All Forum Posts by: Evan Griffin

@Jerry Padilla Rehab loan is only for rehab costs correct? Not to purchase the home?

@Nasir El Ameer that makes sense, it’s key that the house is updated when the bank first looks at the property.

Thank you for clearing that up!

@Jason D. Thanks Jason!

Hello BP,

I'm not 100% on the B in BRRRR.

Buying a property in distress (best deal) that may not qualify for a bank loan, requires you too pay cash.

Perks: Ideal in a competitive market closing faster gives you the advantage.

David Green talks about when getting pre approved, checking rates etc. to find out the banks LTV (loan to value) shooting for a goal of 75% give or take. Allowing you room to recoup your initial investment.

So when doing a BRRRR investment. Can you use a bank loan to buy and then refinance after rehab? Or are you going to the bank to research your refinance before you pay cash?

I guess between going to the bank for pre approval, loan information, and interest rates and buying/financing after the rehab has got me a little confused.

All said and done.

Can you use a bank to do the Buy in BRRRR and still come out on top? Or is cash the only way to go.

@Tim Herman I know my area and this neighborhood so no I don’t think I will have a problem renting it.

Average rent in that area is 1,614$. A new roof! A house this small? 2,000$ in supplies in house job. I’m not making numbers up just for fun.. I could higher expenses to be more realistic. Sure. But This house allows me to save 800$ a month personally. So with money saved, a cheap payment, and the main purpose of this house to live in. Save. Payoff what little debt I have and possibly rent out. Sounds realistic to me. But who knows.. I’ll run more reports with higher numbers and expect the worst for the property.

Evan Griffin

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hello BiggerPockets Community, 

Looking at this property to purchase as my main residence for 2-5 years before becoming a landlord. I thought I should run a Rental Analysis since that will be the end goal. Although a lot of the "tests" it might not pass. The neighborhood is great and living here would allow me to save a ton of money. Although it might not be a lot of cash flow. Im getting a place to live and a option to rent in the future thats positive cashflow. 

Thoughts? 

(Finance) 

I have saved up 35k to put down. The other home that I own is not sold yet. (Nor listed currently) I thought about doing a recast loan allowing me time to sell and come up with the extra money. Worst case scenario if it doesn't sell I would be able to come up with the needed cash in 2 months I'm just not wanting to cut into those reserves, what are my best loan options? 

Thank you for your time,

Newbie Evan Griffin  

I very much admire and appreciate your input! With being home full time as the end goal anything to boost my cash flow while allowing me to be home with family is exciting. I've been successful with turning a profit on single family homes and have been researching to find the best opportunities in the Eugene market. Thanks for the advice. Talk soon. 

Evan Griffin 

Good point, Theresa.

Selling this home combined with savings should allow a 20% down payment on a 500k property. Currently watching and searching all listings for a house with positive cashflow. 

Thanks for your input Lauren!

My goal is to make as much money on this property as possible (make it worth it). Move back to Eugene (previously had a home and sold 2 yrs ago) to purchase a property I can later rent. 

Wanting to be home more with my family and my main money source being in Alaska is my WHY drive to make the best decision and continue in real estate.

Mutual feeling on selling while the market is hot and obtaining more cash flow. Opening that freedom of not being tied down and the ability to act now. 

Evan Griffin

Hi, I live in Redmond, OR and will be moving to Eugene, OR April 2020. I have time in my favor and I'm trying to make the best financial decision. I work in Alaska 8 months a year commercial fishing and am on my second property. 

I currently owe 280k on a 3 bed 2 bath 1750 sqft home. I can sell it between 330-360k as of today. Working out of town I will need a property manager (180$) and I'm 200$ short on my mortgage for what I can charge to rent. 

Total 380$ in the hole besides all the things that can occur being a landlord. 

Is Appreciation and paying down the debt of the loan worth taking that monthly loss if I can afford it?

Central Oregon is a highly desirable place and I'm located in a great neighborhood. 

(mortgage payment will drop 200$ after 20% equity automatically)

Or do I sell the property and hold on to the money until I find a good buy in Eugene, OR? 

Im new here. Any suggestions or advice would help! A lot of my knowledge is reading at sea and the experience of purchasing two homes. I am 26 years old and long way to go! 

Thanks,

Evan Griffin