All Forum Posts by: Mike Lock

@Dan K., great insight, thanks! I definitely get the trade offs you’re talking about. One thing I haven’t done is compare interest rates on traditional products like a 30-year fixed or 7-year arm vs a hard money loan. You make a good point about the quality of tenants, I’ve been thinking about that as well.

@Christian Nachtrieb, thanks for sharing! Those numbers look excellent and actually quite encouraging for this area, I’m surprised the rehab wasn’t significantly higher. Well played keeping the costs down. Is this a stand-alone single family or a condo in a multi-family unit of some kind?

@Elizabeth Miller, thanks very much for the tip. I’m thinking about small multi-families for my first deal (urban duplex or triplex). I most certainly do NOT have $2MM to invest so I’ll definitely need to get creative.

@Joseph M. That’s a really interesting idea, you mean short term rentals for visiting employees? Do you have experience with that strategy?

@Kai Van Leuven, thanks very much for your input. A lot of people are saying off market is the way to go so it sounds like that’s a good way to pursue this.

@Frank Wong thanks for the insight. I’m definitely interested in the condo market. Good point about construction costs though, they are insanely high right now.

@Christian Nachtrieb, thanks for the note and congrats on your properties in Dorchester! I'm a big fan of that area as well. I'm still curious about the cash yield on these areas after you refi, can you still get a good return after you're doing a cash out loan for 75% of ARV?

@Zac Ballin great stuff, thanks for the response. I currently own one rental, a condo I lived in before moving and I hung into it. I wasn't thinking about any of this when I first bought it. The cash-on-cash is only 3.5% but it is positive and appreciating nicely. If you have any specifics of your first BRRRR you're willing to share that would be great, if not I totally understand. I'm curious about how you found a place with enough delta between ARV and total cash invested to make it attractive, as well as enough rental income above your refi cost.

@Mike Dymski, thanks I appreciate the perspective. When you say “increase in value” are you talking about appreciation of the market value of the property?

@Brian Garrett thanks, that was my suspicion, especially with all the deal specifics discussed on the podcast having numbers that simply don’t translate to my market. Do you stay away from expensive markets altogether or do you have different strategies that you apply?