All Forum Posts by: Kevin Scott

All, thanks for taking the time to answer my questions.  That was the help I was looking for.   I have to get through the holidays before a make the next move.   

Thanks Kerry! I may reach out to you after the weekend.   

thanks, Kevin

Thanks Garrett, those are great ideas. I have a majority of the money but it sounds like using someone else's money is the preferred method although it goes against what I would normally think is the proper way to go about doing this. Just so I have this straight, is borrowing about 10K from an HML to get me over the hump, then using my own funds for the rest of the dp and the rehab a normal approach? I would like to think the purchase price of the house would be below market value but it's on the MLS and in the area I'm looking they don't last long. With this scenario it sounds like the refinance option would not work because any rehabing I do is going to be cosmetic and may not significantly increase the appraisal value. I would not expect to make any money on appreciation; strictly cash flow. Any thoughts?

Stephen, thanks for the great advice. Are these hard money lenders all or nothing?  I would only like to borrow 10k to get me over the hump.   Do these guys do that? 

Thanks gang. I will do some more research on the BRRRR strategy. I really need to try to figure out how one gets their money back with the refinance if the new appraisal value does not exceed the old appraisal value. These are probably class C or D units to start with.

Thanks Ramsey, I've been looking at that option but I can't find any information that explains that process in depth. Everything I read tells one that it is a good option but doesn't go in depth into the steps. Does the bank actually give me money back if the AVR appraisal is actually higher than when I purchased it? What if the AVR doesn't go up but it just becomes more attractive and allows me to get a slightly higher rent or rent it faster than the other multi-family homes in the area. If you know of any great in depth BRRRR articles please let me know; I couldn't find any.

Thanks for the suggestions. Living in it isn't an option.  The hard money lender option keeps coming to mind but I don't know a lot about them.  Does anyone have any thoughts on that option?

The 20% downpayment on my first multi-family is holding me back.  The money is there but with additional money to be spent fixing the place up it is going to shrink my savings quite a bit.  I'm curious to hear what others have done to get around paying that much money up front.  

Thanks for the replies.  I still have some figuring out to do but I like the ideas.   

I’m married, 43, and living in New York State. I’m torn between maxing out my 401k with an annual 8% return or investing a majority of that 18k into real estate. If I max out my 401k, I take advantage of the tax benefits of lowering my annual salary. If I use a majority of the 18k to invest in rental property I believe I can get a better return while building equity in the houses I buy. But I’ll be taxed at a higher rate on my salary. Is anyone in the same boat? Does anyone have any advice?