All Forum Posts by: Matt Henderson

Thanks @Jason Wray and @Chris Seveney for your responses. Just wanted to make sure I wasn't missing something.

I'm reading "Rental Property Investing" and Brandon mentions that you should "reinvest cash flow to have interest compound". Sorry in advance for a possible stupid question, however what is he suggesting to reinvest the cash flow in? He never says. Is this meaning to just save the cash flow and "re-invest" it in your next rental property? Just trying to understand what he means and where he means to reinvest the cash flow in order to receive the compounding interest which was described basically like investing in the stock market with an 8% return.

NP. Glad I wasn't alone!

Great feedback. Thank you everyone!!

I'm reading about BRRRR and trying to educate myself as much as possible before investing in my first rental property. I'm stuck on one thing in the BRRRR model with the Refinance. In an example I read, person bought house for $75k and put $30k of rehab into property for a total spend of $105k. The ARV on the property is now $150k. Time to do the refinance. The example says your lender gives you the refinance at 70% LTV of the home ($150k x.7 = $105k). Here is where I'm lost...I realize you would get your $30k back because the $75k loan is paid off and now you have the extra $30k, but now don't you have a higher loan ($105k now vs original $75K) so you owe more money? Doesn't this now increase your monthly mortgage payment? Just confused on this part of the strategy and hoping someone can clear it up for me. Sorry if this seems trivial to some.

Thanks for the response Scott. Sorry if the question was misleading. I wasn't intending to be dishonest or commit fraud. Just wanted to know how to approach getting a loan with the bank as I saw a lot of posts about buying as the primary. Thanks for the info!

If you already own a home as your primary but are looking to buy your first rental property or 2nd home in your own name, do you still list it as your primary even if you aren't going to live there? Or do you need to disclose to the lender that this is a rental property, in your name, but not where you will be living?

Hello,

I'm am brand new to the game and trying to educate myself as much as possible before I invest in my first rental property. I'm considering creating a business to run my RE expenses through. I would most likely buy my first property in my own name. However, can I set up a LLC or business such as a "Rental Property Business" or just a personal business and then run the mortgage payments from a purchased home as an expense through the business? So if I purchase a home in my name but then am using it as an investment rental property, can I run the mortgage on the home through the business as an expense? Can I also expense maintenance, service, accounting fees, etc through the business?

Any advice on this would be much appreciated.

Thanks,

Matt