All Forum Posts by: Logan L.

@Jaron Walling thanks man, that's a great idea. I know I need to build my "core four" and hopefully between an awesome agent and scouring Zillow I'll be able to find a distressed property that fits the bill for a good BRRRR!

@Jaron Walling Hey Jaron, firstly, yes I ran the numbers for our current house and it actually cash flows very well on paper.

In terms of the investment strategy, my wife is pretty hands off honestly, but supportive of what I choose to do and I am leaning toward BRRRR right now because of the ability to recycle that capital. Eventually I would like to do commercial REI, but that's a few steps ahead.

As for the new house that we're buying, he have no intention of ever making that a rental. It is a home that we intend to live in for up to 10years at which point we'll sell. Also, it's important to note that we are buying the house with zero money down (military - VA loan), so that's not eating up any of our capital.

@Joe Villeneuve haha that’s a good question. It was my first property and when I saw “typical,” I didn’t have a reference point to adjust my numbers to. It was basically just a guess based on percentages that other investors deemed “normal.”

@Andrea Lane thanks! The current rent for this house is low for the area, once I adjust that I will be able to add a management fee and still improve the cash flow a bit. Thanks for your reply, I’m excited to start buying more!

@Evan Polaski Thanks for your reply! That makes sense, I will start to add a property management fee to pay myself. Also thank you for clarifying the CapEx/repair costs for me. I have seen posts that just use "x" percent each month without much explanation. I appreciate your help!

@Pratik Shah I actually bought the property with no money down.

@Pratik Shah

The house was built in 1974 but fully renovated in 2019. I believe the roof is about 7-8 years old. I replaced the HVAC when I bought the property. I also thought 20% between maintenance and CapEx was conservative but I guess I wanted to err on the sage side.

@Joe Villeneuve I just searched the forums and saw that those numbers were “typical” to be honest. It was my first property and I didn’t know what to expect. I feel that I am able to refine those numbers a bit now.

***Edit*** I partially answered my own question. I added another 10% expense for regular maintenance and I’m still at $156.25

Hey everyone!

I am a fairly new investor located near Fayetteville, NC. My wife and I currently own two properties, one rental and our primary residence. We are going to be going under contract on a new primary residence soon for about $375k. So in the near future we will have our home, two rental properties (both single families), and almost exactly $100k in savings. We are planning to set aside approximately $15k for new furniture, house-related items, etc, and we want to keep at least $30k in reserve. So with a working budget of $55k, should I look for BRRRRs myself, take on a partner, wait until I have more to work with, or (insert your suggestion). Thanks in advance!!