All Forum Posts by: James Baker

Quick question.  I often hear people warn of being overleveraged if the economy has a correction.  I would think that if the housing market dropped by 50%, you are protected in the form of having your tenants pay your mortgage, even if it is underwater.  If it takes 5 to 10 years to recover, you should cash flow throughout the downturn if you are managing your money for the property properly.  With that being said, I could completely be wrong with the way I am thinking here.  Thanks in advance for responses!!!

Great information and thank you guys.

Great information and thank you guys.

I could use the expertise of the B.P. community. This may be a silly question, but what would come first, bringing a deal to a hard money lender or getting funding then finding the deal?  Thanks in advance. 

Thank you guys for taking the time to respond to my questions.  I will definitely take into account all of your input and suggestions.   

Hello BP. I have a question about the requirements of the seasoning period of time when it comes to the refinancing portion of the BRRRR process. If I purchase and funded a rehab on my own with cash and brought the value of the property up to market prices, could I go to a bank and ask to borrow against it without any time restrictions? For example, a bank may say you have to wait 3 to 6 months from completion of rehab, or 6 to 12 months. Or could you borrow against the house right after the rehab was completed?

Thanks in advance and I appreciate your time and input. 

If you're buying for the long term,  then purchase it.  Just because there are dogs there now doesn't mean they will always be there.  They could be moving next month for all you know.  As far as liability with dogs, I would think the onus is on the owner of the pitbulls and the property owner that houses the dogs if something were to happen.  Chances are that the local town or county has ordinances specifically for these situations.  If buy and hold is your game, then don't let a temporary problem keep you from your future success. 

Good luck.

Wow!  Thank you all for the insight, explanation and break down. I really appreciate it.  Looks like I have my answer.

Joe, you know your stuff.   

Thank you Jennifer and Joe for taking the time to respond to my question.  We set aside $500 for CapEx and Vac rate and have about $480 cash flow after that. We started and still have an initial $2000 in the CapEx fund with the $500 monthly contribution to it.  I will definitely take into consideration your input when making our final decision.  This is why BP is so great because people can ask and get answers from other investors.  Thanks again!

I do not see what is wrong with buying a turnkey if it cash flows right out of the gate. You will definitely miss out on the value add part of investing and that is where the money is to be made. However, some people do not have the time or energy for the BRRRR strategy. If you are meeting your intended numbers for that turnkey property, do your thing. Most of your CapEx. should be covered for a while due to the fact that it has been fixed and sold as a turnkey. That will allow you to contribute less of your monthly monies towards CapEx. and give you that much more cash flow. Just one way of looking at it.