FIRST BRRR Complete! Details + Pictures!

304 Replies

Congrats @James Gates ! That's awesome to hear, I'm looking at doing the BRRRR strategy in the near future as well! I'm curious how you decided on the area of Huntsville, AL. I would like to invest in other areas but it is overwhelming trying to narrow down possible locations. What are some of the traits you were looking for that made you decided on AL?

@James Gates Congratulations James! A couple questions. Are all your properties in the Huntsville area? If not where else?

And how did you go about hiring your GC? (A big concern of mine when it comes to long distance investing) I'm assuming the physical trip to Huntsville was a big difference. Again Congrats!

@James Gates. Great story James. It was very inspiring I had to circulate it.  And thanks for taking the time to answer so many questions from so many folks as your answers were as insightful as your story. The common thread in both, it seems, is that folks should do some homework/ground work, be conservative with their numbers, work well with others, and above all just get started while continually learning and perfecting the processes as one progresses.

You're a good reminder of what Les Brown says, "you don't have to be great to get started, but you do have to get started to be great."

Best of luck!

Congratulations James! This is awesome! We are beginning our journey. We just finished setting up an operating agreement as we decided to set up 2 partnership businesses; one for fixing and flipping, and one for BRRRRing. We our utilizing money from the sale of our home and also some stocks we cashed in as well as a self-directed IRA. I do have some questions for you though.

Did you retain a real estate attorney in Alabama to assist you with contracts and legal aspects?

Did you retain a local realtor and contractors and how hard was that process?

Are you using a property manager to manage your rentals?

Again, excellent job and congratulations!  Reading your post just motivated us even more!

Looking forward to hearing your responses!

Have an excellent week!

Health, Happiness & Blessings!

Jami

Originally posted by @Chris Battaglia :

Congratulations! How much did the refinance cost you and how much did your mortgage payment go up by? I feel like this part of the BRRRR strategy is not often talked about and curious to hear how it impacted your monthly cash flow.

I did a ReFi and got a $53K HELOC a few months ago. It was around 5k to do the Refi...they just tacked it into the mortgage payment so I didn't really feel it.

Originally posted by @James Gates :
Originally posted by @Terri O'Brien:

@James Gates - what a great journey and thank you for sharing that. You are an inspiration to all of us getting started. I own a house in Denver, Colorado and just took out a HELOC of $55k but cannot buy any rental properties here...so I am concentrating on an area I grew up in on the East Coast where my family still lives. Can I ask you - how did you find your partners?

 Hey Terri,

Awesome job on the HELOC, it's a great strategy for "transferring" passive equity from one property to active equity in another.

I found my partners through a variety of ways. My primary business partner was an old co-worker of mine who is extremely like-minded when it comes to goals, attitude, and motivation.

Another partner was found on BP! I did a search for members in my area, asked him to coffee, and it blossomed into a partnership on two properties.

Another partner was simply a mutual friend who heard and saw what I was doing with Real Estate, asked for a sit down meeting, and when I showed him the numbers jumped right in!

 My question is...When partnering with people that you just met, what are some qualities that you look for other than motivation and like-mindedness. Would you recommend partners that live out of town? I am looking for partners also.

That’s amazing and thank you for sharing. So great to read about people doing long distance investing. I’m just getting started and in that first phase where you were with analysis paralysis and gobbling up as much info as possible. I live in Los Angeles and definitely am looking for out-of-state investing. I had some questions if you can share :

1. How did you crunch the numbers to make sure it’s a good deal

2. Is there a good rule of thumb to account for all the expenses like fees and vacancy?

3. How did you find a good rehab team out of state?

Thanks again for sharing! Hope to be where you are soon!

-Jolyn 

@James Gates

Congrats from 1 Californian to another! I enjoyed your story and the journey. I live in Westwood near UCLA and too took the leap a few years ago and own 3 out of state rentals in Northern OH. I hope to move to multifamily next as well.

Good luck in all your endeavors!

Michael McCoy

@James Gates such a awesome story thanks for sharing it's a great inspiration for me as I am undecided on purchasing my own home or start off with BRRRR method first, what would you recommend? I thought to take out HELOC you have to own your home for over two years? Can you elaborate more on how the cash out refinance works? Thanks again for sharing...

James,

How did U manage to do repairs and other things, living in another state far away??

I live in Houston Texas. Are disadvantageous is it to buy, fix and rent in another state far away? How do I manage that and still win?

Thanks.

Awesome story! Similar to our story...but we're still on our first rental property and I'm ready to make another purchase. If only we can get access to some of the equity in our primary home! What bank did you go to for the cash-out refinance?

@James Gates

Congrats on your success here and thank you for sharing your experience! I currently fix/flip and plan to move in this direction.

If you were to do it all over...what would you do differently and what do you wish you would have known before diving in?

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