All Forum Posts by: Tyrell Henry

For someone with no experience doing a BRRR investment out of state EVERYTHING has to go right . You have to find a great deal , in a good area , find a great contractor who can get things done fast and priced right , you have to then find a great tenant who will pay the rent .

This is hard to do , even harder long distance '

As a contractor I can tell you this , rehabs almost always go over budget , and take longer than expected . There is always a delay on supplies , problems that come up , permits and inspections .etc .

Investing is NEVER a sure thing if it was everybody would be doing it .

Thank you for that, i'm not sure how I will figure this out but this is something that I have to make work. If anything I may have to take my cuts and bruises locally before out of state.

A good way to learn is in your own back yard .

Too expensive in my area.

0 Votes

Quote from @Matthew Paul:

This is hard to do , even harder long distance '

Investing is NEVER a sure thing if it was everybody would be doing it .

Thank you for that, i'm not sure how I will figure this out but this is something that I have to make work. If anything I may have to take my cuts and bruises locally before out of state.

0 Votes

Quote from @Tyrell Henry:

Quote from @Samuel Diouf:

You can buy properties that work in your price range in Ohio. But I would start with something either turnkey or light value-add, so you can start forming your boots on the ground team with less pressure and risk. Once you feel you've built a strong team with your first property, I would start buying more aggressively and taking on bigger projects.

I suggest reading this BP article on the core 4.

https://www.biggerpockets.com/blog/core-four-real-estate-team

It's risky to start out with a BRRRR, especially if you don't have capital for reserves.

Thank you for that , when you say turnkey are you meaning with a conventional loan, or the same BRRR process and just buy a somewhat turnkey property?

0 Votes

Quote from @Samuel Diouf:

I suggest reading this BP article on the core 4.

https://www.biggerpockets.com/blog/core-four-real-estate-team

It's risky to start out with a BRRRR, especially if you don't have capital for reserves.

0 Votes

Quote from @Remington Lyman:

Quote from @Tyrell Henry:

Hello,

I am a new investor and I am looking to use a hard money loan to purchase my first rehab property. I am looking to do an out-of-state deal but my head is all over the place right now. When I was trying to do a BRRR my mentor told me that the limit was 50,000 minimum on a purchase, not including the rehab. Now that I am trying to get back into the BRRR process the lender that I am dealing with says the lowest amount that they can loan is 75,000 and they could only loan up to 50% of that for the rehab which is about 35 to 36,000. I am stuck between Alabama and Ohio as a place to invest, but it seems that this limit constricts me more than I imagined. As a new investor, my head is all over the place so if anyone could give me tips or any hints as to where I can find a lender to help my situation that be great. Thanks in advance.

If you are a new investor I would recommend doing more of a turnkey deal to start with. You may not be able to pull out your money on the refinance, but it will enable you to learn the skills needed to do a BRRRR with hard money later on in your career. I feel that a new investor doing a BRRRR is too risky and does not have a high success rate. I started off with a few house hacks before I did a BRRRR here in Columbus, Ohio

Thank you for that, I have two properties that were turnkey in my local market. Although they were through government assisted programs. Are you referring to something different as in a BRRR that is almost turnkey?

1 Vote

Hello,

4 Votes

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $165,000

Single family condo that I purchased using my VA loan

What made you interested in investing in this type of deal?

The market... That being said being so quick to grab na property at my young age it may not have been the best deal; but I put 0 money down and actually got paid to purchase this property so I guess I didn't do too bad.

How did you find this deal and how did you negotiate it?

I found this deal on the MLS and used tools such as inspection and appraisals to bargain a few thousand off of the loan.

How did you finance this deal?

With the VA loan, although this is not an initial investment property I intend to make it one sooner or later.

How did you add value to the deal?

As I am living in the property I am updating things such as the bathroom, paint, cabinets, countertops, and doors. It may not add much value but I am hoping it'll bring up the rental rates when that time comes.

What was the outcome?

Still in the process.

1 Vote

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $260,000
Cash invested: $17,000

This is my first investment property which is a duplex.

What made you interested in investing in this type of deal?

House hacking which will open up doors to become financially free.

How did you find this deal and how did you negotiate it?

I found this deal on Zillow and I wasn’t very aggressive with my negotiations but I did get the price down 20k.

Lessons learned? Challenges?

Run my numbers and to actually walk to property with a purpose, also I got the first time jitters out of me!

2 Votes

All Forum Posts by: Tyrell Henry

Tyrell Henry has started 3 posts and replied 8 times.

Post: Newbie Investor needs help with lending

Post: Newbie Investor needs help with lending

Post: Newbie Investor needs help with lending

Post: Newbie Investor needs help with lending

Post: Newbie Investor needs help with lending

Post: Newbie Investor needs help with lending

Post: 2nd Home purchase using VA loan

Post: My First Rental Property