All Forum Posts by: Michelle Herschend

@Jesse Castro yeah, I can see the equity piece. Using those numbers, though, if I get an 80% mortgage on 200k, at 3.5 % a 20 year am, my payment is going to be around $930. So how can I cash flow if my rent is in the 900s? 🤔

Ok I feel like the math lady meme but I am not understanding how BRRRR can work and still cash flow with a 20 year loan (which is what my lender told me we could get with an LLC).

Are y’all doing it in your personal names and getting 30 year loans? Or getting killer deals on the front end and not mortgaging as much?

In my area a 120k 3/2 SFH is going to rent for around 900 a month more or less. After mortgage, taxes, insurance, money set aside for repair and vacancy, property management… I just do not understand how this strategy works. I would just about break even.

Would love to see how others are doing it in this price range!

Has anyone done a BRRRR on a higher end property? I know that is subjective. In my area, I'm typically working on 3/2 homes around 100-150k, renting for around 800-1000 and cash flowing a couple hundred dollars a month.

An opportunity has presented itself to buy a 6br home in one of the most desirable neighborhoods in town. It is cosmetically outdated but well cared for, so there is some room to improve. It is a historic home, however (1900s) so that could potentially present unique challenges. Currently listed for $460k, but been listed a while. If I have run my numbers correctly I think I could rent it for around $3000 and have a cash flow of about $1000 after mortgage, tax and insurance.

Big risk = big reward or is this a terrible idea?

Has anyone done “luxury” BRRRRs or executive rentals and had success?

I’m also considering that I may have more conscientious tenants at this price point which is a plus as well.

@Jonathan Dunn

Hi Jonathan!

I’m a few years older than you but I started investing when my kids were 4 and 6 months! One of the things I love most about the career is the flexibility it allows for family time.

I started as a flipper, and still consider that to be my main focus, though I am slowly adding rental properties to my portfolio when they don’t quite make sense as a flip.

I think this is a wonderful and flexible path for someone with a young family! I’m happy to answer any questions about how to make it work with little ones.

@Charles Cooper I will, thank you!

@Matthew Forrest

Thank you! It’s very helpful to have that list of cities. I was getting very discouraged looking at LA and surrounding areas and all their restrictions. Palm Springs and SoCal beaches are of interest to me so I’ll definitely take a look at those areas!

@Mel Hayes super helpful, thank you!

@AJ Singh

Thanks, AJ! I'm definitely interested to hear any STR experiences in California but I'm hoping to purchase a property in an area that I am personally interested in spending some time several times a year. I'm more into the city and beach locations right now.

@Joe Steele I've been reading the STR ordinance and it seems like it's pretty much impossible to have one unless it's your primary residence, is that the case from your perspective?

@Joe Steele thanks so much!