BRRRR - First House Cash Offer Example

[Mandy Darlington]

Hi Everyone! I have not seen any examples of cash offers for house #1 using the BRRRR strategy. Would someone be able to check my math below? Also, do real estate markets in the U.S. exist with these numbers?

I have been aggressively saving money for the past few years and believe I will have enough cash to bi-pass a loan for the first house, if I can find a location that fits my approx. $155K all-in cash budget. I live in NYC and will be investing long-distance. Thank you!  

[Mohammed Rahman]

Hey @Mandy Darlington - congrats on saving up that much cash for your investing goals! 

Based on your excel screenshot, it seems that you're actually starting with your calculations first before landing on a market, property type, etc. I like that you seem to already know you want to do a flip or BRRRR.

My recommendation would be 2 fold: 

1. Now that you have your budget in mind, begin by searching for markets that you're comfortable with. You'll find yourself going down a rabbit hole here as you decide what criteria to pick to narrow down a market. 

2. Attend a local RE meetup with other investors so you can get out of your bubble for a bit. You'll be able to exchange ideas and might even come across someone that has done exactly what you're trying to do. 

P.S. Are you sure you want to use your own cash for your investments? Even if you're going to do a BRRRR, you should be able to find lenders to loan you on the house if it's habitable. There's a difference between someone investing $100k into a deal when it's 50%+ their net worth, vs. a wealthier investor where $100k probably wouldn't hurt them as much. Just food for thought.