All Forum Posts by: Eric Miller

Thank for the very thorough answer. I would definitely work with a realtor on this one.

If a bank foreclosure sale doesn't warranty the title can the offer be contingent on the title company being able to do so? 

What can cause a property to be bank owned without a clear title?

Great perspective. How does this play out when getting an appraisal for refinance? Do appraisers look for specific physical work done on the property or will they take increased rents, etc. into consideration?

Have everything go through a title company just like a regular transaction. Try and find a title company that has a payment processing service for your monthly payments so you have records of everything and when you eventually pay it off, either through payments or a balloon, it will automatically record in your name.

Congratulations on your first kiddo!

I've been BRRRRing a house for the last year while having a new baby at home and have a few thoughts. I definitely wouldn't consider living in the property, having a peaceful and quiet place to be will be so valuable. If you start with a place that needs simple cosmetic updates (which I would recommend since you both have W-2 jobs and have that kiddo on the way) and can do those before you move in that might work.

If your current home would cash flow and could become a good medium or long-term rental, try and hold on to it. If your goal is having multiple long-term holds, you automatically already have one!

If you have enough equity, consider a HELOC on your home, just know there is risk involved and there will be some stress worrying about getting it paid off.

If you won't be living in the house you purchase, you'll likely have to do a combination of financing, e.g., HELOC + hard money.

Read through the creative financing threads, there are some pretty interesting ways to structure deals.

I live in a college town and it's great for renting out a property, but the buy-in is pretty painful and makes it hard to cash flow. The college town you're looking at may be different.

Last thought - estimate your rehab costs and then double them, estimate your timeline and double that too. Plan for those figures and you'll be happy if it's cheaper and faster and not in trouble if it isn't.

Good luck on the journey!

I'm new at BRRRRing and just about ready to refinance. The main benefits I see are getting a property for 75% of it's value after all costs and only having to have a minimal down payment (that's how I see the money I'm leaving in the deal.) 

I will say this deal wouldn't work without leaving in 7% or so of ARV, but in the last year I have seen a few come up in my local area that would. Hopefully I'll see more later this year!

BRRRR is a buy, repair, and hold strategy, it sounds like you're more interested in flipping?

Our HELOC is at 7.75%, no points. Why are there points to have a high interest rate?

Also, don't take the funds up front, make draws as you go. Your initial monthly payments will be very low and then build up as the project gets to the end.

 Thank you, that's helpful.

My BRRR is in a pretty great location. There are occasional properties in the rural areas around here that I can get 95% LTV on, those areas don't appreciate as quickly but do have decent rental rates. Not sure if it's worth it to gain the extra appreciation while also having to manage multiple properties that are a bit of a drive away and have unknown maintenance requirements. As long my refi goes through ok I think I'd like to hold onto the BRRR and be more careful about what I get into next.