All Forum Posts by: Seth Church

@Seth Church - I also grew up in a family that was debt adverse. It took me a very long time to develop a new mindset and understand the difference between bad debt and productive debt. I'll take a stab at answering your questions, but the answers are based on my experiences to take them at face value. 

- Can I use the BRRR method on a property I plan to live in? I.e. can I find a property that needs rehab, rehab it, refinance it and live there, taking the cash (assuming a 70% loan on the ARV will provide cash on top of expenses) and rolling it into the next property? 

I have purchased a property, using a construction loan in the first closing. The loan was a 12 month, interest payment only structure. In my scenario we flipped the house in your scenario you would then do another closing to roll the property from short term to long term fixed rate debt. I purchased a personal residence for cash a few years ago and then tried to do a refi using a VA loan. Note that the VA would not support a loan on an owned property. In your case, they may support a refi off of a construction loan, but I would 100% be sure to talk to a lender that really understand the VA products. If you send me the state you are stationed in currently, I can send you anyone I know that is licensed in that state as a lender that I would trust to answer some of those questions.

- Where do I find reliable comparables to determine a house's ARV? likewise, how do I determine the market rent for the property? 

I would look up how to comp a property and watch a few youtube videos. That should at least give you a foundation. If you work with a real estate agent, then they should be able to help you with some of these numbers since they will be more familiar with the market. The burden is always on the investor to validate the information and do their own research, but a knowledgeable agent should be able to help supply some puzzle pieces. 

- How do most people estimate the cost to rehab?

During a due diligence period you can line up as many contractors as you want to give you bids. There are plenty of tools online that can be used like rehab budget templates and rehab check lists. If you have a friend who is a GC or if you can connect with an experienced investor in your area, they you may be able to have them walk the home with you for a back of the napkin budget before you even submit an offer. 

-Last, where are you all finding the deals?! What website / realty services?

Listing services, using agents, looking at Facebook market place, knocking on doors, telling everyone you know what you are looking for... 

The best deals will come off market from people who have an incentive or a desire to see you succeed. Start telling your network that you are looking for a home, willing to take it in any condition, and ask them if they know of anyone who may be willing to sell. Do they have a relative with rental properties? Do they know someone who inherited a home and is overwhelmed by fixing it up to be able to sell it? 

I hope something above will at least turn into a stepping stone to usable information. Best of luck on your learning and investing journey!