All Forum Posts by: Gabriel J.

Thank you!

@Chris Reyes

My 'why' is my family.

After my divorce and 50/50 of nearly everything including my kids, it was a chance to use money more wisely and specifically to establish a lifelong wealth for me and my kids and, someday, future spouse. I believe God allows everything to happen for a reason. So I will be the best steward of everything He has given me.

My goal in REI is financial freedom then retirement. I have one property now and am working on a second.

But I was curious for those that are working towards financial freedom, how much should I keep in reserve per house? 5k? 10K?

I know that CapEX can be taken out of income but isn't there so much CapEx one might need to take out?

I have one car detached garage on a property that is leaning by an inch. It isn't alot I know, but it bugs me. I have already tried to straighten in a few times and it hasn't worked. I have tried to have some people come out to work on it and idk if they are just wanted to make money or what, but they recommended I tear it down.

After that I decided to take another look and saw that ill need to replace thr bottom and top sill on one side which I can do. But it won't solve the leaning issue. Its not dangerous I don't thing but I've stabilized it anyway. What would you guys recommend? Tear it down and pay another 20k+ to build another or let it be?

In most cases I understand "if it ain't broke dont fix it" but sometimes things could be better.

Thank you!

There is a property on one lot that has two separate homes on it. A local lender said they could only appraise it based on one of the homes. Has anyone run into this problem before and have any suggestions? 

Thank you both, I appreciate it.

What is a good ROI for a BRRRR? I know people use CoC which is great but if I am getting 100%of my money back out, how would I calculate a good return? Here is the info on the potential property:

Purchase- 50k

Rehab - 30k

Holding - 8k

ARV - 120k

Rent projection - 950/mnth

I would refinance 90k to get my money out which would make the mortgage around $635 a month PITI.

If I did a normal ROI calc I would only have around a 4% return. But cash flow would be $300 a month.

Any advice would be appreciated.

A family member wants to invest with me and let me borrow 50k. I was going to either use his money in two ways but wanted to know the best option. If there are other options let me know.

1st: Hard money- for the BRRRR method.

2nd. Down payment on Duplex($200k) and we split the net income.  Move-in ready and is rented. 

My only draw back is that my goal is financial freedom and setting up a way to build up a portfolio for retirement. I am in my late 20s with 2 kids. 

Is it worth it to split income if I am making next to nothing substantial in cash-flow? 

Or is it worth it to buy a property to BRRRR but would still be worth $60k ARV? Cash-flow would be moderate.

Any advice would help!

I first purchased a small 3bd, 2 bth, basically move in ready for 60k. I was a little wary of the BRRRR method so I went straight to the lender and used a good chunk of cash for my 20% down and used some more cash for the rehab which about 5k. I am pretty handy and did the work myself. It took me a month and a half to get rented and it now rents for $889, mortgage is $375.

However, now I am short on cash. I have a family member who is interested in what I am doing and wants to lend me up to at least $50k (unsure if they are wanting to charge interest, however its family). I wanted BP advice on what to do with this $50k, do I go through a hard-money lender? Use it for rehab costs? Since I am low on cash I am not looking to go outside the SW MO area because my assumption I probably do not have the cash for PM company. 

Any advice would be appreciated. Or if you need more info let me know. Thanks!