All Forum Posts by: Roger Laughary

I did most of the repairs myself and through friends: spent $1500 on electric and lighting. $1000 on plumbing. $1000 on carpet/paint, and about $1500 on kitchen and bath tile, sinks, toilet, etc. I actually found it on the MLS which is a shocker. It kept getting dropped in price so I watched until it made sense for me. My next will probably be off of one of the foreclosure sites I've been looking at.

Bought it as a REO at first. just an FYI, you can do this with anyone until you have 4 mortgages in your name. That's the limit for FM and FM. Then you have to find a local bank that keeps the loan or hard money. Hope this helps.

I put 20% down and did a 15 through a small town bank. 

I was able to borrow 75% and 4.65% on a 30. Used a local bank that sold it. 

Hi Benjamin,

Don't worry about being new. Everyone starts as a rookie. No question is a dumb question. That's what BP is all about. I'm still a rookie as well. A cash-out refi is when you refinance the property, and take cash out by borrowing more in the property than you did the first time. For several investors who rehab, this is a way to grow their business very quickly through taking that cash and re-investing time and time again. You buy a house well below market value that needs work, put some sweat equity into it and get it rented out, then when the value goes up significantly, you do a refi-cash out with a willing lender and take that newly built equity back out of the house to re-invest into others. The trick of it all is, knowing your numbers on the rehab and ARV (after repair value).

Thanks Pancham! I've never heard the BRRR but I like it! and I'm ready for the 4th R!

Thanks Sam. It's exciting. I am searching for them right now. I hope to find a good one this summer. I want to find something similar to number 1 on number 2. But I want to take the next two one at a time and do as well as I did on this one, so I can maximize the money I have to invest.

Hello  all,

I just want to say thank you to Bigger Pockets, and several of you who interact with the forums.

I've followed some of the basic principles that Bigger Pockets outlines, and they were fruitful for me on my first project. I bought my first rental property as a foreclosure for $33k, put about $7k down and $5k rehab cash into it, and I was just able to refinance and cash out with an appraisal of $65k, pulling enough cash out to do it two more times immediately. Plus, I am getting $300/month in cash flow off of it. AWESOME. I realize this is a small win to some of you on here, but for me it's helped me prove to myself that I can really do this and do it well. Now I am excited to really put these strategies to work and PUSH myself to reach some serious life goals through REI.

I hope that this may give some of you that are building up the courage to try it out (with some good strategy) and be able to do as well as I feel like I did my first try.

Thanks again,

Roger

Update to This Post:

Thanks for all the input everyone. I ended up sending her a letter to take him off the lease and seeing if she could get him to sign it when he came back into town. She was successful and now all that drama is a couple months behind me. She was extremely thankful and I am too, because I truly felt it was the right thing for everyone. She's happy, still paying well and maintaining the property so far. This makes me happy of course.

I have a friend who has several properties telling me to tell him the lease is broken because of abandonment from him and sign a new lease with her. This, after I reached the man and he acknowledged she doesn't want him there and he's been gone for several months but he has nowhere else to go. He's also not working and cannot pay for the lease alone. Also, if he doesn't get the point, then threaten legal action. Thoughts??