All Forum Posts by: Tim Lounibos

@Axel Meierhoefer Got it, thank you!

 I had not heard that. Thanks, I like it! :D 

I am holding for cash flow and long-term appreciation (so market's not a concern for that).

The reason seasoning comes into play is because I have limited funds so want to make sure that I can purchase all-cash, force appreciation, and then do a cash-out refinance based on the higher ARV so that I have enough cash funds to repeat the process. This will allow me to continually make all-cash offers and increase our monthly cash flow to the point where my wife can retire (if she wants to) by the end of 2027 (and I have other specific goals to go along with that one). Does that make sense?

Absolutely, yes! Forgot to mention this benefit of all-cash purchases @Sarah West. You'll be a much more appealing buyer if the seller knows that you aren't using a traditional lender. The sale can close in around ten days as opposed to a month.

Thank you, this totally makes sense to me. Yes, the BRRRR method has been calling my name.

@John Morgan (I have a cousin with that name ;-)

Thanks for your thoughts and that's the path I've been leaning heavily towards. Bit of a tangent, but how did your properties fare during the recent winter storm and power out issues? Thanks, again, for your reply.

Essentially, because if the numbers work, I believe it makes sense to buy in any market. I'm buying to hold so can ride out any dips. I just want to make sure I have cash to continue buying... Thank you! :-)

Thanks, Henry. I was all gung ho to go full board into the BRRRR but will probably a do milder rehab for now. I'll pay attention to the market till mid-April then make a decision on which way to invest. A nice cashflow is definitely important to us. Right now, I am leaning towards all cash...

Essentially, the idea is to purchase with all cash. If you can then do something to raise the value of the property -- force appreciation -- and then after the seasoning period refinance off the ARV (After Repair Value) for a cash out loan (a lender is not allowed to refinance a home that's been purchased with all cash until six months after close of escrow), you can then turn around and have the same amount of cash or very possibly more to use for your next investment. If you repeat this process, you theoretically do not run out of cash. You can keep investing and growing your portfolio... And I'm glad you asked the question. It's how we learn. I was asking the same question at the beginning of last month.

@Debbie Partain Sounds great and congrats and right back at ya! Thank you very much and wishing you the best on your new adventure... It's exciting!

@Chris Davidson

It does, thank you. My gut is telling me all cash method is the way to go.

I appreciate your advice (and I will keep Boise in mind in the future)!