All Forum Posts by: Tucker Cummings

Love the BRRRR method but it's just one tool in a tool belt. You either get a property at a discount to complete the BRRRR method or you buy on terms favorable enough to get great cash flow.

I don't think there is a fault with the BRRRR method, just a fault with how it's taught. Most people are teaching that you MUST pull out 100% of your money. If you do that you'll have to sift through hundreds, maybe thousands of deals before you find that strong enough deal.

My approach is to just take action. I'll force appreciation and ride the organic market appreciation to refinance later. If I leave 10% ARV in a deal, that's a single. 7.5% is a double, 5% is a triple, 0% is a home run and if I get money back it's a grand slam. Also, I think the BRRRR method is much more important to pull all your money out if you're a full time investor. I have a well paying W2, so it's not as critical for me to get every dollar back.

My strategy is just holding $5000/door for emergencies. After that I put it in a Fidelity stock account and sell options.

Strategy I use is called the Wheel Strategy. Sell cash covered puts for income, then when you eventually get assigned you sell covered calls for income. Can usually make about 1% yield on your money per month, or 12% return per year.

@Zaakira Gallman

@Robert Shortsleeves is the best deal finder in Cumberland County. You just gotta be quick with his deals and know exactly what you're looking for :) give him your contact info so you can get on his buyer's list.

Once you get a deal, inbox me and I'll shoot you over my property manager and contractor. Good luck!

Not enough meet on the bone to make it a flip, and if it's in the Raleigh area you're going to have a tough time cash flowing.

If your intention is to flip, you'll end up paying 10% of the sale price in commissions, fees, etc.

So ARV is 235k, you'll get 211.5k in proceeds. 211.5k-184k (acquisition) - 20k (rehab) = 7500 bucks for a flip. Most flips people are either looking to make at least 10% of the sale price in profits or a minimum of 20k.

When I was first getting started, my wife had a hard time getting onboard because I was all over the place with what I wanted to do. One day I was talking about wholesaling, then it was multifamily, then BRRRR, then traditional financing, then single family, so on and so on.

Eventually it just came to that I needed to have a clear plan of action. "This is what I want to do with our money, here's when I want to do it, here's what happens if ____ happens, etc." Basically made it a business pitch and we decided to move forward together. 

You have to have your spouse on board for all your financial decisions. If they're not, then when things go wrong it can create a toxic environment. Real estate should provide the income to enrich your life with your spouse, not create more stress with it.

If the cash don’t flow, it’s a no go

Following this thread, as my wife and are planning to move to Austin in the near future. Very interested in what comes out of this.

So inspiring and awesome to hear this! I’ve been wanting to make the transition to Multifamily and this lighting a fire under me too. Congratulations!

Your current numbers aren't even taking into account maintenance, capex, vacancy. Even if the property is in good shape, you'll inevitably have repairs to take care of. On top of that, your cash flow will weaken after you refinance so you may be in the negative.

If this were my property, I'd sell take the 100k+ profits and 1031 it into a better cash flowing property. Maybe a small multifamily or just a few houses in a better cash flowing area.

The bottom line is your running a business, not a charity. Do you think if you stopped paying your mortgage to the bank they would say, "oh golly, you poor thing. I hear your story and feel you. Stay as long as you like without paying!" Absolutely not! What about when they need a repair done to the property or upgrades? I bet you sure wish you had the rent they were paying you so you could repair that HVAC without a second thought.

It's not having too much compassion, it's just being foolish. You can't walk into a restaurant and just say, "I'm really hungry" and expect them to give you free food. May be tough love, but it's the business. 

If you want to invest and want leverage and cash flow, look into options trading with covered calls, cash covered puts and LEAPs.