One aspect I didn’t hear you talk about, is the extra cost to carry the mortgage while rehabbing the house and have no tenant paying rent during that time.
Correct me if I’m wrong, but I thought he mentioned that hard money loans will typically be interest only. So maybe during the rehab phase (3-6 months) you’re only payment other than rehab costs will be the interest payments on the amount borrowed, which will vary based on how much you were loaned. Hope this helps?
How is David turning a SFH into a 4 to 6-unit property? Is he getting the city to change it a multifamily? Most areas only allow up to 2 ADUs (normal and junior).
I wanted to do a cash out refinance on a duplex I purchased in 2019 but just recently found out that the state of Texas doesn’t allow cash out refi on multi family properties. The only solution to this problem is to re plat the property into two.
@@paulcarlson298 Fannie Mae and Freddie Mac will not allow a cash-out loan in Texas when an owner occupies one of the units in 2 to 4 unit multi-family property.
I listened on Spotify and then watched again on here. The info you guys give is so helpful. I've been able to close on 5 properties so far this year! Thank you for the great information!
@Starie Blue Hello 👋 Nice connecting with you. I'm sorry if i might appear intrusive. I’m just trying to connect with open minded and ambitious individuals when it comes to finances and creating a second income stream. Do you keep your options open?
I have two options to find my first property down payment of 80k: cash refi on my current home at 4.2% (current mortgage at 3.6%) I have 350k in equity or get the money from my friend at 4.5% with no closings, inspection etc. needed and secure it on a second mortgage on my home.
The ARV is based on the comparable properties in the area. I would assume the rehab is based on what a contractor or professional estimates but I agree, I would also like to know.
ADU; In my area I can buy a 750 sq ft house for 300k+ but I can build it for less than 100k as an ADU. Both would bring in the same rent close to 2k but for the house the payment on a mortgage would take all of my rent money and an ADU would cash flow massively. If an appraiser says it only added 20k in resale value what do I care if I'm making 20k a year in rent??? Besides, building an ADU is actually providing and producing homes as opposed to just removing already built houses from the market to convert them into rentals.
It’s about time someone finally mentioned that you don’t have to worry about leaving a little money in the deal. I’ve been passing up deals for two years because my numbers always show me leaving a few bucks behind and I thought I thought you had to be able to get all your money out. Everybody’s so busy throwing buzz words around they forget all the details brrrr brrrr brrrr brrrr. Kind of getting tired of hearing that phrase :-) my grandfather did it 50 years ago and just caught a cash out refi.
So basically, you refinance, pull out your money and use that money to do it again, right? New at this so please be patient with me. So the whole concept would be to keep all the houses as rentals? Or can we flip it?
So I bought my first duplex 2 years ago trying to do the burr I've been trying to get my cash out of the property having a very hard time I put 25% down have had both units rented with a positive cash flow and I don't know what has changed but just can't seem to get a HELOC going to try a total refinance here shortly if the interest rates come down a little more I don't know maybe it's just Michigan
What is the process for switching unit counts and getting it rezoned for more? Best way to estimate costs? My area is very hard to get anything in, but I did see a run down duplex with both units being 2-1 above my city listed at 550k, doing the calculations it wouldn’t generate cash for me, unless I converted it to to 4 1-1 units which seemed possible, but I don’t know how to estimate cost of adding bathrooms and cutting the existing units.
Another great video lads. Thank you for laying out the BRRR model. I just wish you would go deeper into the numbers, especially the rehab numbers. When I complete my BRRRs I an very conservative with the rehab numbers, and timeline, as the projects always run late and above the initial estimate. I think David and the crew should also add a carrying cost estimate to the analysis, as there will be extra costs (monthly utility bills, mortgage bills, brokerage advertising fees, ect...) you have to pay while renovating the project. It would be great if they did a deep dive into these extra costs that can come up during the renovation/ stabilization timeline, but overall a great podcast and I am happy I found you guys :)
I agree with you! They should definitely add Carrying cost estimates into the Analysis. Alot of our Newer Borrowers don't think about adding that in their when making the Max Allowable Offer. It can offset the numbers, and returns pretty drastically. People also don't factor in atleast a 10% spill over on renovations. Where are you doing your investing at?
I don’t guess I quite understand. When reading about cash out refi’s, I keep seeing that you can take a chunk of the amount of equity you have in the property. How would they take $280K out if the difference between the ARV ($350K) and the amount financed ($176) is only $174K. If he got $280 out, wouldn’t he be left with only $104K after he paid off the original loan?
Yes I feel like they didn't explain this part too clearly. Total cash into the home is $99k (44k down payment + 50k repair cost + 5k closing cost) so after they pay off the 176k loan balance with the 280k cash-out, they are left with 104k which is more than the money initially put in
I always see these ARV and repairs are already put in . Can you show how you get ARV and estimate repairs from Zillow. I feel like that is one of the most important parts but if the numbers are already there it is not very helpful.
Does the calculator assume you are brining the rehab costs in cash, or financing them (i.e. construction loan, HML, etc.)? How do you use the calculator to handle these two different ways to do a rehab?
I've probably watched 200 hours or your show in just the last 3 weeks. Amazing stuff. How would you set up the utilities for the ADU if planning to rent out the house as well? Thanks David you're a true genius man.
Hello, thank you all for the great BP videos. I'm wondering does one need to have basically no credit debt in order to get to the refinance step, and have this work as described? ,Or pretty much? ty!
One question, how much is the original loan for? Does that loan cover the $50k for renovations? Or just for the purchase price? What if you don’t have the cash for 20% down and $50k for renovations? Thanks!
Is the analysis of the deal and showing where the difference ARV and the "money into the deal" the 20% delta that would otherwise be a down payment, assuming that 80% loan is coming from a private or hard money lender ? Or do you have to actually fund a down payment from other funds?
Is it 80% of 350 minus what's owed on the property you get the home equity loan of 280 . Or 80% of 350 minus what you owe on the loan is what they give you a home equity loan for ?
Am I misunderstanding? or at 58:31 did he mean **20% of the purchase price lined up perfectly with 10% of the appraised value? If that is not what he meant then I don’t understand how a bigger percentage of a bigger number can line up with a smaller percentage of a smaller number
Mind blowing! Ive been a fan early this last yr and We are in our first property finishing on rehab. My question is how long should we wait before we refinance? And how many times can you do a cash out refi in 1 property? Thanks!
When you are looking at a house when when do you bring a contractor in to figure out how much the rehab will be do u just out in an offer and them make a contract contingent on an inspection or a contractor coming out to figure up the actual numbers for the rehab for the final offer hows that part work
How do you manage the permitting? You’re taking a SFH to a 5 unit so there must be zoning considerations as well as the crazy California safety standards of construction. How is that risk managed? Thanks!
Why is there never much discussion about dealing with zoning on these shows? Here we have a property being turned into multiple units and nothing is said about how the property or area is zoned?
I'm doing a househack a lot like this in south fort worth. 6/4-7/5+an apartment in detached garage. Won't cut up into multiple unit but will rent room by room
I really need to understand how it works when you sell the house down the line. What are the tax implications of a cash out refi that is used to buy another property?? Someone please helppp a girl out
This was user helpful! I am trying to save money for a down payment for a FHA loan so I can purchase a triplex or something of that sort for house hacking. I want to use this as my entry into real estate. Is there an episode y’all should e done that goes in depth (like this episode) on how to house hack/rent?
So, if we add up all the expenses, i.e purchase price, closing costs and rehab costs, and even the closing costs on the refinanced ARV, we get 280k, but what I'm not seeing is a down payment. Is that because this approach assumed a hard money load with zero down? And if we are early in our investing and using a conventional loan, requiring we are putting 20% down or 44k, would this deal no longer make sense? How should I look at the amount I have in the deal with a conventional loan approach and compare to 80% of the ARV? Would love some feedback on assumptions here!
I also don't hear anyone talking about what to do if you got a 4% loan on an BRRRR in December 2021 and rates were 6% six months later when you expected to refinance. Obviously changes the new loan substantially and drives up the costs of your BRRRR deal in exchange for your refi out and repeat. I plan to just hold of course, but I'm not feeling like it's wise to take out the equity at a higher interest rate. Is that short sighted?
Quick question, Can I rehab a studio into a 1bhk and add value? Because, I am Not adding a square footage here. What are the various ways of increasing value of the property?
33:40 They just simply put the numbers, without explaining the rationale behind them. The real problem is determining the after repair value... not to say the estimated repairs
instead of doing hypotheticals, have you guys considered taking in callers to do a real BRRRR? I just purchased a foreclosure (my first one - some big banks can be a pain in the butt!) and feel like I"m using the BRRRR but I feel like I am missing something within these steps... Yes, I know you guys say if you know the acronym you wont miss any steps...... I used a conventional loan (7ish%) its an 85% LTV. Purchase price is 118,500. Rehab est around 16K. Proposed appraisal ARV is 225,000. I am using funds from a previous BRRRR refi (HELOC) for this down payment. Property manager and I have done some due diligence and see where we can charge 1,700/mo rent. 3/1.75 partial brick / conventional foundation home. My banker already gave me the green light to HELOC this one in 3mo to obviously repeat. I am also a travel therapist where approx 50% of my income is tax free. I am almost debt free from a personal stand point - I have been using my w2 income to just get rid of my personal debt. No more credit card debt, my home health car (2020 Corolla) will be paid off the end of Feb '23, and i'm living in one of my rentals. I just have my truck payment left, no more college debt. I'd love some feedback. This home will be #12 for me. Been investing for about 8ish years but only came across the BRRRR about 2 yrs ago. I was kinda already doing parts of it but didn't know it - just made sense. Thoughts???? Sorry about being lengthy. Oh, I just got David's audio book about a wk ago - I have some time in the car since I do travel home health :)
Sorry, I don’t have any helpful info, but I do wish to congratulate you and wish you continued success. Very exciting for you to be on the verge of being debt free and with so many good things happening.
I’m really interested in this method. I’m 26 and newly married. It’s amazing to see free advice without upselling expensive courses. This was great!
Lol you must have slept the sales pitch around 54min…
They're upselling their website and pro subscription. They also make money from TH-cam views
Lol you just wanted to advertise you were young and married. Nothing to gloat about.
😊😊😊😊😊😊😊😊😊😊😊😊😊😊❤
😊😊
Skip to 7:00 to start the video
About to start the 3rd R on a 4-plex I purchased last year. There's no problem that can't be solved. Key is to buy right.
This is genius! $5k in an hour? I’m in the wrong career my whole life. Thank you for this phenomenal advice and strategy.
I love that you provided a practical and detailed walkthrough of an actual deal.
This video was incredibly helpful. Thank you both for producing quality content!
37:10 - A 100% "cash out refi' is a home run
59:13 - the various roles, and people playing their position for a flip ⭐
One aspect I didn’t hear you talk about, is the extra cost to carry the mortgage while rehabbing the house and have no tenant paying rent during that time.
Correct me if I’m wrong, but I thought he mentioned that hard money loans will typically be interest only. So maybe during the rehab phase (3-6 months) you’re only payment other than rehab costs will be the interest payments on the amount borrowed, which will vary based on how much you were loaned. Hope this helps?
They talked briefly about it. They mentioned minimizing your holding costs.
I was wondering the same thing, where do you factor that into your calculations.
I don’t listen to podcasts that start with adds. So thanks for keeping them short atleast.
How is David turning a SFH into a 4 to 6-unit property? Is he getting the city to change it a multifamily?
Most areas only allow up to 2 ADUs (normal and junior).
My dad is a Contractor..They add the Materials of how much is it..then He muply that by four..if the material is $1k labor and materials will be $4k
You’re not earning exponentially then…. Send an emaiI now to…I’ll enlighten you on something.
Biggerpockets002
GmaiI
Look down below
I wanted to do a cash out refinance on a duplex I purchased in 2019 but just recently found out that the state of Texas doesn’t allow cash out refi on multi family properties. The only solution to this problem is to re plat the property into two.
How so? I know people in DFW who has done cashouts...
@@paulcarlson298 Fannie Mae and Freddie Mac will not allow a cash-out loan in Texas when an owner occupies one of the units in 2 to 4 unit multi-family property.
Ah, but non qm is allowed. Seems like a weird rule that doesn't make sense
@@jacobrubio2593but if you don’t live there then you can?
I do like the new format with the nuts and bolts on deals and help guard the pitfalls.
I listened on Spotify and then watched again on here. The info you guys give is so helpful. I've been able to close on 5 properties so far this year! Thank you for the great information!
thats awesome
How in the world are you able to do that
@Justin J I have that in equity. I guess it's all relative to location. No way a newbie is doing something like that in California.
@CWR Hello there
@Starie Blue Hello 👋
Nice connecting with you. I'm sorry if i might appear intrusive. I’m just trying to connect with open minded and ambitious individuals when it comes to finances and creating a second income stream. Do you keep your options open?
I have two options to find my first property down payment of 80k: cash refi on my current home at 4.2% (current mortgage at 3.6%) I have 350k in equity or get the money from my friend at 4.5% with no closings, inspection etc. needed and secure it on a second mortgage on my home.
Which option did you end up going with?
David is such a great communicator 👌
It would be nice if you went into a quick breakdown of how you picked the rehab and arv numbers you picked
The ARV is based on the comparable properties in the area. I would assume the rehab is based on what a contractor or professional estimates but I agree, I would also like to know.
Please post more videos about this property. would love to see how it turns out!
I haven't finished the video and I already like it, really useful information and well explained thanks
Thank you, are you also familiar with staking?
My brrrr didn't appraise as much as I wanted any ideas?
Bought for $52k renovated for $9k appraised for $80k. Bank for refinance will only give $40k.
ADU; In my area I can buy a 750 sq ft house for 300k+ but I can build it for less than 100k as an ADU. Both would bring in the same rent close to 2k but for the house the payment on a mortgage would take all of my rent money and an ADU would cash flow massively. If an appraiser says it only added 20k in resale value what do I care if I'm making 20k a year in rent??? Besides, building an ADU is actually providing and producing homes as opposed to just removing already built houses from the market to convert them into rentals.
Is the discount still available?
send an email to..
Biggerpockets002
GmaiI
Please look carefully here
It’s about time someone finally mentioned that you don’t have to worry about leaving a little money in the deal. I’ve been passing up deals for two years because my numbers always show me leaving a few bucks behind and I thought I thought you had to be able to get all your money out. Everybody’s so busy throwing buzz words around they forget all the details brrrr brrrr brrrr brrrr. Kind of getting tired of hearing that phrase :-) my grandfather did it 50 years ago and just caught a cash out refi.
Same! Everyone always talks about infinite cash on cash returns. It’s made me pass up on deals too
So basically, you refinance, pull out your money and use that money to do it again, right? New at this so please be patient with me. So the whole concept would be to keep all the houses as rentals? Or can we flip it?
Just refer your questions to my email. I’ll enlighten you on a easier level especially on soemthing.
Biggerpockets002
GmaiI
So I bought my first duplex 2 years ago trying to do the burr I've been trying to get my cash out of the property having a very hard time I put 25% down have had both units rented with a positive cash flow and I don't know what has changed but just can't seem to get a HELOC going to try a total refinance here shortly if the interest rates come down a little more I don't know maybe it's just Michigan
What is the process for switching unit counts and getting it rezoned for more? Best way to estimate costs? My area is very hard to get anything in, but I did see a run down duplex with both units being 2-1 above my city listed at 550k, doing the calculations it wouldn’t generate cash for me, unless I converted it to to 4 1-1 units which seemed possible, but I don’t know how to estimate cost of adding bathrooms and cutting the existing units.
send your questions to my email
Biggerpockets002
GmaiI
Another great video lads. Thank you for laying out the BRRR model. I just wish you would go deeper into the numbers, especially the rehab numbers. When I complete my BRRRs I an very conservative with the rehab numbers, and timeline, as the projects always run late and above the initial estimate. I think David and the crew should also add a carrying cost estimate to the analysis, as there will be extra costs (monthly utility bills, mortgage bills, brokerage advertising fees, ect...) you have to pay while renovating the project. It would be great if they did a deep dive into these extra costs that can come up during the renovation/ stabilization timeline, but overall a great podcast and I am happy I found you guys :)
I agree with you! They should definitely add Carrying cost estimates into the Analysis. Alot of our Newer Borrowers don't think about adding that in their when making the Max Allowable Offer. It can offset the numbers, and returns pretty drastically. People also don't factor in atleast a 10% spill over on renovations.
Where are you doing your investing at?
Awesome awesome stuff. Very informative!
You FIEND! now the DUCKTAILS theme is STUCK IN MY HEAD. Thank you! :)
How do you use the BRRRR calculator if you’re using a fixed rate HELOC?
Love BP,love David and Rob.
Newbie here trying to understand the process... Why/Do you need to rent first in order to refinance?
I don’t guess I quite understand. When reading about cash out refi’s, I keep seeing that you can take a chunk of the amount of equity you have in the property. How would they take $280K out if the difference between the ARV ($350K) and the amount financed ($176) is only $174K. If he got $280 out, wouldn’t he be left with only $104K after he paid off the original loan?
Yes I feel like they didn't explain this part too clearly. Total cash into the home is $99k (44k down payment + 50k repair cost + 5k closing cost) so after they pay off the 176k loan balance with the 280k cash-out, they are left with 104k which is more than the money initially put in
What if you use a heloc to buy a home outright?
What about zoning....knowing you can add rooms etc before buying
I always see these ARV and repairs are already put in . Can you show how you get ARV and estimate repairs from Zillow. I feel like that is one of the most important parts but if the numbers are already there it is not very helpful.
I want to teach you something just shoot an email to
Biggerpockets002
GmaiI
Just to add, that you're my Gurus, all your content is very profitable for all of us, thanks Bigger Pockets !
“A master lease” and have each unit subleased. How can I find more information about this?
Does the calculator assume you are brining the rehab costs in cash, or financing them (i.e. construction loan, HML, etc.)? How do you use the calculator to handle these two different ways to do a rehab?
Perfect timing my lil sis just sent me two homes that def need repair👨🔧 👩🔧
I gotta do something
But how do you make it a duplex if it’s a SFR? Don’t you have a problem with that and city?
I've probably watched 200 hours or your show in just the last 3 weeks. Amazing stuff. How would you set up the utilities for the ADU if planning to rent out the house as well? Thanks David you're a true genius man.
So, are you able to get a contractor to give you a reno estimate before you pull the trigger on the house?
Just shoot me an email I want to enlighten you on something
Biggerpockets002
GmaiI
Did he ever post updates on this house?
Why would you refinance before adding in the units??
*it requires money to make money this is the best secret I have ever heard we don't make money we make multiple money*
Who can you approach to get loans on a rental? Local banks?
Thanks you for reminding me that I'm not a failure for leaving some money in my BRRRR's.
awesome breakdown!
Hello, thank you all for the great BP videos. I'm wondering does one need to have basically no credit debt in order to get to the refinance step, and have this work as described? ,Or pretty much? ty!
One question, how much is the original loan for? Does that loan cover the $50k for renovations? Or just for the purchase price? What if you don’t have the cash for 20% down and $50k for renovations?
Thanks!
Then you need to either save up the cash or figure out a way to finance that as well…
This website can only be used in the US?
Will you guys add a Short Term Rental calculator to the BP pro calculators?
How this method is applicable to non- citizen here like on H1B or F1 visa?
What if you are using a hard money loan for the purchase and the rehab of the property? How do you calculate that?
Calculate what
Hey David, I just purchased my pro membership, how can I get your book:)?
Is the analysis of the deal and showing where the difference ARV and the "money into the deal" the 20% delta that would otherwise be a down payment, assuming that 80% loan is coming from a private or hard money lender ? Or do you have to actually fund a down payment from other funds?
Refer your questions to my email
Biggerpockets001
GmaiI
Is it 80% of 350 minus what's owed on the property you get the home equity loan of 280 . Or 80% of 350 minus what you owe on the loan is what they give you a home equity loan for ?
Am I misunderstanding? or at 58:31 did he mean **20% of the purchase price lined up perfectly with 10% of the appraised value?
If that is not what he meant then I don’t understand how a bigger percentage of a bigger number can line up with a smaller percentage of a smaller number
Thanks for giving back, in the way of education!!!!
What was the rent estimator website?
I use Zillow rent estimate. I think BP has a calculator for that too,as well as other websites
What did you need to do to accommodate parking for each of the units? Did sufficient parking already exist?
The permiting for this deal could have been a whole episode and I'd be very interested in hearing more about it.
Mind blowing! Ive been a fan early this last yr and We are in our first property finishing on rehab. My question is how long should we wait before we refinance? And how many times can you do a cash out refi in 1 property? Thanks!
The interest rate hikes , cost analysis? Do a comparison or wait til end of the year
Is there any work that you do yourself? Or is everything done by a contractor?
When you are looking at a house when when do you bring a contractor in to figure out how much the rehab will be do u just out in an offer and them make a contract contingent on an inspection or a contractor coming out to figure up the actual numbers for the rehab for the final offer hows that part work
Send an email to’
Biggerpockets002
GmaiI
how long does it take to refi ? 1 year?
Why are the bid line items rounded numbers? I'm a contractor and that rarely happens with my bids. Is this just a mock up or real bid?
Is the property taxes based on the current price or the price after the renovation.
is there an update video on this brrrr? would really like to see how it turned out
Anyone know if they still honor the deal on this?
How do you manage the permitting? You’re taking a SFH to a 5 unit so there must be zoning considerations as well as the crazy California safety standards of construction. How is that risk managed? Thanks!
I was thinking the same thing. In California it is illegal for a property owner to collect rent from an unpermitted unit.
I believe they said it was in California, so yes I’m wondering the same thing.
Just signed up with the code thanks for the discount.
How can I receive the BRRRR book??
I wanted to watch the entire podcast on YT but it was on Spotify first. Regardless great podcast
Why is there never much discussion about dealing with zoning on these shows? Here we have a property being turned into multiple units and nothing is said about how the property or area is zoned?
David. Where do you roll Jiu jitsu?
I'm doing a househack a lot like this in south fort worth. 6/4-7/5+an apartment in detached garage. Won't cut up into multiple unit but will rent room by room
What is 6/4-7/5+ ?
What method do you use to pull money out of the property?cash out refinance,heloc, home equity loan?
Cash out refi
does the bigger pockets calculator work for Canadian deal as well?
Is rentometer reliable in all markets? In other words, where should I trust it and where I should not? It seems quite off in Kansas.
send your questions to email
Biggerpockets002
GmaiI
Look down
Love it. This information is cold. 🥶
I really need to understand how it works when you sell the house down the line. What are the tax implications of a cash out refi that is used to buy another property?? Someone please helppp a girl out
For these types, goal is buy and hold
You could 1031 at some point if needed
Are you acquiring and refinancing in your own personal name or via an LLC or similar entity?
Thanks.
This was user helpful! I am trying to save money for a down payment for a FHA loan so I can purchase a triplex or something of that sort for house hacking. I want to use this as my entry into real estate. Is there an episode y’all should e done that goes in depth (like this episode) on how to house hack/rent?
Yes they have plenty of episodes on house hacking. And FHA Loans
3% down FHA loan
Airbnb
@1:02 David mentions the new property will be refinanced, but I thought most banks will only refinance after one year. I’m so confused.
Not all
As long as you have tenants
Starts at 4:08
Hey it would be cool if a "master class" would explain acronyms...What is a ADU...and know I'm not going to google during "class"
So, if we add up all the expenses, i.e purchase price, closing costs and rehab costs, and even the closing costs on the refinanced ARV, we get 280k, but what I'm not seeing is a down payment. Is that because this approach assumed a hard money load with zero down? And if we are early in our investing and using a conventional loan, requiring we are putting 20% down or 44k, would this deal no longer make sense? How should I look at the amount I have in the deal with a conventional loan approach and compare to 80% of the ARV? Would love some feedback on assumptions here!
I also don't hear anyone talking about what to do if you got a 4% loan on an BRRRR in December 2021 and rates were 6% six months later when you expected to refinance. Obviously changes the new loan substantially and drives up the costs of your BRRRR deal in exchange for your refi out and repeat. I plan to just hold of course, but I'm not feeling like it's wise to take out the equity at a higher interest rate. Is that short sighted?
THANX GUY'S! I'M TRYING TO GET INTO MY GOOD DEBT!
What's an ADU?
can you guys make an episode that covers ADUs?
There was an EP about ADUs a month or two ago.
We did! th-cam.com/video/Q5hhTxlWJ8g/w-d-xo.html
Quick question,
Can I rehab a studio into a 1bhk and add value?
Because, I am
Not adding a square footage here.
What are the various ways of increasing value of the property?
Does the calculator work outside US?
I signed up for pro with REPOD21 after listening to this podcast. How can I receive David's BRRRR book? Thanks!
hey how about a Seeing Green playlist?
33:40 They just simply put the numbers, without explaining the rationale behind them. The real problem is determining the after repair value... not to say the estimated repairs
How do you get the ARV? I think I missed it and cant find it
I dont understand how After Rehab Value was 75k more than the Total Project Cost, how do you calculate that?
instead of doing hypotheticals, have you guys considered taking in callers to do a real BRRRR? I just purchased a foreclosure (my first one - some big banks can be a pain in the butt!) and feel like I"m using the BRRRR but I feel like I am missing something within these steps... Yes, I know you guys say if you know the acronym you wont miss any steps...... I used a conventional loan (7ish%) its an 85% LTV. Purchase price is 118,500. Rehab est around 16K. Proposed appraisal ARV is 225,000. I am using funds from a previous BRRRR refi (HELOC) for this down payment. Property manager and I have done some due diligence and see where we can charge 1,700/mo rent. 3/1.75 partial brick / conventional foundation home. My banker already gave me the green light to HELOC this one in 3mo to obviously repeat. I am also a travel therapist where approx 50% of my income is tax free. I am almost debt free from a personal stand point - I have been using my w2 income to just get rid of my personal debt. No more credit card debt, my home health car (2020 Corolla) will be paid off the end of Feb '23, and i'm living in one of my rentals. I just have my truck payment left, no more college debt. I'd love some feedback. This home will be #12 for me. Been investing for about 8ish years but only came across the BRRRR about 2 yrs ago. I was kinda already doing parts of it but didn't know it - just made sense. Thoughts???? Sorry about being lengthy. Oh, I just got David's audio book about a wk ago - I have some time in the car since I do travel home health :)
Sorry, I don’t have any helpful info, but I do wish to congratulate you and wish you continued success. Very exciting for you to be on the verge of being debt free and with so many good things happening.
Don’t worry bout it, send an email to
Biggerpockets002’
GmaiI
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I love comment Good bones, great helpful info, thank you friends.😉