All Forum Posts by: Roy Gottesdiener

So far I completed 4 brrrrs, an average deal was about 120k all in and an ARV of 150k. What I'm trying to understand is this - with these numbers, during cash out I leave around 20k in the property (the 75% LTV minus closing costs, comes to about 68% LTV cash in hand).

So this means the speed at which I can scale is the speed at which I can keep coming up with 20k (and deals of course).

Which way did you use to scale quicker without having to find home run deals? What options do I have?

@Guillaume Jean Andre Palomba

I've been in the Cleveland market for two years, own 7 SFH and have a bit of a mixed opinion regarding the market.

1. We were able to find great deals on the MLS, not like other markets where it's all off market, no contingencies etc. For example I have two rentals that were all in for 100k and appraised for 140k

2. Tenants - I have some great tenants and some bad ones, still 7 units over 2 years is not a large sample but doesn't look like anything unusual

3. POS, taxes, etc - yes they're high but if you prepare for them and get your numbers right you should find deals that work for you with these numbers

4. Population and job growth - I'm also a bit worried about it but at the end of the day if it took me a month on average to find a tenant, and I made 40% equity through forced appreciation, I think I'm safe in terms of returns for the near future

I'm looking for resources to find macro data on the US real estate market, to examine metrics often discussed on the BP podcast such as new construction delivered, foreclosures BTA, properties on sale/sold etc. I'm sure there's no one go to for everything but if you have recommendations on a few resources I can check out that'll be really helpful.

 Wow! I'm following your lead and preparing similar packets now. I heard in one of BP's podcasts a suggestion to mention comps but not their prices, what do you think about it? Did you write down their prices as well or just the addresses?

I'd appreciate any tips. The document has 4 pages:

1. Suggested comps - address, size, br/ba, rehab apparent in pictures, sale date, sale price

2. Appraisal on property from a year ago before rehab work was done

3. Invoices from contractor for rehab that was done in property

Do you think anything critical is missing? Or alternatively that I should remove any part of what I put together?

@Jeffrey Donis

Thank you my man, I actually got one of my deals in Fayetteville through your FB group 😁

@Cody Neumann

Yup I think this is the way to go, then I could do 3 deals instead of 1. Thanks!

@Caroline Gerardo

Can you elaborate?

I'm a buy and hold investor with 3 rentals currently which I bought cash and about to BRRRR them. Thinking of my next purchases, ideally I'd buy rentals using financing so I can increase my ROI and acquire more properties, but there are a few things I find challenging:

As an investor I'm always buying properties that require rehab, which can't be financed, so even if I get 70% LTV on a 100k property but need to add 20k for rehab, doesn't it take the sting a bit out of the process? And if you add the fact that it's much easier to buy cash, should I always opt for cash closings and then cash out?

How are you all approaching this when thinking about building a rental portfolio?

@Christopher Miller thank you!

For landscaping I used the previous payments and saw they came down to 120 yearly, but I'll check again.

For vacancy, I just bucket it with repairs and so 6% plus 10% would be around the 15% that I used.

That said, it feels like I'm missing something because the cash flow and CoC in SFH I own are much higher, I was sure that small multis provide much better returns