Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Whitney Hutten

Whitney Hutten has started 212 posts and replied 1531 times.

Post: Funding Rehab Cost for BRRRR

Whitney Hutten
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Rental Property Investor
  • Boulder, CO
  • Posts 1,543
  • Votes 1,151

@Cortez Wilson One challenge with using all cash for the purchase and rehab is you have to season the title (aka wait up to 6 months) to refinance. The question is, can you afford to have your cash tied up that long before being able to refinance out (assuming you will execute that "R" of BRRRR)? Next time, maybe think about using hard or private money to fund the purchase / rehab so you have loan on the property and can refinance back out sooner. PM me if you hit a snag!

Post: Distressed Property vs. Good Location?

Whitney Hutten
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Rental Property Investor
  • Boulder, CO
  • Posts 1,543
  • Votes 1,151

@Chisom Frazier Congrats on getting started. Are you using the MLS to find distressed properties? You may want to go a non-traditional route say like a wholesaler, driving for dollars, or pulling a list. If a property is in a good area, there is most likely investor competition (which is a great sign). Get to know those investors at meetups. Also, don't overlook property managers as a source as well. Most importantly though, if someone doesn't want to live in an area, it will be a very hard business model to maintain, and challenging to find good quality tenants.

Post: CASH OUT REFI CONUNDRUM

Whitney Hutten
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Rental Property Investor
  • Boulder, CO
  • Posts 1,543
  • Votes 1,151

@Jared Kotler How many commercial lenders have you spoken? The 3% higher rate seems very high.  Also, why not refinance out to conventional lending (if you have spots) and lock in the historically low rates?  PM me... happy to share my lenders to help you solve this problem.

Post: How do you get to 12% cash on cash or 1% rent?

Whitney Hutten
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Rental Property Investor
  • Boulder, CO
  • Posts 1,543
  • Votes 1,151

@Keith Homstad Keep digging into Midwest markets. You can definitely get 12% COC returns there as BRRRRs. I'm in KC and Indy right now and it is possible (I hit 20%+ on my BRRRR deals). I would start with finding a deal finder / wholesaler / realtor / PM who could source you better deals. They are there...

Post: Out of State Flipping

Whitney Hutten
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Rental Property Investor
  • Boulder, CO
  • Posts 1,543
  • Votes 1,151

@David Yang If you have a trusted contractor and great deal, it could work! I've completed 20+... 

Post: My Money or Hard Money for BRRRRs?

Whitney Hutten
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Rental Property Investor
  • Boulder, CO
  • Posts 1,543
  • Votes 1,151

@Tariq K Frantz I think it depends on your goals and how much capital you have. I started with all cash, but quickly was stymied as I could only work on 1-2 projects as a time.  Now, I personally use hard / private money and underwrite into my number from the start.  I do this so I can use leverage and scale quicker.  That said, I always make sure I have enough reserves to cover projects.  

Post: Ready to jump in flipping or buy and hold

Whitney Hutten
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Rental Property Investor
  • Boulder, CO
  • Posts 1,543
  • Votes 1,151

@Luis Ascencio Talk to a few hard or private money lenders to get a sense of terms you will get for a fix/flip loan and underwrite that into your numbers.  And run numbers for both a flip and for a hold that way you know both exits. You could get that done in a hour or so... Unless you have a "rich uncle" that will lend you the money.   

Post: Should your 1st investment be personal to start the BRRR method?

Whitney Hutten
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Rental Property Investor
  • Boulder, CO
  • Posts 1,543
  • Votes 1,151

@Cheri Castro, if your husband is still at a W-2 and can qualify on his own, purchase that way... You then only use up 1 conventional spot and then you can build your 2 yr hx up as a 1099 and be ready to rock your 10 conventional slots ;)

Post: Should your 1st investment be personal to start the BRRR method?

Whitney Hutten
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Rental Property Investor
  • Boulder, CO
  • Posts 1,543
  • Votes 1,151

@Cheri Castro First... Congrats! Savings and reserves. Nice! As far as purchasing a personal residence vs BRRRR... that's a tough call. I like starting with a personal residence (b/c you can get in with low money down). The issue, is it can make it tough to qualify quickly for the next investment property due to debt to income. Also, you are about to go 1099... so that means you will need to probably have 2 years under your belt to personally qualify for a loan (not sure what your husband's situation is). What is you did a live-in flip? Bought a home that needed some work... fixed it up to drive up the equity... then refinanced out some cash... and then put in a renter in it... and moved on to the next project.

Post: How practical is it to buy a wholesale cash, reapir and rent?

Whitney Hutten
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Rental Property Investor
  • Boulder, CO
  • Posts 1,543
  • Votes 1,151

@Victor I. One thing to consider is if you buy all cash, repair it, then refinance (ie. BRRRR)... you will have seasoning issues to deal with. 1. if you try to refinance immediately, you will only get out the cash that is listed on the HUD... not all lenders will allow you to escrow the rehab. 2. if you want to get the max cash out, you may be required to hold the property for 6 months then refinance. It can be really hard to lock up your cash for that long (hence why it's appearling to sell).