All Forum Posts by: Medi Sarwary

@Bjorn Ahlblad @David Detweiler

What sort of funds are you guys investing in to stay relatively liquid for a deal? I have some of mine in vanguard ETF's but I'm wondering if I need it in a pinch for a deal how accessible it would be..

Sorry for hijacking your post Andrew :)

Well put. My risk tolerance is low so I'd be more inclined to go 10 door route but I think initially leveraging is the way to go.

I'm in a similar situation. I use vanguard and love it but I haven't made many transactions so its hard to say how smoothly that would go. 

I think I will use a money market account in conjunction with a fund from fidelity/vanguard.

Its really terrible. I hope the fact that its centered around whiskytown helps Calfire with water. 

I think it varies city to city. Some places are probably due for a correction but the variables are so different for each region. 

For example, in the Bay Area the workforce has been blustered by many H1B visa workers the past decade. Many of these Individuals prioritize property ownership to the extent that families back home will pool their money and sometimes pay all cash of a SFH. This can change with new immigration controls.

That being said I really doubt the next dip will be anywhere near as severe as 2008. The big variables will be Immigration controls, the tech industry relating to California real estate, and oil/petrol for midwest states. 

@John Leavelle Hey John, thanks for your response. 

I think the properties I was looking at were simply not suitable for the BRRR strategy like you mentioned. I would like to know how to find these distressed properties, do you normally just look at typical MLS websites? I want to do the numbers on potential BRRR properties but I'm having trouble finding examples...granted I'm looking in CA.

 @Aaron Cullen that's interesting, Ive never heard of the advertising before. So the biggest variable for you is the rehab cost. You must have a reliable contractor I gather?

Typically whats the interest on a hard money loan? After you get your money out in 6 months you can realistically expect to pay the entire loan and the full renovation cost? 

@Mike V. Hey Mike, that BRRRR sound ideal. So the bulk of the appreciation was created from the price you purchased and the rehab. Was it your plan from the beginning to BRRR this property? Also why did you put so much down on the place?

From my initial thoughts I didn't think it was realistic to have 1500K in cash flow after the refi but maybe this is much more common than I though hence the popularity of the BRRRR

This is my current mindset as well. I want to be realistic so I dont see my rental income dwarfing the mortgage payments so much that its worthy of a refinance. If I'm making 1K positive cash flow after rehab, in 5 years that amounts to 60K, but if you pay it towards the principal in another 5 years your mortgage is gone and your cash flow is more than doubled. If the market crashes at any point, you can also refi then and skillfully soak up more units at a lower price point

Your absolutely right. The root of the issue is whether the investor can consistently make those 10-15% returns on forthcoming investments. If that's the case, BRRRR is a no brainer and the interest payments are leveraged for greater cash flow. On the other hand I'm not sure a new investor can realistically expect those returns in some markets.