All Forum Posts by: Doug Hardy

 Hey Tomas, I just sent you a PM.Congratulations on your success so far! 

Hey Richard, I sent you a PM. 

Hey Stephen, congrats on your success so far! If you decide to move forward with a 1031 exchange, I would be more than happy to hop on a call with you and walk you through the process. 

Hey all, newbie here looking to bounce our plan off of the experienced community here at BP. (I'll be going Pro here soon)

Quick about me - I have a full time job, which I intend to keep, and a small side business. Both entirely remote. I am utilizing real estate to begin building financial freedom for my family and then generational wealth for my kids to eventually enjoy. I love my W2 and don't see myself leaving unless we get acquired. My wife and I are both 30 and have three small children. 

We are refinancing a rental property and taking $100,000 from it to begin pursuing long term buy and hold real estate acquisition utilizing the BRRRR strategy. We already have the legal structures in place to hit the ground running once the refinance comes through, which should be late June to early July. We have a hard money lender and a portfolio lender lined up to fund our deals. The plan is to buy distressed off market properties with cash using the hard money lender, then using our $100k pool to fund the hard money payments and rehabs until we can rent, refi and repay the hard money lender. We will be pursuing SFH and Small Multi Family, though multi family is more limited in our target market.

Our target market is a very unique one in that the median household income is pretty high at over $100k per year and housing is extremely limited geographically. People often commute 1-2 hours every day because there's nowhere to live. It's also an expensive housing market with the median home price being ~$500k. Job growth is steady but the city is physically incapable of growing geographically due to the ownership of the surrounding land. Overarching point, steady demand and very limited supply. Rental market is very strong. 

1) What, if any, advice would you give to this strategy? 

2) Removing all of the previous context, what would you do over if you could go back and start with $100k? 

Thanks in advance. I have been reading, listening and talking with other investors for the past 18 months in preparation for this. I'm more than ready to hit the ground running! 

Thank you both for the information! 

I have partnered with a capital investor to start BRRRR-ing properties. He already owns a rental property that needs some work. To begin, we are looking at BRRRR-ing his current rental property but we would be skipping the "Buy" part since he's owned it for a long time. It's not a total piece of crap, but it certainly has a lot of room to improve the value given the market that it is in. My question is - Can we use a HELOC to fund the rehab, then cash out Refinance the property at the AFR to pay back the HELOC and use the remaining funds to look for our next BRRRR project?

Our original plan was for him to fund the rehab with cash, then ReFi it and use the ReFi cash to go find our next BRRRR property. If it's possible, using a HELOC seems like a better way for him not to have to use his personal cash.

Thanks in advance for your input!