Realtor · Forest Lake, MN · Member since 2021 · 41 posts · 23 votes
Hello everyone! First of all I have to say I am beyond excited to be a part of the whole BiggerPockets.com family. I found out about this site after reading David Greene's "Long Distance Real Estate Investing". Today I pulled the trigger and created an account. My wife and I have been doing some heavy research as of lately in terms of alternate sources of income and investment strategies and have come to an agreement that our ultimate goal is to replace our active income with passive income. Who wants to work forever anyways? I am sure we all share a few common goals centered around this. I am always looking to connect with anyone willing to share some knowledge and previous experiences, or just plan chat about real estate investing! We are located in Minnesota, but are also looking to invest out of state in favorable market condition areas.
We are about four years ahead of you and it's been great for our family. Feel free to reach out as questions come up.
Todd,
Thank you reaching out! I will keep that in mind as we travel down this exciting path. I noticed on your profile that you are interested in and currently utilizing the BRRRR method. Has this been overall a great route to go? My wife and I are reading and researching multiple different methods of investing. Lots of pros and cons with each, but the BRRRR method really stands out.
Thank you for reaching out David. We will keep that in mind! How has your overall experience with real estate been? I noticed you have been doing what you do for quite some time.
Rental Property Investor · Minneapolis, MN · Member since 2019 · 22 posts · 15 votes
5y
Welcome Anthony! I have been a member here for a couple years now, but am probably in a similar stage in my REI with my wife. We are nearing completion of a DIY live-in flip in Eden Prairie Minnesota and are now pursuing options on where to go from here. We are getting quotes for HELOC and Cash out Refinance with the hopes of holding the property and take advantage of the appreciation we are seeing in the Twin Cities Metro. I am by no means an expert, but I may be able to provide some insight into my DIY renovation experience, refinancing, SFR rental in the west metro, and I am happy to share details about our current situation and how we end up exiting/holding the property. DM me and I'd be happy to talk more.
Indianapolis · Member since 2019 · 288 posts · 179 votes
5y
Welcome to the investing community!! BP is an excellent option to hear others experiences and to glean information from others. You do have other options to connect and get resources by joining your local investor groups on Facebook or else in local chapters.
It has its up and downs. all in all its going well enough for me.
You are asking about the brrr method. You might want to take a look at this relatively recent discussion thread for some counter arguments to what one might think of as the "sale pitch:"
We are about four years ahead of you and it's been great for our family. Feel free to reach out as questions come up.
Todd,
Thank you reaching out! I will keep that in mind as we travel down this exciting path. I noticed on your profile that you are interested in and currently utilizing the BRRRR method. Has this been overall a great route to go? My wife and I are reading and researching multiple different methods of investing. Lots of pros and cons with each, but the BRRRR method really stands out.
We started out buying near turnkey for the first two properties and looked at the trajectory we were on with those and figured out it wasn't going to really speed our path to financial freedom by the margin we wanted it to. From there we decided we had to force equity in order to be more efficient with our funds. After that, it's a pretty short step to BRRRR.
The challenge with starting with BRRRR is you have to be competent in all areas of the strategy, versus a traditional turnkey purchase you really only need to be able to analyze a deal. I don't know that I'd recommend going into BRRRR as a first deal, especially if you weren't going in cash. Typically your margins will be small and you are relying on market rents increasing to actually build the cash flow that will result in an impact to your financial situation. You need to reinvest in your portfolio with all proceeds and probably inject additional capital as available (plus having reserves or credit you can tap if a big cap ex comes up). BRRRR is the most efficient way to start/grow a small portfolio, but impatience expressed financially is debt, so you can't be shy about racking up mortgages.
Once you get going with BRRRR you will get to a point fairly rapidly where your personal income streams that exist now could not cover your debt service payments for your investment properties and how far past that point you are willing to go will determine your growth potential. When my wife and I had that conversation, we decided we could work in our current jobs and live in our current home happily for decades if it all went away so we decided we were willing to push all in and not even regard where that point was. Also, don't invest somewhere you aren't willing to live, because eventually if you hit a point where you don't need a w2 anymore, will you really want to live in a high cost of living area? If not, the most logical place to live is within striking distance of your portfolio.
As you dig in over time figuring out what's right for you, feel free to reach out.
Investor · West Palm Beach FL. · Member since 2019 · 14 posts · 7 votes
5y
Hello Anthony,
My girlfriend and I just closed on our first property and its a duplex. We are so excited haha I actually just made this account as well. We're located in South Florida and I got a deal on a duplex for 314k, Its sooo great though because we have a tenant that pays 1450 every month to me, in my pocket haha. 314k seems rather high compared to most other markets, if you could see the property. The market where I live makes it so difficult to get a deal. Have you begun looking at the market around you?
Hello everyone! First of all I have to say I am beyond excited to be a part of the whole BiggerPockets.com family. I found out about this site after reading David Greene's "Long Distance Real Estate Investing". Today I pulled the trigger and created an account. My wife and I have been doing some heavy research as of lately in terms of alternate sources of income and investment strategies and have come to an agreement that our ultimate goal is to replace our active income with passive income. Who wants to work forever anyways? I am sure we all share a few common goals centered around this. I am always looking to connect with anyone willing to share some knowledge and previous experiences, or just plan chat about real estate investing! We are located in Minnesota, but are also looking to invest out of state in favorable market condition areas.