All Forum Posts by: Joel Culler

The scenario: You magically have 80k to invest but a few limits. You cannot invest in rentals or house flips, but anything else is on the board. How would you use the money?

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Originally posted by @David M.:

@Joel Culler

Your plan looks to be the most viable. You probably don't realize it, but you really don't have any good loan options. Pre-COVID-19 you can't get conforming loan for less than $50k. I think that's been raised a bit to $60k or $75k. Since your property values are so low, you couldn't get a loan anyway. So, if you have the cash, go with the standard brrr method.

Thank you, and no that hadn't occurred to me but that does make sense.

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Originally posted by @Jon Crosby:

Sounds like a basic BRRRR strategy from what I can tell? If you are finding homes for $50k surrounded by $125k homes and they only need $30-40k in rehab, then seems like those numbers would make sense. Sounds almost too easy to be honest so just be thorough on your due diligence and inspections with those properties. Yes, you will likely have to wait at least 6 months before you can refinance your money back out to repeat the process (the last R in BRRRR) and how much you can take out is going to depend on the appraised value at that time. Additionally, you will want to make sure your property still cash flows under the new refinance PITI (principal, interest, taxes and insurance) amounts.

Best of luck!

Thank you, and yes these are estimates. I will hire an inspector before moving to much further, but my question really involves whether it would be smarter to only put so much down on the property and take a loan on the remaining purchase price or if a cash buy would be the wiser move.

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Hi Everyone,

Like many others I am new to this form of investing. In the past I have focused on dividend stock, primarily REITs, but would like to move in the realm of real estate investments. I have around 100k that I can invest of my own money and I live in a relatively small town with properties values averaging 90k to 200k, though the price range of 125k to 150k would be the majority of homes in town. I have come across a few listings that needs some work, are listed under 50k, and the comps surrounding them to be at or above the 125k mark. To look at one specifically: 3 bed 2 bath needing average rehab that is listed at 44k. My thoughts were to purchase with cash, use 35k for repairs ( or less if possible of course), and then rent at 700/mo. After the repairs I am hoping the value to be around 120k. I planned to wait about a year to do a refinance and pull 70k back out, leaving roughly 15k of my own money in with roughly 50k in equity. Is there a better way to do this for my first property?

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All Forum Posts by: Joel Culler

Joel Culler has started 2 posts and replied 4 times.

Post: Given 80k, what would you do?

Post: All Cash or Leverage on First Rental

Post: All Cash or Leverage on First Rental

Post: All Cash or Leverage on First Rental