All Forum Posts by: Luke Davis

Hello. My wife and I have found a potential BRRR property in the Pensacola, FL market and would really appreciate insight from the group here on if these numbers look reasonable and if it overall looks like a good idea. This is our first shot at a property so we'd really like to get some experience in while also making some of our money back in the cash our refi. I'm sure there may be plenty of other metrics we are not taking into account here and if so, please let us know what other critical items we should be looking at!

 Looking in Pensacola, FL area but my old home is in Tampa! Lived there for 7 years.

So it seems the better options in front of us is doing a cash-out refi of our old primary home to pull enough equity out to fund the down payment of the investment home + any rehab costs and then BRRR that to get some of our money recouped?

The biggest obstacle I'm encountering now is the making up the initial down payment. Even a 200K home (fairly low dollar in the FL market) requires a 40K down payment which is tough to come up with without a hard money loan/HELOC combined with a conventional loan which would then be tough to make any cash flow. If you cannot BRRR the property to get some of your money back, then most of your up front costs will be stuck in the deal for a long period it seems? I am preferential to medium/long term rentals so my exit strategy would not be applicable for many years.

I make a comfortable living and have a surplus of money saved up but don't want to liquidate my entire savings accounts so I can get just one singular 200K property that may cash flow for a couple hundred bucks over the next few years.

Am I missing something or being overly cautious?

Newbie investor here looking to do my first actual investment purchase. Currently looking into doing a BRRR or a buy and hold in the FL market. My wife and I have our old primary home that we recently moved out of and are renting that has 150K+ in equity that we could tap into via HELOC to fund the down payment for our next purchase and cover the remainder with a DCSR or Conventional loan?

Curious what the more experienced folks here think is the best strategy given the current rate cuts happening. Having two open loans for the property is not ideal as that's double closing costs but maybe that is a fairly normal strategy?

Any advice is greatly appreciated!

Hello everyone!

I wanted to post here and get thoughts on some more specific ways to find good deals. My wife and I recently moved to Raleigh/Durham, NC from Tampa, FL and we still own and rent out our home in FL. Now that we've got a taste of what real estate can do for long term wealth and financial freedom, we're hungry for more medium/long term rentals!

Over the past few months we've educated ourselves on BP, watching the podcasts, reading forums, and educating ourselves via other content from others. We've had heavy doses on topics such as finding good markets, lending, analyzing deals, managing tenants, legalities, etc. We also have the added experience of each purchasing a home ourselves and self-managing our other home and tenant in FL.

Over the past few weeks, we've been going through many medium to large population areas in FL and NC that we know are hot spots for people to move to and rent. However, time and time again, as we run the numbers we are struggling to find any properties that are even close to providing a decent CoC return (5% or more). We have run at least a hundred at this stage and majority are negative CoC after analyzing. It seems that, between the low inventory, high interest rates, and still somewhat inflated home prices, you can't get a good deal unless you're buying cash or find a true needle in the haystack. Not to mention the unknowns that lie ahead in 2024 for housing prices that could drop, interest rates maintain at current level (6-7%), rental prices coming down in 2024, etc.

We are both well versed in business and I personally work as a Project Manager in the Construction industry so I have a good look behind the curtain on construction prices, activity, etc.

To those experienced here - what are we missing? Are we focusing too much on populated areas and should look more towards smaller, rural areas? Should we focus more on distressed properties that are not move in ready?

We'd really appreciate any knowledge or feedback anyone here is able to give - we have a goal this year to purchase 2 more rentals properties and we're excited to keep up the momentum.

Thank you!