I'm working on gathering all the indignation and knowledge I need to use the BRRRR Strategy on my first rental purchase and wanted to see where you all are finding success when refinancing.
-What mortgage term are you using for the refi?
-What APR are you encountering on a non-owner occupied property?
-How long are you waiting after purchase to refi?
-What are the biggest obstacles you have faced?
Looking forward to reading the responses I get!
@Rudy Figueroa What are the details on the first rental? When did you buy it?
No property yet. I'm trying to get insight in all the details to try to make sure I don't stumble too hard on my first property. I'm currently looking at pre-forclosures and REO properties in my area as the current market values of 3/1 and 3/2 SFRs (most popular rentals in Hollister) would lead to significant negative cash flow. Average price 3/2 falls between $340k to $450k but rents are only $1800 to $2400 per month. Any advice you might have would be greatly appreciated.
Those #'s do not look attractive unless you are independently wealthy. It doesn't make financial sense to float debt on those type of properties. When I was in my peak of accumulation mode I was buying properties that would atleast meet the 1% rule. Around Fresno and Tulare County you can still find many properties that cash flow better than Hollister.
Any reading material/advice on managing rentals/landlording from afar? Definitely a route I wouldn't mind going if the cash flow justifies it. Thanks!
There is a lot of good reading material about managing properties, people and debt... BP being on of the best places. My best advice is to surround yourself with good people. People that you click with, can trust and want you to be successful. I like being on the ground talking to people everyday. Face to face interaction develops a person in a different way than chatting online on BP.
I never turn my nose up when I see lower income people or activity. You really never know who you might meet. The other day I was dealing with a property I own in Fresno. I was onsite in my truck calling a few people for maint. repairs, I saw a guy organizing the dumpster, thought he looked suspicious, got out and said hey whats going on. Come to find out he owns about 60+ apartments in the area. We built a rapport and I'm plan to ping him regularly for information.