All Forum Posts by: Nick Wilson

Hello BP!

I'm a new investor and currently looking for a property to BRRRR. I plan on using the HELOC on my current home to purchase the home outright, then refinance with a conventional loan after repairs are completed. I've been searching for a lender to get prepared for the future refi. One lender, after I explained my goals and strategy said in an e-mail:

"There is a 6 month seasoning requirement on a cash-out refinance. One exception is a “delayed purchase” refi which you can do when you pay cash for the house initially. The catch is you can only refi the amount your paid for the home plus closing costs/title fee’s for the purchase. You cannot include the rehab costs on this program."

My understanding of the BRRRR Strategy to to recoop the purchase price, closing costs, and rehab costs as much as possible. Essentially getting a new loan for 75% of the new ARV. The line that stuck me from this lender is that I couldn't include rehab costs in the program. I would like to ideally recoup those funds from my HELOC so I can start looking for my second property sooner than 6 months. What am I missing? Do I just need to find a different lender? Thanks in advance! - Nick

Thanks Mike! Much Appreciated!

Thanks for the input everyone! Much appreciated!!!

Hi BP!

I'm just starting out, and will be buying my first SFH rental soon. I was lucky enough to attend @David Greene's BRRRR Class last night which was amazing. So many gold nuggets - thank you David! One question I forgot to ask is, should I get a contractor to give me a bid before I make an offer, so I can calculate more accurate numbers into my BRRR Calculator? Or am I just guestimating rehab costs very conservately based on pictures, then get bids after I get an offer accepted? The reason I ask - if I'm making say an offer a week, that seems like asking a lot of a contractor to run aroud and give me bids each week, knowing that I won't make a deal on most of them. I can see being a pain in the a** for the contractor to ask this, but I could be off base. So, how do I get accurate rehab numbers? Thanks in advance! -Nick

@Ernesto Hernandez @James Wise 

@Jerry Padilla and @Antoine Martel  - thanks for the conversation.  I'm learning a lot.

@Antoine Martel now I understand.  Thank you!!

@Melissa Nash - thanks for the advise! 

@Antoine Martel thanks for the advise! Can you explain what you mean by letting my HELOC Funds season in my bank for 2 months? My plan was to buy the properties outright with the money from the HELOC, then refinancing in a few months to a convential loan. Are you talking about something different? Thanks!

Hello! I'm completely new to investing, and am looking for advise. I'm looking at buying my first rental - a SFH in the Midwest. Currently I'm looking in Indianapolis and Detriot. I currently live in Sacramento, CA. I have about $200k equity in my home. My current plan is to take out a HELOC, and use part of that to pay for my first rental, then once it's renting out to re-finance that loan with a regular mortgage.

Hi @Alyssa Dyer! Thanks for the info! What's the  difference between an A,B,C,D Class and how do I know if the property I'm looking at is in which class?