All Forum Posts by: Bill Goodland

@Ben Morand don't take advice from anyone you wouldn't trade place with. I wouldn't worry about an LLC. Call 100 available rentals and maybe you'll get 1 interested in allowing you to arbitrage. If you're willing to put in the work I say go for it. The only risk of reach out is your time and effort. Seems like it has a lot of upside so why not

@Michael Lyons you didn't say exactly how much equity you have in the deal, but let's assume you're at 75% LTV. That would be 64k worth of equity. At $129 a month in cash flow, you're at 2.4% return on your equity. Especially considering it was your primary residence, I would sell tax free and use that capital to buy 2 more houses that'll probably have 5X the cash flow and likely more equity upside since it already sounds like you maximized this places value

@Matthew Irish-Jones I think there is more risk in taking on a big rehab and taking on a highly leveraged HML than there is with the strategy itself. Nothing adds more value than a lipstick paint, flooring and fixtures rehab which has relatively low risk if you have anyone with a brain doing it. Yes, if you're doing large structural or full gut rehabs that's a huge risk, but in my opinion is a bigger issue than the BRRRR strategy itself. Same thing with a HML. If you can buy something ugly even with conventional financing for say 90k, throw 5-10k in there as a simple rehab, rent it for 1200 then refinance out at an ARV of 120-130k, even if it's not a stellar deal, I would say that's a way better way to start your investing by adding some value to your deals, building some equity and repositioning it later on to allow you to safely and effectively scale as opposed to just waiting to save up another downpayment

@Krystal Marquez there’s a ton of info on this on BP. I would recommend search markets within a 1-2 hour driving distance that have rentals that meet the 1% rule. If that doesn’t work for your greater metro market, consider the Midwest as previously mentioned

I would say it depends on the return you’re getting on the equity. A minimum of 1 year to allow you to 1031, or just lease it to one tenant and sell it to 1031 once they leave whether they stay for only 1 year or 5. Use the proceeds to buy another value add deal. 

@Jim K. I don’t think a 95 hour work week is necessary at all. Smartest people I know leverage others by providing the opportunity to work in their business

@Stephen Homes nope nope nope

@Peter Goeller cash for keys

@Carl Flint if I buy a $100,000 of a stock and after 1 year it is worth $105,000, I made a 5% return on the initial investment. If I bought a $100,000 house with 20% down and at the end of the year it is worth $105,000, I made a 25% return on my initial investment because although the overall asset only went up 5%, my equity went from $20,000 to ~$25,000 thus the 25% return on the initial investment compared to an unleveraged return of only 5%. This multiplied by a lot of properties over a lot of years is a whole lot of wealth.