All Forum Posts by: John Thompson

Thanks Everyone for all the input. This is why I love the BP community, you guys are super helpful are just full of wisdom... Thank you all. and have a Great New Year

@Isaiah Williams appreciate the accountability check....my mindset is pretty clear on re-investing. to avoid the whole temptation. to just stuff it under a mattress is as I get close to listing this house ill start pursuing a deal in Milwaukee with the goal to get under contract as we close on this house. This way the proceeds are committed to something, whether that be a DP or rehab costs on whatever I look at in Milwaukee. 

Are you guys seeing the Cash flow on new investments to be what they use to be before covid? From the webinars Ive seen some investors are looking less at cash flow and more long term appreciation on investments. Some have even had strategies that look as investments that only cash flow $50-$100 per door and being ok with it because of the long term appreciation they gain... Make sense... am I off my rocker here

thanks @James Konvalinka i think where my thought process is now after reading everyone’s thoughts is to sell the Ohio Property which is my current primary residents. We are under contract for a new primary residents here in Milwaukee. With the equity i’ll make off the sale of the Ohio Property i’ll have cash available to secure my first deal here in the Milwaukee once i research and learn the market here. Im still new to all this but after sitting on the sidelines hoping “one day” i’ll start investing i think i just need to get in and just take the plunge. 

Thanks @Joe Villeneuve Ive been leaning towards just selling it but an using that to fund my first deal in Wisconsin once we move. I just wanted to bounce this idea off a few more experienced guys and get some opinions.

Hey guys, long time BP member just refreshed my Pro account, but have not pursued any deals yet… My question is this… We are getting ready to move from Dayton, Ohio to Milwaukee, WI. I own a 3b2b in Dayton that I need to make a decision on. Do I sell this property while the market in that area is pretty hot and pocket 20k-30k. Or rent this house out and use it as my first rental property? Ive run the numbers and outside of being 400 miles away renting it would net me 108$ cash per month after P&I, tax, maintenance, CapX and vacancies. 

My concern is being 400 miles away if anything goes wrong with the property but i did not know if holding it would help with future deals that i want to pursue here in Milwaukee as it pertains to funding deals… Or would having 20-30k as cash in my pocket be a better route to pursue my first deal. 

What are your guys thoughts?

@Junior Soares 

Thanks for the tip on brining my own money to the table to look more attractive to lenders. Is there a certain percentage I should look to bring when seeking private money? for example: $57,000 property with $30,000 in rehab to be privately financed in a BRRRR strategy. Is there a target percentage I should look to bring to the table?

@Jan Kerr

THANK YOU for that insight. I’ll defiantly looking into take that kind of financing and rehab approach. I know at some point I’ll have to just jump into the process knowing I’ll make some mistakes along the way but that’s the point right? Learn from experience, get one deal done without loosing the farm learn and do better the next one.

Much appreciated

@Jermaine Chad Ingram

Thanks for all the advise got some more work and education to do.

@Jermaine Chad Ingram

I got the ARV from other houses of similar size in the area so I went off those numbers not factoring in that my property would probably be valued above those because it would be rehabbed. Not sure if that's a good strategy. And no I don't. Have a contractor yet to help me with potential rehab costs yet. I suppose at the end of the day there are so many steps to getting started I'm wondering what the correct order would be. Example

1. Educated yourself

2. Final a deal

3 find a contractor

4 find financing

Etc etc

@Tim Herman

What is a good percentage to make this deal potentially active to an investor. I put 4% interest and 5 points in the calculator hoping I would get feedback like this. Also on the rehab I have no good metric to measure potential unforeseen cost maybe adding 15% to my estimate would be safer? Thoughts

JT