All Forum Posts by: Michael Hopkins

Thanks @Andrew Syrios. Yeah I was misleading myself calling it a BRRRR when really it's a buy and hold. In this market area just recouping my Reno cost will be a win imo. This is long term strategy in a nice neighbourhood, so hopefully bringing along great tenants. Hold for a few years and then refi again to buy another. My goal is to have the nicest duplex's in the city. Then my brand will help attract those JV partners I'm going to need in a couple years to continue to scale.

@Chris Baxter

Was just typing this up when you replied! I just realized it's not a BRRRR, but a buy and hold. I'm missing the last R; Repeat. But after the refi, I can only pull out 80K by my numbers. So I would then be in for 110K.

Maybe just easier buying a turn key for 550K. In for the same amount but no Reno to deal with. Unless I really make the budget work in my favor on the Rehab and do more of the work myself to save the cash.

Thanks, @Chris Baxter, as always!

But when I refi after, say 8 months. Won't I have $190K in equity now? 90K downpayment + 100K appreciation from rehab. Won't I be able to pull back out my rehab costs on the refi?

Plus that rehab now lets me get top dollar rent for both units. If I'm looking now long term hold, is that not a good idea/deal?

Question regarding the Perfect BRRRR Deal. Just going through the ARV/FMV research. Of course the perfect BRRRR deal is to recoup all your money invested. Down payment + rehab costs + holding, etc. In the market I'm looking the numbers don't quite follow those guidelines. What if you only recoup your rehab costs? Both units in duplex are cash flow+ after all expenses. But you're still only in for your 20% down payment, closing/holding costs, refi costs, etc. Is that considered a win?

I'm looking at a SF and performing a MF conversion. Listed at 400K. Most likely go for 450K in our current hold offers/multiple bids world. Say 90-100k rehab costs. Should be able to refi to reach an ARV of 550K. Both units would be cash flowing $184/unit/mo. After all expenses including, capex 5%, property management 8%, maintenance 5%, taxes, insurance, utilities, etc. I estimated most costs, rent, etc. on the low end. My calculations say a CAP rate of 4.8% and COC of only 2%.

Would this be considered a good deal in Canada? Is anyone here doing deals with these kind of numbers? Would love some feedback. Viewing the property Saturday and they’re holding offers till Tuesday.

Thanks! :)

Would love to do this! ... but Friday is no good for me. Will be too busy at work before a long weekend. How about next Tue or Wed?

@Shib Dutta No. If you upgrade to BP Pro you get unlimited use of all their calculators. You get 5 free before that. DealCheck is a completely different website. There might be advantages of one over the other. Try them both and see what you like and don't and what you need and don't need.

Good luck! I see you're in Mississauga. Are you investing in Peel or elsewhere?

  Hi @Shib Dutta ... I was using DealCheck. That is just the free version but for what I've needed that has been enough. Down the road upgrade or finally get off my wallet and go Pro here on BP.  I maxed out my free BP caclulators in no time!

Has it been 10 days since I started this thread?  Wow.  To think I've purchased 4x2 multi units and cash flowing crazy since then.  OK, I haven't. But I think about it everyday, almost all day. Covid sucks and meeting up not a great idea right now.  What do we do?  A zoom meeting?  Awkward but maybe a good option.  Or does anyone want to meet up still?

Thanks, @Sue Hough.  I was actually just picking numbers out of thin air to be honest!  Basing my numbers purely on 60 min HGTV shows.  It looks so easy.   Good strategy?  ;)  To be honest I was planning on doing a lot myself, or at least hiring the trades and running the project myself.  Thought it might be worth the work.  Actually starting to compile more solid numbers, so next time I'll be more informed on cost and my budget.

@Nik Krohn  I ended up not putting an offer in.  I'm recently really debating the whole turn key strategy vs. the Brrrr.  My whole thinking with the unfinished basement was to do the work, then refinance.   Also fixing up the upper unit.  New floors,  paint, etc. to push the appreciation.  Then refinance to cover the rehab cost, minimum.  Adding more equity with some extra work for a few months.  But now, I'm starting to look in another market where.  Almost turn turn key, cash flowing 500-600/mo.  For almost the same purchase price.  Both locations are out of market for me, so obviously the second option will be much easier.