All Forum Posts by: Mary Baccellieri

@Michael Marrero

Yep! NYC is so expensive that even just to do a flip, it takes a lot of money to purchase a crap house, never mind the rehab portion on top of that. I listen to a lot of the BP podcasts and it seems people like doing BRRRR deals in that Philadelphia/Southern Jersey area. I really haven't looked into too much but maybe I should consider. I'm looking to move closer to my parents in Monmouth County in about a year so maybe I should explore the Southern Jersey option! (Won't have to pay a bridge toll to check in on my property ;) )

@Whitney Hutten

Thank you so much for the guide- I will check it out!

@Rich Ramjatan

Well I was thinking of flipping a duplex or triplex and living in one of the units. I want to move near my parents in NJ (Monmouth County area). The issue with that area is houses are already pricy and it’s not a very renter friendly area unless I go a bit more north towards South Amboy/Perth Amboy area.

@David Chapoell

That is awesome!! So happy for you and that it's all coming together. I'm sure the next deals will go even smoother now that you've built your team. I just bought my first fourplex last year so I don't have quite enough equity to do a HELOC right now but eventually that will be my goal; buy and rehab using my own money and the HELOC, refinance and pay the HELOC off. Fortunately for you and I, our houses are in areas that appreciate well :)

@David Chapoell

Wow!! Thanks for sharing that. It's amazing how things unfold once we start taking action. I know part of me not exploring the out-of-state investing is also because I know it takes work and effort to do the research to find the team members. You were willing to put in the work and now it's paying off for you, which is awesome !! Are you doing a BRRR deal? Or because the properties are so cheap, you're able to use personal funds?

@Lee Ripma

Thank you so much for this advice Lee! I honestly have not thought about that as a possibility but you’re right, I can eventually refinance and pull my money out to reinvest but there’s a lot less pressure because I’m not dealing with buying a house, rehabbing, renting and then refinancing all within a 6 month time frame - talk about stressful haha. The fact that I will be using my own funds (aside from bank loans) makes me a lot more comfortable too.

I'm halfway through David Greene's BRRRR book and there are definitely a lot of tips in there that are still applicable and like you mentioned, adding value through adding bedrooms, bathrooms, kitchen and bathroom upgrades.

@David Chapoell

Hi David - I haven’t really given that much thought yet. I know investing out of state in low priced markets can be beneficial for me (especially on a NYC salary) but I know it’s crucial to build relationships with agents who know the areas well and build up my core four team. I think i would need to speak to more people who have successfully executed out-of-state investing before I explored that.

@Lee Ripma

It's pretty refreshing to hear someone say BRRRR is overrated actually haha. I feel like it sounds very great on paper but when it comes to execution, I just have a lot of apprehension and areas of what could go wrong. I know BRRRR can build you up quick I'm also okay with not having a huge portfolio and I'm not looking to "quit my day job."

An option for me would also be to buy something on the cheaper side that needs work but not so much work that it’s not livable and the bank won’t give me financing. Is that what you are referring to doing? I’m also not afraid of a rehab, especially if it’s something primarily cosmetic. I fortunately have a go-to handyman that I can rely on.

@Lee Ripma

Hi Lee- I agree with you. I think using my own funds would prove to be a lot safer and just pay myself back on the refinance. I think my best bet is to simply save my money and wait til I can use my HELOC on my current property. I guess you can say I'm a bit antsy to get started but I think in the long run, saving for an extra year or

two in order to be able to use my money will be worth it.

@CJ M.

Hey CJ- thanks for breaking down your numbers for me. I think I'm also a bit skeptical with HML because I'm in an area where even crappy properties are in the the 250-300k + range, not also including the rehab. I know Brandon always says everything is relative but it's a bit scary to think about borrowing that amount of money with such a high interest rate.