All Forum Posts by: Wenecio Godfrey

Hi Greg,

I'm looking over your numbers and a few questions come to mind. First, what is your goal? Most people I know who use BRRR want to buy the property at a price where they can purchase, rehab, and recoup most of their money back after the refi. If your total purchase cost is $143,500 and you expect the ARV to be $150,000 then at refi you will only recoup $112,500. I see you plan on holding it for 13 months and it shows cashflow of $650 collecting $1,300/m and using the 50% expense rule. Are you using your personal cash only on this purchase? I didn't see any loan interest payments calculated into your cashflow numbers until after the refinance. Also, expect your cost to be a little more than what you have projected for the refinance. Closing cost could end up being about $1,000 more than what you have projected (this is just from experience).

Right now it seems that in the end, you would have aprox $35k tied up in the property after all is said and done, and $42 of cashflow according to your own projections.  Correct me if I'm wrong, but it seems you might be going to the appreciation play here right?  My only problem with this is that it is a lot of work since for almost the same amount, $35k, you could go out, buy a home that is already rehabbed  (20% down conventional loan).  I'm not in your market, but if I found this deal in my market it would be a no-go for me personally. 

My last BRRR left me with $30k in equity, $12k of my own money tied up into the property, and a cashflow of about $300. It's ARV was $140k. I personally do not like having any more than $10-15k max of my own money tied up at the end of any deal, and I need a minimum of at least $150 cashflow after all expenses/loan payments are accounted for. Every investor is different though and you just have to go with what you think works best for you that helps you reach your own personal goals. I know you said you were running worse case scenario numbers, but if you're confident in the higher ARV and lower rehab cost, then the deal becomes a bit more attractive.

I hope this was of any value to you and if I misunderstood anything please do correct me.  Congratulations for getting out there and looking at deals! :D

As a service member myself, I thank you greatly for having a heart for this kind of project.  May God bless you, your team, and all of your efforts!

@Jill DeWit    I often complicated the same thing you said.  While I enjoy the flipping business, I do believe that even though the payouts would be smaller, we could turn deals more quickly and make more annually by wholesaling them instead of taking them on ourselves.  Do you mind sharing a few of your strategies of what has been working to find steeply discounted deals in your area? 

Craig, great job on your first flip!  I went over on budget and time on my first one as well, but still made a profit.  That wouldn't be possible if neither of us did the first important step of any Flip deal, "Buy Right!".    Awesome work and I'm sure you'll get a buyer soon.  The house looks too good and I'm sure someone will soon fall in love with it! ;)

Good job!  The first deal is always the most nerve-racking.  The learning never ends though, even after you do 20 deals, something new to learn is always around the corner!  Also, I think it's great that your first deal is producing cashflow for you.  In my opinion it is the best way to build long term wealth.  Many people like to start with wholesaling or flipping (thanks HGTV).  Best of wishes in all of your future endeavors! :)

7421 Richardson Heights Place Jacksonville, Florida 32209

Great Passive Income!

3BR/2.0BA Single Family Residence - For Sale at $45,000

Year Built	1965
Sq Footage	1200
Bedrooms	3
Bathrooms	2 full

Description

PRICE REDUCED FOR QUICK SALE! New roof and windows placed in 2009 and still in great condition. Established neighborhood with helpful neighbors. It has a big back yard, huge master, and nice wood flooring! The home is outdated and in need of basic rehab (interior paint, flooring, kitchen, bathrooms, a/c, etc.) 10-12% Cash on Cash ROI before expenses. Achieve up to a 35% ROI by refinancing later on and then put the money into another property! Area rents are $850-$925. The early bird gets the worm so submit your offers! No low ball offers. Serious investors/Cash Buyers only!

House Features

• Hardwood Floors
• Attic
• Grass Lawn
• Garage

Niko Godfrey [email protected] p.877-700-0577 m.619-807-7195 brighterpathproperties.com

http://hotdealoftheweek.com/359853

Lillie, I'm interested in seeing the numbers as well. Thanks!  [email protected]

Originally posted by @Hadar Orkibi:

can anyone share information about these meetings?

websites or dates etc?

http://www.reif-jacksonville.com/

Meets the 3rd Thursday of every month.  Very informative and well ran meeting.

https://www.meetup.com/JAX-REIM/

Meets every 4th Thursday of the month.   One of my favorite meetings with great education and experienced leadership at the helm.

Hello Lillie.  I know this area.  Can you send me your sales package on this property to [email protected] so that we can discuss further?  Thank you!

Niko :)

This is a solid cash flow deal located in one of the hottest markets in the U.S.! This property will make a great rental and should produce at least $300/m cash flow if you use BRRR as your strategy. Needs about $24-28k of rehab. Roof is only about 8 years old and in great condition. See website and it's attached documents for more pics and information. Being sold As-Is. Cash offers only.

http://hotdealoftheweek.com/359853