All Forum Posts by: Madhav Thaker

@Joseph Cacciapaglia: Thanks for your thorough response, this was really helfpul. My main reason for looking at BRRRR was to maximize the small savings that I have. The more I read the more I realize I may just need to take it slow and start with buy and rent properties.

@Luke Anderson: I'm wondering, what percent of your monthly ROI goes to your team? Or maybe a better question, how much do you think you'd save if you were investing local and didnt need to spend so much on your team?

The title essentially sums up the question. I'm sure there are many out there who live in markets that have a high financial barrier to entry and have thought about investing elsewhere. 

As a first time investor, I'd love to hear from folks who have done this. I'd like to know how you made it happen and if you'd recommend it to someone else starting out. 

I live in the LA market with no option but to live in a very expensive area (forced to live close to the hospital!)

Looking forward to hearing from you.

MT

@Paul Shannon - These are great tips. Finding a local investor who is flipping homes is really clever, I'll plan to do that after things get back to normal. 

@Todd Rasmussen - Well, I'm assuming I will make money on the refi after the rehab has been completed and assessed. I believe we are on the same page, I'd want the initial purchase, rehab and refi to happen in a few months. 

That's an interesting tip though, I would have never thought to reach out to the county assessor. Thanks!

@Paul Shannon - I'm curious, do you have any useful tips for analyzing rehab budget and ARV?

@Todd Rasmussen - Haha close, we live about 1 mile away from her hospital. 

@Bill Goodland - Wow, these are some incredible tips. I'm curious, do you also have a vetting strategy when working you start working with a new contractor? It's evident that the success of a BRRRR deal can hinge on the quality of your contractor.

@Daniel Hyman - That's great to hear, I feel fortunate to have found this early on. 

@Bill Goodland - Thanks for the advice this is really helpful. Do you have any tips on finding a below market value deal that requires cosmetic rehab?

@Nick Hedberg - Thanks for your thorough response and thats a great tip. Rehabbing homes is definitely new to me to anything other than a cosmetic fix would be tough. I have a follow up questions: 

-  Fixing up the house yourself is impressive, I would definitely have to go the contractor route. Now, would you recommend I get a contractor to handle the entire project or manage the repairs myself and directly work with the painters, repairmen, etc? I've heard contractors can be pretty expensive (20% extra).

- A big part of BRRRR is the refinancing portion. With a potential housing market crash, would you suggest I wait for a while to purchase so I'm making money when I refinance?

And to answer your questions; 

- I live in WeHo, I work in Burbank and typically hang out in the WeHo/SaMo area.

- Now, the tricky part is for my first deal I want to spend around 500K. I'm really open to finding a deal within a 1.5 hour of my apt. 

@Michael M. - Yep, I'm looking at the LA/LA-adjacent markets. Unfortunately, House Hacking isn't possible since my SO needs to be within 15 minutes of work and my area is too expensive. However, I still am interested in the idea of purchasing a duplex, what neighborhoods would you recommend looking for a duplex? 

The title and description essentially sums it up. What advice would you give to a first time buyer? Do you think it's advisable to pursue a BRRRR right away?