All Forum Posts by: Patrick Philip

This is my strategy where I buy at a discount and add value. My last project I just finished I bought at 95,000, rehabbed at 30K appraised at 163,000. Rented for 1620 a month. Cash flows 450+.

The premise is you have to know your market. I look at what I can buy it for, the rehab amount, the appraised value when done and the rental market. If it doesn't cash flow at least 300 I move onto the next project. I am working on three projects now. This BRRRR system works. Make sure you can justify your numbers and there are comps to support them. I have found a little pocket in the NW suburbs in Illinois that works really well. I also look at school ratings (Greatschools.com) and crime rates. I have been able to refi my investment back out.

Keep working at it. Thus system works.

Good Luck.

For now, I'm looking to fix and flip, but you're advice still holds. How do you buy at a discount? Is it through wholesalers? Feel free to PM me. How exactly do you add value? Are you adding bedrooms?

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Well I just decided that I'm fixing and flipping rather than fix and hold. I can use my HELOC repeatedly.

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I just secured financing through a HELOC. I think my price limit will be about $120,000 for the purchase and rehab. What characteristics do I look for in a rehab house that will allow me to add the most value? I get listings from wholesalers.

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Originally posted by @Marelyn Valdes:

If the SFH is purchased for cash and the rehab is also done for cash, and is turned into a rental, how much can the owner cash out and at what interest rate, with or without points/fees? My local bank in Ocala, FL, wanted to charge about $4,000 in fees/points and charge 6 - 7%, on 70% LTV. All my rentals are free and clear and I would like to cash out on one or two to buy and rehab more rental properties.

You could do better than that through any large bank or credit union. You could get 80% LTV and a lower interest rate. I just went to a bunch of them today.

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I realized I've asked similar questions, but this is what I'm getting at. I know I need to use the BRRRR strategy. What is the trick to buying properly. Looking for deep wholesale discounts? Do I have to find properties that I can add value to? If I am able to get back all money I put into it, then I can quickly reinvest in another one, otherwise, I'm stuck having to save for another down payment.

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I am trying to save money. ListSource leads cost $0.14/lead. If I assemble my own lists from the property appraiser data, it will be infinitely cheaper. What do you think about this? Which should I do and why?

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All Forum Posts by: Patrick Philip

Patrick Philip has started 262 posts and replied 908 times.

Post: What would you do to this house specifically?

Post: How to find deeply discounted fix and flips?

Post: How to find deeply discounted fix and flips?

Post: How to find deeply discounted fix and flips?

Post: How to get all cash out of an investment property?

Post: How to get all cash out of an investment property?

Post: How to find the ideal house to rehab and flip?

Post: What companies to use for maximum refinance LTV?

Post: How to get all cash out of an investment property?

Post: Buying leads from ListSource versus property appraiser?