All Forum Posts by: Account Closed

@Account Closed you are looking at the refinance part. If you pull the same amount out each time then cash flow will stay the same. Only in the prefinance part will the cash flow change on lowering the purchase price. If you want the cash flow to go up don't refinance as much.

@Sharad Peterson that’s a good question. And that depends how much you trust your agent. If you trust them, I’d say go for it. But always have an exit plan just in case

@Sharad Peterson I'm currently working on a SFH BRRRR in St.Louis. One thing I suggest is to run the numbers "worst case scenario". If your agent is telling you the ARV will be 100k, assume it will be lower. If they suggest the repair costs will be 20k, assume it to be higher. Once you run your numbers by worst case scenario and you're still cash flowing, that should give you more confidence with the purchase. Trust the numbers! This is also my first deal. The best way to learn is to throw yourself in the fire!

The systems covered by condo associations vary somewhat, so I wouldn't use a blanket percentage. I like to look at the major items that I'm responsible for with a specific condo, and then create an estimate over time. For example, with my most recent condo, the only major item that I'm responsible for is the HVAC. The roof, structure, foundation, hot water heater, and exterior are all covered by the condo association. Then there are things like paint, carpet, appliances, etc. If you look at what it will cost to replace each of those items for your particular unit, and then divide that cost over the expected life of those items, you can get a really good idea of your capex. This may seem time consuming, but once you've done it for a few units in a specific community, then you can start using $/SF capex numbers (keep in mind these numbers won't be accurate for other communities, if the HOA covers different things). In general, I would expect this number to be well below half of what I would assume for a similar sized single family home.