Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 5 years ago on . Most recent reply

User Stats

4
Posts
0
Votes
Brian Baller
0
Votes |
4
Posts

About to close on a deal. Please help me choose btw 2 properties!

Brian Baller
Posted

Hello, my name is Brian and I am new here and this is my first post! Exciting stuff on my end as I am about to close on my first BRRR rental property. A new listing just popped up that has me scratching my head. Hoping you guys can help me out.

Property 1) Purchase Price = $540,000, ARV = $740,000, $0 left in the deal so Infinite Return, Cash Flow = $1000/month, 1st year Principle Paydown = $13,800. Total Return = $25,800. (This is the property I am about to buy).

Property 2) Purchase Price = $600,000, ARV = $720,000, $60,000 left in the deal, Cash Flow = $1750/month, 1st year principle paydown = $14,420, Total Return = $35,420

Situation: I have about $XXX,000 cash and a good paying full time job. my goal is to accumulate more real rental properties and do it as soon as possible (like many of you guys on here).

Does leaving $60k cash in the deal to get better cashflow/return the better way to go? It's roughly an extra net return of $10k per year going with the 2nd property. Over 30years, that's $300k difference all said and done. OR do I go with the 1st property and pull out all of my money? In my situation is liquid cash more valuable than extra cash flow? 

I am not needing the extra cash flow for my day to day needs, I just want to set myself up so that it is easier to borrow money moving forward.

Any feedback would be greatly appreciated.

Thanks a bunch! 

Loading replies...