All Forum Posts by: Jeremy Lewis

Holy... I was waiting for it all to slide off!

If you haven't read Buy, Rehab, Rent, Refinance, Repeat by David Greene I highly recommend it. Towards the end of the book he actually answers this very question. I will do my best to relay that information.

You are looking for several things in a BRRRR, getting your capital out, maintaining some equity, at least an average appreciation percentage and a good amount of cash flow. Now the only part that helps you in a 2008 situation is how much cash flow you've built into the deal. If you have good cash flow, even if you have to lower rents for a while during a down turn you will still at least break even which extends your longevity. If you go from making $200 a month in cash flow to making $10 a month in cash flow, you're not losing money!

David explained it much better in the book and I highly highly highly recommend it. PLUS for the next seven or nine days Audible has a sale up to 70% off on all books.

I would start by talking with several Agents as well as any Property Management companies in the area. These people have their finger on the pulse of the area. After that, go walk around town. Visit the Libraries, Bars and anywhere else gossip may happen!

No congrats are in order, I wasn't able to get my lenders in line so I was standing around holding myself and someone else scooped them up. I am always scoping out more deals, so next time!

I personally don't have any contractors that I can recommend. I am a handyman and I do most of my own work as I build my team.

 I feel that is a good percentage. You have to think though, if you don't cash flow at a conservative amount, then when things go wrong or bad, you're going to be on the verge of losing money every month and you'll question every single decision you've made this far.

This is likely one of the leading reasons to people quitting real estate investing.

 I think that is the most convoluted way to say "fail to plan and you plan to fail." But I like it, and I absolutely agree with you.

 Absolutely, by eliminating around $12,000 in debt we are freeing up over $1,000 a month in capital!

We have. We are looking for Duplexes for between $150,000-200,000 in B class neighborhoods in Ohio.

 Ideally not. Proper inspections should limit anything unexpected showing up after the purchase. But by due diligence I would get ahold of the different county agencies for checking for back taxes, liens and so on.

My wife and I are aggressively paying down personal debt in 2020, with the goal of building our rolling capital, building a team of like minded individuals and ending the year with our first investment property purchase.

I think Tyler is spot on. What amount are you putting aside for vacancies? Capex? Always budget for Property Management, if you end up needing it and you didn't budget for it, say good bye to any cash flow you may have had.