All Forum Posts by: Nicholas L.

Hi @Nicolas Mitchell it depends on what metric you are using. If you're going to BRRRR a property, you need to look at the ARV to understand how much cash you might be able to pull out after the refi. The goal is 100%, which may or may not be realistic. Pulling out 100% of your cash means you were able to substantially increase the value via the rehab. The down payment (if you're financing the purchase) is important but only represents part of your cash outlay. You'll also have closing costs, the rehab, holding costs, refi costs, etc. These are all cash outlays. It's difficult to BRRRR with conventional financing for multiple reasons - you will pay financing costs twice; you might not be able to get a mortgage on the property; etc.

Hi @Account Closed are you able to share any additional information about the specifics of some deals you're looking at? Tax and HOA aren't the only expenses you'll have - so $10K divided by $100K isn't really the right way to analyze a deal. Say you're looking at a property that will rent for $1000 a month that you could purchase for $100K. It MAY cash flow - but you would need to do further analysis, especially with an HOA payment. That's a big wild card.

Hi @Austin Wheat are you working with lenders that specialize in VA loans? There are some here on BP, see if you can find some relevant threads. With respect to co-signing - that is an option, just remember the co-signer stays on the mortgage until it's re-financed or paid off, so the debt counts against both your and their DTI for the life of the loan.

Hi @Bud Evans congrats.  What neighborhood?  Flip or rental?

Hi @Bob Veitch if you haven't already create a Credit Karma account, it's a good way to generally monitor your credit from month to month

Hi @Heval O. I'm supportive of renting in the short term because there are no entry or exit costs like there are for purchases and sales.  You just pay rent - it's a great deal (again, in the short term) because of the flexibility.

With respect to pulling equity out, it's definitely worth considering.  See what kind of rates you'd get.

Hi @Lawrence Li is this a flip or a rental?  Have you had an agent compare comps between 5/2s and 4/3s?

Hi @Heval O. if it cash flows, it might be a good rental.  Does your $200/month calculation include vacancy, repairs, capex, etc.?  There is very little advantage to paying it down if you can use the funds you'd use to pay it down for a different purpose - such as another cash flowing property.

Hi @Thomas Muir assuming you're talking about transitioning your primary residence into a rental, here are a few things to consider:

• 1. Have you pulled actual comps to see what your current primary might rent for? Have you run the numbers to see if it cash flows or not? Be sure to include repairs, vacancy, capex, etc. in your calculation - don't just do monthly rent minus PITI.
• 2. Will you put your current primary under property management (which usually costs 8-12% of the monthly rent each month) or will you self-manage? Are there good property managers in your area in case you have to put it under management?
• 3. Can you afford a new primary based on your overall financial situation? Are you working with a lender on financing options for a new primary? How long do you intend to live in a new primary?
• 4. Does your current primary need any sprucing up to be ready for renting?

What other specific questions do you have?

Hi @Caroline Landreth how about David Greene's book on BRRRR and Brandon Turner's book on investing with low or no money down? I also benefited from Gary Eldred's "Investing in Real Estate" and Chad Carson's "Retire Early with Real Estate."