All Forum Posts by: Jacob Dodson

At $200 cash flow each, and with some partners, I need 32 doors. You would need 20 doors. Although I find that in my market I can cash-flow upwards of $500 per door if not more depending on the situation. I believe Brandon Turner has a minimum of $200 cash flow after expenses for every door so that should help set your goals and expectations. It is a marathon, not a sprint. If you can rehab quickly and refi to get all your money out, then that really helps keep the pace up.

THanks for the updates...us newbies are trying to get our heads around it.

Looking to start BRRRRing in WA state, specifically north Seattle in Snohomish County. I am personally getting started at this phase of my investment portfolio and am excited to talk and trade information. I already scan the BRRRR forum but want a more geographical based conversation. All you brokers and agents let me know who you are. If you invest in WA state, lets talk.

Lets start with your name and what you want to do soon or have done recently.

Going through this myself as a newbie. After talking with my mortgage broker and a recommended hard money lender, this is how I understand it. You need to have 25-30% on the total purchase price + rehab costs as a refundable down payment.(IE: sale price $75K + rehab costs $25K =  $25K to $30K just to get the hard money going). Fix the house quickly (45-60 days recommended). The value after repairs is $150K. My bank broker did not require a renter/occupancy for refi but I guess its good to do right away. Line it up while you remodel. You get an appraisal and refi with your bank on the hard money note, or cash out refi where you have enough equity to do this and still maintain 25% equity. So you refinance the 100K in order to cover the hard money note and you cash out $12.5K. At the end you can get your down payment back from the hard money lender and possibly get $12.5K on top to go into the next project (up to $42.5K). If you can't cash out, then you get your initial down payment back and you successfully have an income property in your name using other people's money. This is how it was taught to me through a broker and hard money lender. 

For me, I have to take on a partner for the first part and either pay back with interest or split future rent revenue.

I was just on Redfin and compared to some other areas I have been looking into, Vegas seemed like there was a lot going on. I STAND CORRECTED, I wasn't using data just my eyes. Thank you Vegas investors for weighing in. And since I have you lot's attention, what is the best rental market down there? SF, MF, MH,...etc

Noticed the mls in Las Vegas is crazy busy. Looks like every block has a seller. Is this a buyers market there right now.

With all the NO MONEY down publications out there, and all I have read on here about BRRRR strategy, hard money seems to be the only way outside of rich friends with no where to put money. Do you have thoughts on how to buy cash only listings without hard money...obviously the NO MONEY down way?

 The REHAB has a total estimate of $75K. The asking price of $300K is too high for sure, but I was wondering how to apply the 70% rule to this? Do I offer $230K which is 70% or $300K or do I offer $187K so that combined with rehab, it hits the 70% threshold all said and done?

House is being listed for $300k. ARV is roughly 375k. What is my offer on it? Somehow the calculator is confusing me.

Secondly, how does the refi pay off my hard money? Does it have to be rented before I can refi?