Robert Perry, I am having this exact same issue. I can upload and position it, but it will not save. Help please.

Hi @Keith Boom and @Yung Hung,

I live in Raleigh (near NCSU) and am running into this HOA problem right now trying to find townhomes in the Raleigh area. Just wondering if either of you have figured out strategies since the original post to help offset the HOA eating your monthly cash flow. I am seeing many town homes with HOAs as high as $200-$250.

I have heard from a couple of local investors that 6-8% return is considered good in Raleigh- have you found that you are able to do that with HOA costs?

Thanks!

Emily

@Christian Hansen thanks Christian! I had actually come across her in a google search so I am glad you recommended her. Now I will certainly reach out to her!