All Forum Posts by: Account Closed

Great point on the differences in financing options for each strategy @Ronnie Woolbright! Thanks for adding that for consideration.

@Matt R., I appreciate you bringing up exit strategies! I have just started really exploring the subject of exit strategies and how different RE vehicles tend to lead to various exit options.

Thanks @Raymond Williams! Sounds like learning/analysis paralysis. I'll definitely be sure to jump in soon and not just keep trying to learn it all from the sidelines!

Thanks @Michael Medinger! I love an alternative perspective and I like the spin you added. This conversation really just proves the answer is, it depends.

Hi @Matthew A.! I've read that you can and upon researching some TK providers, you indeed can just purchase a property from them without having them manage it. Alternatively, one can purchase a "tenant ready"/TK property individual from a company that provides TKs and either self manage or have a TK provider take over as PM for your investment...the beauty of REI - so many options/strategies!

Thank you @Johnathan Alesso! I do think I may simply try both (tenant ready and fixer upper) to see which suits me best. It's one thing to read stories online and do market research but there's no experience like jumping in and seeing for one's self!

I'll avoid rehashing what everyone else has already commented about the property price, rents, and the deal. However, as a Vanderbilt alumna and being familiar with the area, I would caution you to be careful when choosing property in that area/near the University. While Vanderbilt is like its own little affluent world, surrounding neighborhoods can quickly change from desirable to lower income. A good example is the Edgehill community (which I've heard is being targeted for improvement). It is within walking distance of West End and the University yet a very poor area with a moderate to high crime rate. Good luck though!

First off congratulations on your successful BRRRR @Marty Bills! It's encouraging to hear that even in spite of newbie mistakes, you and your wife still did well!!! I'll be sure to keep in mind to find a good contractor first and have them walk through any potential properties beforehand! Out of curiosity, what did you all budget for rehab initially? 

Hi @Ali Boone! You're more than welcome. I'm excited that I'm learning so much from this post. I definitely look forward to your blog and hope you will return to post the link!

Thanks @Ian Walsh. I certainly agree, especially after all the reading and learning I've been doing here on BP!

@Brent Coombs, I really like your point. The value-for-money Contractors does seem key. Any advice on the best way to find contractors when going into a huge rehab project? I'm sure each market differs, but any insight would be appreciated!

Thanks @Brian Lacey. Good point. This is definitely what I'm leaning toward, especially when considering the difference in equity of the property.

I like that @Jon Q. "...by acquiring property that you cannot improve, you are taking more risk." I'll take to heart the sentiment that investors have a duty to improve property. As a newbie, this is not something that's seen/said very often.

Thanks for clarifying that @THU NGUYEN! So would it be safe to assume that refinancing successfully is a key component of a good, solid BRRRR strategy? In your opinion, is BRRRR a good option if the investor for whatever reason cannot refinance to pull the equity out? I'm trying to really understand the nuances of the buy and rehab strategy. I'm not sure if you saw, but another commenter faced issues with refinancing, thus my inquiry.

You're very welcome @Aquila Leon-Soon and good luck with your BRRRR deal! I'm certainly learning a lot myself.

Well I'm still learning about good REI practices @Lane Kawaoka, but I can definitely see how BRRRR can seem daunting and possibly not with much value added. Nevertheless, I'm starting to think that may just be when it isn't done correctly. I'm not sure yet though.

Hi @Amy A.! I'm not sure how I missed your post, but thanks for sharing your experience too! It's unfortunate that your BRRRR involved some hiccups. However, that's exactly something I feared could be a possible outcome with doing rehab... Your next point is definitely something I've thought of too. If I can't successfully increase the ARV and refinance to pull out equity to reinvest (or find tenants quickly enough), I may be better off investing in a TK property.

It's terrible that with all your work netted you about even; however, I'm sure it was an awesome learning experience - thanks for sharing!