All Forum Posts by: Tyrone Osilesi

Typically with the BRRRR method, you're buying a distressed property "AS-IS" with cash and are only financing it with a lender once after you've completed its rehab and allowed for some forced appreciation. I guess you could find a lender to finance a distressed property and essentially buy it twice though.

You'd definitely want to make sure rents in the area can support and pay for your new mortgage based on its ARV allowing for capex, property managers, vacancy, etc. and still cash flow.

I don’t think any of us can predict the future with respect to interest rates and what the market will do. Best we can do is get as much data as possible to assess a deal, get solid about your numbers, and strike if it makes sense for you. Good luck!

I've found it useful to learn how to figure this out on your own via sites like Zillow, Realtor, and Homes.com. Do this enough and you begin to quickly identify trends based on all sorts of indicators like age of property, square footage, bedroom/bath count, etc. You can and should also ask your realtor to pull comps within a 0.5 radius of the property based on recent sales prices. It's not a perfect science, but you only need to be ballpark with the figures I find. Lastly, you may also consider hiring your own appraiser, but no guarantees that the estimate ARV they find is going to be the same as the lenders appraisal. Good luck!

Hey Cleveland investors!

I am an out of state real estate investor with a few properties in Western MI. I'm looking to expand and grow in the multi-family arena in the Cleveland market. Seeking a dependable general contractor I can consult with on various types of deals who has solid contacts with any and all contractors. Feel free to reply or DM me pls. Thanks!

Hey Cleveland investors!

I am an out of state real estate investor with a few properties in Western MI. I'm looking to expand and grow in the multi-family arena in the Cleveland market. Looking for a solid property manager with great connections to join my core 4! Feel free to reply or send a DM. Thanks!

Absolutely! Study the BRRRR method. Good luck!

@Brad Peralta Rather than trying to estimate the rehab costs yourself, this is where I rely on the professionals. I'm in the process of completing an out of state BRRRR now and I had 2 general contractors (whom I met and vetted personally pre-COVID) go out to the property and provide me with estimates with everything itemized. I'm also hiring an appraiser to conduct an after rehab appraisal of the property. It's an upfront expense that I may lose out on, but I look at it as a small upfront expense that can potentially save me thousands.

It can be done. I dont know anything about those particular markets, but I recently completed a BRRRR in western MI and I live in VA. What gave me the confidence and insight to do it? Reading Long-Distance Real Estate Investing by David Greene, establishing my core 4, listening to tons of podcasts on the topic, and jumping in. Good luck!

It'll be tough for you to BRRRR unless you bring in a partner with a more favorable credit profile. Lenders are going to take into consideration your credit profile during the refi and that will very likely negatively affect you. I know it sucks to hear, but remedy that financial situation first would be my advice. Or, find other ways to invest in RE. Good luck!

Have you tried a hard money lender?

Sounds like you’re doing it! Keep paying down your debt and if you haven’t already open a few credit cards that you use and pay off entirely each month. Good luck!