All Forum Posts by: Kevin Santos

Thanks @Andrew Garcia! I'll look more into it! 

Hello,

I am a new investor that is looking to purchase his first rental property. I am only working part time and taking classes. I have money in my savings and from stock / crypto investing that I plan to use towards my down payment / closing cost / repairs in needed. I wanted to reach out see what financing option there are for part time / unemployed student such as myself. If any one has any suggests as to what I can / should look into please let me know! Any insight will help!

Thanks!

Thanks @Bob Okenwa I appreciate the insight. I guess I will have to look else where.. 

I am looking to buy my first rental property and BRRRR in Cleveland. A lot of the deals I liked seem to already have been newly renovated and fully occupied. This does seem nice bc I am new and these would be relatively easier for me - since there isn't a lot of work involved. But I am not sure how much value I can add. I have $50-60,000 in cash I would like to use towards acquiring rental properties, and I would like to be able to refi / pull out my principle / "repeat." I have a goal of making $3,000 / mo or having 10 doors, and "repeat" feels like a pretty key part in reaching that goal with my starting capital (haha)

I was thinking that maybe I can just add value to the property but touching up the outside / exterior - landscaping (cutting down trees, planting new plants, etc), exterior paint, repaving the driveway, etc. But I was wondering:

Would I be able to add 25-35% in value to the property just by renovating the exterior alone? I am using 25-35% since that is what I would need to get to "75% of ARV."

Please let me know if this is possible. If so, I may end up pulling the trigger on my first property sooner rather than later ;) 

Any insight will help! Thanks BP! 

Quote from @Tyler Burks:

Hey Kevin! Its great that you're diving into the learning materials to get an idea of where to start. Nothing beats getting into the real deal when it comes to learning though! With what you have saved up you can certainly get started with a BRRRR strategy. You'll need to work backwards on what your buying power along with closing costs and that will tell you how much of a property you can buy and how much you can afford for carrying costs during the rehab. Then go out and start checking out properties and make offers!

 Yes Tyler! I agree. I have always learned better by doing, but definitely find myself in between feeling like I need to at least finish my books and asking myself if I am just stuck in "analysis paralysis" phase. I appreciate the response - it makes me wanna just pull the trigger and get in the game lol 

Quote from @Zach Norton:

do you own your own home? could you take out a HELOC to fund your first BRRRR home/duplex? the strategy there would be take out the HELOC, purchase your first project with cash, renovate it, rent it, then refinance through your lender. you will have to be spot on on your numbers as the refinance will only get you 75%-80% ARV. you then pay off the HELOC and move on to the next project and repeat.

Thanks Zack. No I do not own my own home. I rent an apartment.. The HELOC does sound interesting. Might be something I can consider once my lease is up. Hopefully I will be better w my numbers (i.e. analyzing deals) by then too. THANKS!

Quote from @Nicholas L.:

@Kevin Santos the more cash you have, the less the total outlay on your BRRRR is going to be. This is because if you borrow money to BRRRR - either for the purchase or the rehab - you will pay both up front financing costs as well as interest to service the debt during the rehab.

Having your own cash eliminates those expenses and lowers your total outlay - lowering the likelihood of "leaving money in the deal."  It also reduces the risk you'll be stuck in a higher interest loan if you have a problem refinancing.

Can you house hack - or better yet, house hack a BRRRR? This is an even lower risk strategy.

Thanks Nicholas. Unfortunately I don't think I can house hack - at least any time soon. I just renewed my lease at my apartment, so I will be here for the next year :/ 

Thank Karl! I appreciate the insight. Glad to see its possible with an amount that is close to what I am saving towards! 

Hello, I am new to real estate / bigger pockets / etc. I wanted to ask: 

How much is a good starting capital for a new investor to start investing in a long term BRRRR strategy? $50,000? $75,000?

I am currently making a career change and thought real estate might help me find financial independence, and feel I need to start making passive income soon since I am currently unemployed / going back to school. I am starting from scratch and have read "million dollar real estate investor." I am currently reading "BRRRR," and plan to read "long distance real estate investor" next. Still a little overwhelming, but am looking for a markets to start (AZ, PA, OH, etc). I have money saved and in the stock market / crypto. I am thinking of selling soon to fund this new real estate venture of mine, or should I wait to let things appreciate more until I get to $75000. Any insight will help.

Also, I had my eyes on long term BRRRR strategy but am now being told that short term strategies might meet my goals better - passive income / financial independence. Any thoughts / insight would be greatly appreciated. Is short term a good route to go or should I stick with long term BRRRR? Which strategy is better to start with my FIRST purchase? Are there books / info on short term rents I should look into?

Quote from @Mackenzie Grate:

I think there aren't many responses because the answer is "it varies." All this depends on your level of experience both with renovations, property management, your lenders ability to move quickly, your contractors ability to get the work done, the scope of the work, how long it takes to close a loan in your state, etc. 

The one thing I do know, is whatever you estimate to be the time, add a 2 month buffer zone at lease, and maybe 3 with these cargo delays. 

You will learn with the first one you do. Map it out to start, and just like a budget, add a "time contingency" to your schedule.

Good luck! You can definitely do this! :)

 @Mackenzie Grate Thank you so much for your response. I appreciate the insight and encouragement!