All Forum Posts by: Mitchell Morwood

@Whitney Hutten

Thank you everyone for the replies. It seems like I would have to buy a house for a lot less than 150k in order to make the numbers work. HELOC would be an option too.

So I’m struggling with how much my mortgage payment will be after I refinance. If I buy a house for 150 and can rehab it to make it worth 250, that’s a giant mortgage payment. Even if I’m getting 1500 a month for rent. Not much monthly cash flow. Yeah I made 60-70k but it seems too risky.

So my main question is: will this strategy only work if you can get a house for dirt cheap? What have overs done? Thanks!!

@Victor S. Yes that was my main question- If people BRRRR and still cover the 2% rule.

I say this genuinely because I am so new to this, but isn't that the point of the BRRRR? To find a place that you can make a ton of money on with a cash out refi? Then to keep it with a renter paying down the mortgage, cash-flowing monthly, and having that 80-100k to invest in another property.

Great answers guys, that really helps.  The house I am looking costs 100k and will take 20k for the rehab.  I know I can rent it out for at least 1300 a month.  Similar homes in the area sell for 220-250.  So I am hoping to pull out at least 80k for the cash out refi.  

Thanks

I am going to start my first BRRRR. I already have a couple properties and am following the 50% and 2% rule. If I'm in a house for $120 (after rehab) and can cash out and refi at 220, I get about 70k back but my payment is so high, that now I am not cash-flowing enough to follow the 2% rule.

Thank you everyone for the responses.   I have a local guy coming and doing it for $300.  "B" seems ok with splitting it with "A." I agree, your pet, your responsibility! 

@Gary Floring I allow pets because at first I didn't have as many applicants.  I probably shouldn't allow pets after some of the headaches I have had.  But I personally only know a handful of people who don't have pets.  I feel like it decreases the potential of good tenants that might apply.  

Thank you everyone for all of your help.  I have Orkin coming next week.  Its going to cost about $700 to fix it all... Not sure how I am going to split the cost yet only because "A" is so upset about all of this because they are so positive they didn't bring the fleas in and they don't currently have fleas.  Yeah right!!!

UPDATE

"A"  won't admit they brought the fleas in.  I have had multiple, multiple tenants with pets and the property has never had fleas.  "A" claims they should not have to pay for any of "Bs" since there is no concrete evidence that "A" brought them in.  "B" tells me that "A" knew the visiting cat had fleas.  How can I force "A" to get their dog cleaned before I hire a professional to clean both sides?  Then I need to give that bill to "A."  

I a have a duplex where the front and back exterior doors are shared.  Both have their own interior door leading to each side of the duplex.  The back yard is shared.  Tenant A brings in a cat without asking me.  Tenant A admits to Tenant B the cat has fleas.  The fleas spread to both tenants dogs.  

Tenant B is very upset because they have to treat their side of the duplex and dog.  They want me to pay for it.  I feel like Tenant A should pay for it.  Tenant A now claims to me their dog doesn't have fleas.  The cat is gone.  

What should I do???