All Forum Posts by: William S.

@Brie Schmidt @Heidi Wilson @Nicholas Scatton

I will talk to my lender. The balance will be paid off by the Refi. If I can’t go over 30% for the credit card, does opening up more than one hurt the Refi.

I'm looking to achieve my first BRRRR this year.

In order to do so I will be buying the home with 25% down using my own cash and using private money and opening up credit cards to help with the rehab.

The credit cards are 0% interest in the first 12 months. I’ll be able to Refi before then.

Will using the credit cards hurt my refinance?

@Ernesto Hernandez @Jay Hinrichs

Is my comment above correct? Or am I missing something?

@Ernesto Hernandez

How many rentals again? 20?

There's two schools of thought I've seen on CapEx

1. Set aside $150-$200/m per property + a few grand in reserves

• Example: 3-5 rental portfolio...1 roof needs replace in 2030. Set aside $X for total replacement cost, but have a few grand per home set aside as an extra buffer.

2. Have several thousands in reserves + large portfolio to use cash flow to pay for expense

• Example: 20 rental portfolio...1 roof needs replaced. Use reserve fund + income from 19 rentals

@Ernesto Hernandez

$50k per rental or $50k for the portfolio?

It doesn't seem that he goes into much detail on his cash flow. I'd like to see a more concrete breakdown in each of his deals. He seems to simply skimp over the CapEx. How isn't he budgeting for maintenance other than "reserves." More detail is needed.

Market rents are $950-$1,000 for this property type. My rental rate is $975/m, but we dropped it to $950/m a month ago.

I flew out to visit the property recently and wasn't pleased with the turn over job that occurred. 

I think a few things are at play

1. Time of year

2. PM

3. Leasing agent

As I said. My team is better in Milwaukee, even though the market isn't as good as KC.

Prices have gone up in the area. If I were to sell I would most likely break even or lose a few grand. However, deploying the funds to Milwaukee is a better long term solution.

I have a rental property in South KC that has been vacant for four months now. The property went vacant in October 2017 and is still not rented. I understand that winter months are not ideal times to get a property rented, but isn't four months way too long?

There have been some errors between the PM and leasing agent...

I have had a lot of success in my local market (Milwaukee). I've built a great team (realtor, construction workers, and a great PM). I am debating if I should do one of the following...

• Sell the KC rental and apply those funds to my local market
• Hire a new PM
• Wait it out till Spring

Thoughts? Advice?

What does the snow removal consist of? Why does the landlord pay gas? What about the turn over costs/make ready/lease fees, etc.

@Joe Villeneuve

8% fixed rate?

Was your answer yes to having sizeable portolio to make these major costs easier to ride out?