NY/NJ Area Rehabbing - New to Forum and Real Estate Investing

[Mustafa Erden]

Hello Everyone, 

I am pretty new to the forum, but I have been reading, listening, watching all kinds of resources regarding real estate investing lately. I am contractor myself and trying to educate myself in BRRR method and hoping to try and get my first multifamily long term rental house as soon as I am confident that I can do this. Any tips, recommendations are appreciated. Anyone that needs help with rehabbing costs or ideas can reach out to me so we both can take advantage of our expertise. thank you all in advance, this is exciting for me.

[Kyle Tusing]

Would be thrilled to connect, the one aspect of investing that I still doubt my abilities on is predicting Rehab costs so I would appreciate assistance in being better at this. As far as BRRR is concerned I like to break it into two parts. First is the Flip, every BRRR has to be a good flip, but not every flip can be a BRRR. I like this because it gives you an early exit strategy if it's always a good flip then when you get to the rent part and rent comps are not as strong or demand is down then you can sell and still make a profit. The key data points you need to calculate a good BRRR are ARV (after-repair value, determined by comps) rehab costs, and post-rehab rent estimates. If the cost of the property and rehab costs equal 75 percent or less of the ARV it has good BRRR potential. This is because when you refinance you want to be able to get all of your invested money back, then the final part is will your refinanced loan payment be less than what you can get for rent. Even if after all expenses you only profit 100 a month your return can be infinite because you have 0$ still invested in the deal. Hopefully this makes sense but I would be happy to connect and try and pass along any knowledge or resources I know/have that could be useful.

[Mustafa Erden]

This couldn’t be explained more simple and clear way!  Your response summarizes this method very well, truly appreciate your effort ! Have a follow up question then :) What would be the pros and cons of taking advantage of first time home buyer option ? Considering the fact that I live in North Jersey and work both NYC/NJ.

If there’s any way I could help with rehab costs, please ask. 

[Vanessa Ivonne Hernandez]

I would love to connect, specifically because I'm part of an investment group and we're always looking for new contractors to add to our rolodex.