All Forum Posts by: Thomas McNally

My primary residence is currently being remodeled- new kitchen and bathrooms. My contractor eliminated a window in the kitchen and pulled some vinyl siding from the garage to replace. 
Last week I received a letter from my insurance company stating they were going to discontinue my policy due to the current condition of the property (missing siding) and due to the fact that I am not currently living there (which is not true).

I contacted my insurance broker and due to the fact my current insurance company disclosed the cancellation, they could not find another company that would insure the property.

I just filed a dispute with the state. Has anyone here experienced something similar and have any advice?

Thanks @Alecia Loveless! That’s my plan, to ride out my current job til closure (1-2 years) while buying properties and growing my portfolio.

@Gregory Schwartz that’s a hell of a journey! I appreciate your insight. I have thought about pivoting from my current career (industrial construction) to a W2 real estate career to further grow my knowledge… my side hustle is actually captaining a charter fishing boat which has always been my life passion and dream career. My ultimate end goal is to replace my current w2 salary with RE cash flow and work full time on the boat.

Thanks for the advice @Mark Sanderson! I can definitely see myself doing a few fix and flips, especially in the beginning of my journey. 

This week it was announced that my job site will be permanently closing its doors within the next couple years. My goal has been to go full time into real estate and I have been working as much OT as possible to build more capital.

I purchased my first LTR two years ago and the net cash flow is $500/ month. Purchase price was 145k and after a 15k rehab the current estimate is about 220k.

I’m currently remodeling my primary and once that is complete I will have about 250k in equity.

My minimum goal for cash flow from my portfolio once I leave my job is 5k a month as I have a side job already in place. I'm interested in using private money to get started and continue using the BRRRR method as I love value add and I'm able to do a lot of the work myself. I do not yet have an LLC set up.

Long story short, I’m just looking for a little advice/ motivation to start a successful dive into full time real estate investing!  

@Evan Polaski thanks for clearing that up. In my previous example I was thinking about taking out $150k in the refi of the $335 ARV. This would be enough to cover the initial expenses and move on to the next BRRRR property. Also at $150 the property will still cash flow about $200 a month, versus I taking out more equity and hardly having any cash flow.

I've been running the numbers on my first BRRRR and am wondering how much equity everyone is pulling out on their Refi. Purchase price is $189k, estimated 40k in rehab with ARV conservatively at $330k.
How much equity, and why, would you pull out? Thanks in advance.