All Forum Posts by: Luke Spooner

@Andre Crabb 

Miami does seem pretty tight and I can imagine that you may have to compromise on location, which is something you definitely don't want to do.

Have you found anything further North or do you have any recommends around the Ft Lauderdale area?

Good afternoon BP! 

I'm reading more now than I ever have, trying to get myself in the best place possible to start my 1st Real Estate venture. 

My Road map is almost complete but I wanted to see what the community says about the correct metrics that I should master, to accurately measure wether a BRRRR business model for an Owner occupied Duplex is successful or not?

Is it just Cap rate, Cash on Cash return and the Equity Multiple or are their other integral parts that I'm missing?

Thanks for your help gang! 

@Curt Davis

The "idea" is to move into a place that requires the basics doing, to turn it around and make it more than liveable. 

I can fit bathroom tiles, lay flooring in necessary, paint, Install kitchen units and put some finishings together to make the place look great for a minimal cost. (I believe anyway) 

My partner and I are potentially factoring in the minor refit costs into the Private loan or alternatively, can't we have that put into the mortgage arrangement with the 203k refit clause?

Thanks Curt! 

@Derek Dombeck

That's an interesting spin, I didn't realise that. 

Thank you for bringing that to my attention. 

Although my Private money lender won't mind being put "2nd" in the payback scheme, up until we can refinance and pay their investment back with interest within the 2 year bracket that we are in the process of arranging. 

All in all though is this the correct use of the BRRRR method?

Thanks Derek! 

Hi all, 

I'm just looking for a bit of insight and more of a precise breakdown of the refinancing section of the BRRRR method.

As I think I have a way of using private money lenders, to loan me the deposit to buy an owner occupied duplex, on pretty favourable terms but I'm unsure how to structure the rest of the financing and I'm just looking for some clarity.

I believe I can borrow around 20% of the total to get a solid deposit down and then my question is, do I then go to the bank on top of that for loan for the mortgage?

Then later on down the line (1 year I believe is the time required for a owner occupied loan to refinance) once the property is Renovated and Rented out, I then refinance and pull some of the equity out of the house's new ARV and pay off my private money lenders?

Having then paid them off, I'm left with the Bank's mortgage and hopefully some cash left over to Repeat.

Is this the proper use of this method, in its basic form?

Any comments are welcome, 

I feel like it's a pretty school boy question but there you go.

Cheers! 

Luke 

Thank you @Thomas Franklin & @Alim Abrahim for your insightful input! 
Thomas I have considered almost all the factors that you speak of but in regard to buying or not buying in the name of an LLC. What is the best way to protect yourself in getting a Owner occupied duplex and renting the other unit out?

Alim, you make a fantastic point of putting the importance on "where" to buy. Where would you suggest to look down in West palm, that cash flows nicely and is in a nice, liveable area and the same question for Fort Laduderdale?

Thank you for your input guys, this is great!

Thanks for your reply Luis and Andre!
I love the BP premise, the community and the wealth of knowledge it provides. 

I want to be based in or close to Fort Lauderdale ideally as my profession takes me there (yachts).

I can see that house hacking is a great way to start my portfolio as it gives you that positive cash flow, to not pay your own rent and thus save. (But only if the numbers work) 

I'm currently just trying to find the right areas to invest for young professionals/ young professional families. 

But my demographic may also need tweaking. 

So much to consider but it's difficult when you're not on the ground. 

Hi all! 

My name is Luke, 

I'm knew to the Bigger pockets scene and I'm looking for some insight into House hacking a Duplex down in Florida to start out my Real Estate journey.

 I wanted to see if any other investors have done this successfully and what the scene is like?

Specifically around the Fort Lauderdale area down to Miami.

What are some of the better areas?

Is this a wise market to house hack as young professionals for young professionals?

Any insight would be much appreciated! 

Cheers