All Forum Posts by: Steven Gillmer

Hello all! I recently purchased a duplex in Old Brooklyn thanks to Matt Motil and I am excited about adding to my portfolio. Just wanted to drop in and say hello to everybody!

I really like the BRRRR concept and have been scouring all of my deal sources for 2 - 4 units properties including emails I receive from a few providers and hope to find another that fits soon. I also am interested in 5+ units where I can add some value.

Hope to get to know you all soon.

@Sandy Reedy, I have a duplex in Old Brooklyn and my tenants pay rent + $50 water fee as part of their lease and then I pay the water bill directly.

I have James Wise's article linked above bookmarked so I can check the leads I receive. It has been a great resource for me.

I agree with Erik. Hanging in to it for a couple of years still allows you to pull your money out via the refi, collect some cash flow and possibly realize some appreciation. Then, if you sell later, you can either 1031 or pay a lower capital gains tax. 

I think it depends on your goals. For me, I am transitioning into small MF because I need to maximize the amount of cash flow per conventional loan so I can replace my income. I cannot afford the ones in my market so out of state I go. I know going in that a duplex will not necessarily appreciate at the rate of a SFR, but, if I can BRRRR, then I have plenty of cash flow with little or no money out of pocket. Gotta do what is right for you.

Hello all! I have an SFR in Memphis that I purchased a couple of years ago for $60k (Original contract was for $70k but inspection revealed a need for a new roof so I asked for $10k off). I financed with 25% down on a 15 year note which has resulted in a nice paydown of the loan of $10k. So, the value of the house is currently $75k - $80k, probably closer to $80k since I have a long term tenant paying $925/mo and a brand new sparkly roof installed last week.

The expenses have been higher than I would like and the cash flow has been more of a break even, leaving me only appreciation and loan paydown as my "profit".  If I refi, I can pull out about $15k and I would flip to a 30 year, making my payment about the same, if not a few bucks lower.  If I sell, I probably walk away with around $30k, very little of which will be taxable after adding $7,500 for the roof and the closing costs of the sale.

With this scenario, what would you do?  Take the $30k and find something with better cash flow or pull out the $15k and hope that you have repaired just about everything that could be repaired at this juncture?

Any thoughts would be appreciated.

Welcome @Andrew Untersee.  I too was inspired by Rich Dad, Poor Dad and have been able to aquire 4 units with a plan for several more.  I invest mainly outside of Nashville but am very interested in trying to find something that make sense here.

I just have one questions, do you also like Pina Coladas and getting caught in the rain?

Thanks James, I was afraid that would be the case.

I recently purchased a duplex in Cleveland, Ohio for cash and am currently setting up my LLC so I can change title from my personal name to the LLC. So, which is a better strategy to pull out cash for the next deal; cash out refi (Assuming I will have to personally guarantee) or some type of line of credit? I am sure there will be some barriers since my LLC is so new, even though I have owned two other properties in Memphis for a few years in my personal name. Any thoughts or opinions will be appreciated.

I also enjoy Destin and would love a place there.  My strategy would be to make a little money now and have the renters pay for my retirement place on the beach :)

@Chris Gerbig, I would love to hear more about your units here if you would like to share.  Also, you mentioned that you purchased a second before they possibly change the regulations, I am not sure I understand that.  If there is a ban or moritoriam on STRP, wouldn't that put you in a precarious position?