All Forum Posts by: Kyle Clover

Hi,

What website/online resources does everyone use to help determine the crime rate in a neighborhood? Looking to purchase my first property. Thanks!

Hi everyone, 

I'm in the process of attempting to find my 1st rental for the BRRRR strategy and I wanted to make sure my math was right regarding the process.

For example,

If I purchase a property for 150K with a 30K rehab, this would make my total investment 180K. I would then initially obtain financing through a hard money lender who wants 20% down on a 180K loan, so I've currently invested 36K into the BRRRR (20% down of 180K hard money loan).

When I go to refinance out of the BRRRR through a traditional lender, I can obtain a loan with 75% ARV of the property? In the example above, would the ARV of the completed BRRR have to be 240K, so 75% of the ARV of the property would equal 180K? That way I could put a loan on the property for a total of 180K through a traditional lender, pay off my hard money lender, and recoup my initial 36K invested into the property. This would be my break even and I could then use the 36K to repeat the process on another property.

Thanks for your help everyone. I have been saving for a while so I want to make sure I understand the math so this first BRRRR is done right!

Thanks. That's a good point. I didn't think to include utilities into the FMR.

Hi everyone,

I am attempting to find my first rental property which I may make Section 8. With Section 8 in my area, HUD has a FMR of $2,009 for a 3-bedroom house. On rentometer, the area I am looking in has an average 3 bedroom rental income of $1525 (not HUD/Section 8). My question is if I purchase a property in an area with normal market rental of $1525 could I still make the property section 8 and get a FMR of $2,009 from HUD?

Thanks for your time! I look forward to hearing from you guys!

Hi,

I'm new to real estate investing. This would be my first property. I am interested in buying a 2 unit property and renting out one unit and living in the other, or possibly buying a property to rent. What are the best areas in Baltimore that are cash flow positive and have a stable rental occupancy rate? I was possibly looking at Canton, Fells Point, Hampden, Charles Village, Reservoir Hill and Dundalk. Any suggestions on areas with lower fixed buy-in costs and stable cash flow? Would a property in Parkville and Dundalk be a better idea than a property in the city? Any thoughts would be appreciated. 

Thank you for your help as I start this process.