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More specifically this investor, who had $120,000 cash on hand wanted my opinion on whether he should fund the acquisition and renovation and complete one home at a time or use financing for the acquisition and renovation and by his estimation complete up to three properties at a time (with reasonable reserves) then refinance the properties upon completion to complete the BRRRR process.

For reference here is the breakdown of price based purely on cost/sq foot of this 700 sq ft cottage300K = $426/Sq ft280K = $398/Sq ft260K = $370/Sq ft240K = $341/Sq ft210K = $300/Sq ftThe intent is for personal use of this cottage as it cannot be a short term rental.I wrote a separate post regarding creative financing on this with the seller herehttps://www.biggerpockets.com/forums/50/topics/1171112-pleas... which may paint a little more color on the situation.I appreciate the help.

Hello everyone,
I just closed on my third property , and its a fourplex in St. Louis! Super PUMPED! (first fourplex)
I am currently in the process of figuring out the most effective way to fund the rehab.
With inte...

 16 terms you need to know in commercial real estate:1.Internal Rate of Return (IRR): A metric used to estimate the annualized return on an investment based on the timing and magnitude of cash flows.2.Cash-on-Cash Return: The annual income generated by a property expressed as a percentage of the initial cash investment.3.Discount Rate: The rate used to discount future cash flows to their present value in financial models; often represents the required rate of return.4.Capital Expenditures (CapEx): The funds set aside for property improvements, renovations, or major repairs.5.Gross Operating Income (GOI): The total income generated by a property before subtracting operating expenses.6.Operating Expenses: The costs associated with managing and maintaining a property, including utilities, taxes, insurance, and maintenance.7.Debt Service Coverage Ratio (DSCR): A measure of a property’s ability to cover its debt payments, typically calculated as NOI divided by debt service.8.Loan-to-Value (LTV) Ratio: The ratio of the loan amount to the property’s appraised value, used to assess risk in financing.9.Equity Multiple: A measure of the total return on an investment, calculated as the ratio of total cash flows to initial equity investment.10.Residual Land Value: The estimated value of land after deducting development costs and desired profit margins.11.Sensitivity Analysis: A technique used to assess how changes in key variables (e.g., rent, expenses, interest rates) affect financial model outcomes.12.Operating Pro Forma: A projection of a property’s income and expenses over a specified period, typically used for budgeting and financial analysis.13.Cash Flow Waterfall: A structured distribution of cash flows to different stakeholders in a real estate project, often involving equity investors, lenders, and developers.14.Leverage: The use of borrowed funds (e.g., a mortgage) to finance a real estate investment, potentially amplifying returns but also increasing risk.15.Equity Investment: The amount of money invested by equity partners or investors in a real estate project. 16.

And in reality it can take one major cap ex to drain months/years of cash flow, so ideally I’d prefer to fix anything with that could potentially become problematic within next few years with the financing used when purchasing.

I worked in banking, specifically consumer lending finance for nearly 6 years in the operations and underwriting side.

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If you don't have a truck that can haul a dumpster, getting a dumpster bin works well.. there are also a product here for smaller jobs called "bagster" you buy a mini dump bag that you would probably load in one day (i think the limit is 3000 lbs) and a local waste company will pick it up when you call them.