All Forum Posts by: Sean Larsen

I think the answer will vary from person to person. I worked with my dad for a couple years and he was a great mentor. He had the heart of a teacher and cared more about my success than his. However, I have a few friends who (if I were them) I would not want to work with their fathers. They could be unwilling to teach, controlling, or plain untrustworthy. You really need to think about how you and your dad have interacted while you were growing up and if you think he will be a good resource. Or, if your dad prefers to give you total control and no mentorship, you could see about getting a loan from him (still put it in writing).

Thanks for the heads up @Michael Noto. That still only gives you about $100/mo cash flow if you do your own PM. Do you think the deal is worth it for the equity, or should a BRRRR investor stick to markets where rent is at least 1% of ARV to make the cash flow work?

In BP episode 327, they make the point that if there are flippers in a market, then BRRRR will work. Is this appropriate thinking?

For example, let's assume you BRRRR perfectly and refi all you cash invested out of a deal. Market stats: The ARV is $200K and rents are $1,400. At 80% LTV, 5.5% interest rate, $1,600/yr taxes, and $800/yr insurance, you get a PITI of about $1,108. Assuming 8% vacancy and 8% capex, you get cash flow of $68. That's barely breaking even. Yes, you got the equity, but without cash flow would you consider this a workable deal? So does BRRRR really work anywhere flippers can succeed, or do we also need that sweet sweet cash flow?

Thanks for your feedback!

@Steve Trang I'd be interested!