All Forum Posts by: Steven Foster Wilson

After much hard work and a lot of time, we have finished construction, closed on the refinance, and paid off all of our 0% APR credit card debt. The details are as follows:

- We ARV appraisal amount was $440,000

- We got a refinance loan for 85% LTV ($374,000). Usually on multifamily the LTV limit is 75%, however we did an FHA refinance which allowed 10% more. Also our credit scores were low because of the credit card debt, so FHA offered the best rate

- We refinanced with a 4.125% rate

After all was said and done, we paid off $30,000 of credit card debt before the interest term kicked in. Now we are left with a still cash flowing property, and $45,000 to invest in another property.

I was in my sophomore year of Scholl when I decided to BRRRR my first multi family property. I cashflowed on the rent and got a nice refinance check. And the house was a 9 minute bike ride from school.

It’s an excellent way to go for a young person who doesn’t mind living with others

My wife and I have just finished renovating the 3/4 floors in our house. We used the BRRRR method and our appraisal came back 140k higher then what we bought it for. Hopefully our refinance will close this week and we'll have 45k leftover after the renovation debts are paid.

So with this 45k my question is, should I use the money to renovate my basement, or buy a new house with these low interest rates.

I have plans to renovate my basement, transforming it into 3 beds and a bath, it would be apart of the 1st floor unit. Total cost for renovation is 23k and I believe I can get $350 from each bedroom. That’s a 54% return in the first year.

Or should I purchase a new duplex while rates are low. With how the market is now, rates are good but house prices are high. I believe I could purchase a $300k duplex that would cash flow about $200 a month, but have potential value add for later on.

Anyone have experience advice?

Venmo is what I use, it connects to either your bank account or even a credit card. Explain to how easy it is to track all of her payments with the click of a button. 

Zoho is a good platform for property management as well as finance, hr, crm and a slew of other things. Zoho.com

Is he cute? keep him if he's a good boy.

@Frank Wong thanks for the encouragement. I do have a W2 job as does my wife, we make a good living and will be able to pay down the debt. 

I guess my concern was that this is our first deal. I didn't know if this was a normal practice or a taboo thing. 

@Frank Wong @Justin K. @Christopher Lombardi @Jim K. thanks for the fast replies. So here is my situation. I bout a duplex, a 6/2 on OSU campus. I am converting it to a 10/4 (2 more bedrooms to go). Similar comps have gone anywhere from $450k-600k in my area, of course this is up to the appraiser. I am able to pull 75% LTV, so I've figured anything appraised below $450k won't be worth it.

So far I bought it for $305k and have put 40k into it. So to have $345k at 75% I’d need it to appraise at $465k.

My plan B is to rent out each bedroom at $500/ room (going rate on campus, single bedrooms for off season). That is $5000/ month in income. $2200 will go towards mortgage, $2800 will go to paying down the cards. Paying off 30k of debt would take 11 months, just enough time before the high APR kicks in.

Is there anything I’m missing? Should I plan for a different route? 

Like most I so badly desired to jump into real estate. The only problem I had was that I had no money. I was able to scrounge up 15k through family for the down payment, but I had no money to enhance the property I was buying. I was hoping to enact a BRRRR strategy.

So now here I am with tens of thousands of credit card debt with 0%apr until March 2020. Constantly I doubt my refinance value, I feel like Im making a mistake.

Has anyone else had a similar story where they floated the renovations but it paid off in the end? Im hoping for some inspiration.

@Sophia Coleman in that case, consider your utilities as they are split. If you will have 3 separate units you may have to purchase 3 new hot water tanks, etc...