All Forum Posts by: Ryan M.

@Jeremy Galloway

@Michael Pearse

@Matt K.

Thank you guys for your responses.  Happy to see that taking out as much as possible while still being able to cover all expenses (present and future) is the recommended approach.

In the BRRRR strategy, you generally do a cash out refi in order to get the cash to "repeat." Is there a POV on whether or not you should refi the entirety of your initial investment so that your COC returns skyrocket and your risk is reduced, verses refi just enough that's needed for your next investment and leaving in the rest as equity (assuming your next investment requires less initial investment than the first)?

When doing a cash out refinance, should I factor the closing costs into my COC return? I hear some people talking about how the cash out refi results in infinite COC returns, but that's not actually the case, correct?

I personally am looking for deals that will deliver a higher COC than the stock market could for me. Yes, appreciation is nice, and important, but similar to @Jason D., I'm looking for COC to meet my criteria as my primary goal.  If I can net 8% in my passive stock portfolio (this is an example average), then it's hard for me to want to work so much harder for 5% in my property investment.

Again, this is based on my primary goal of cash flow.  If your goal/strategy is to build a nice nest egg for retirement and not replace your current income (not knowing where you are in life), then netting 5% while padding your future isn't that bad of a deal, especially since there are ways you might be able to increase that 5% through property and operational improvements.

I'm working to refine my property analysis spreadsheet and am having trouble figuring out what to estimate for water/sewer for the Chicago market.  Does anyone have a solid number that they use as an estimate in their calculations for metered units?  The city's rate site is a bit confusing to me. I'm currently vetting a duplex.  Thanks!

Appreciate it, @Dave Visaya

Hey All - 

I've been lurking for a while now, so happy to finally do my first post in the forums.  I've been doing my homework, with some more still to do, but will be making my first investment within the next 4-6 months - likely a small multi-family.  Looking forward to sharing my experiences and learning from others.

-Ryan