All Forum Posts by: Hunter Purnell

I'm curious if the BRRRR method is possible without a W2 income? I plan on flipping properties but is there any kind of DSCR cash out refinance? I won't have income from flips for a year on my taxes so I'm wondering if in the in-between phase if I would be able to do a cash-out? Or if I would have to wait until I'm showing income on a tax return?

I'm just inquiring to see what would be possible if I decided to do real estate full time in the future. 

I think we're in weird spot in the market right now. Prices are just now starting to fall, but rates are hopefully near their highest point. The next few years will be on a downward trend if unemployment rises like expected. Deals will make more sense in the future. I don't think your numbers are too conservative. In my opinion that's not a bad deal. It will break even/ cash flow a little immediately. When interest rates drop it should cash flow more. 

Here's how I roughly do my capex/maintenance. (I use one %) Also I change the number some depending on the condition of the property. A 150 year old building that has been re-done at top quality might be closer to an A for me.

A Less than 10 years old (10%)

B 11-30 years old (15%)

C 31+ (20%)

My personal goal:

1M + Net worth

50k/ year in passive income

300k in cash for house flipping plus a line of credit

These are my minimum metrics before I would go full-time if I decided to. Just curious what other people's metrics are/were before they quit their 9-5?

Thank you for the insight, that was very helpful. The market where I'm at is booming relative to its market size. There are battery plants and large bourbon distilleries coming  left and right. To me, the market seems overvalued. But where are all these employees going to stay? There's certainly not enough housing, but new housing is becoming unaffordable in my market because of the new construction costs. I go back and forth and can't make my mind up. 

I'm interested in getting an AirBnB in the Palm beach area. I live in KY, but I have some family and friends in the area and really like it. In my opinion I think its due for a correction. Prices have doubled in a few years. But I don't live there, and I wanted to get an insiders view on the area. Which areas are on the rise, and which areas are falling.

Any investor/agents in the area I will be looking for an investment home in the next 2-3 months to 1031 into. I'm not going to buy unless its a deal, needs to be able to get financing, but not scared of a place needing updating/renovation. 

I'm looking at possibly doing a 1031 on some land I'm selling. I'm either looking for a nice home for Airbnb or I'm more likely going to find a multi-family for long-term rental. I had some interest in a 5-plex. It seems like about 1/2 of my local banks don't want to do commercial loans. Once you go over a 4-plex its a commercial loan, but due to the amount I will likely be buying a 5-plex or larger in my market. I have a few questions regarding commercial loans, I was hoping to get some input. The purchase price will likely be 6-800k. So far, the best options have been 15 year fixed 4-5% or a 5/5 balloon matures in 10 years amortized over 25 years 3.75%-4.75%. 20% down on both. 

What is the standard minimum down payment?

Is it possible to get a 20, 25, or 30 year fixed rate?

What kind of rates are you getting?

Is the loan based on the rental income of the purchase property? Does my personal income have a large input in getting approved?