Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Jose Barberi Again, I feel you are starting with the wrong metrics. I'd ask what market has the strategy I'm interested in. Perhaps the issue is finding a property with the 2% rule will be extremely hard to come by (or at least for a C+ / B class area with stable tenants). Then I'd ask, "how can I make the deal yield a high COC return?" Chasing numbers without fully understanding how they work and what kind of property and tenant you get is how many investors get burned.
Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Jose Barberi Do you have other reserves? $30K isn't that much to get started with BRRRRing, and you might pick up 1 property with that as a down payment.
Start back and ask yourself what your why is, what do you need to fund this why, how can you save up to fund the why, what strategies align with your why and time you have to invest.... those answers will guide you on what to look into next.
Rental Property Investor · San Jose, CA · Member since 2015 · 83 posts · 44 votes
6y
@Jose Barberi I'd completely agree with Whitney in that you need to align your strategy with your goals. From your posts, it sounds like BRRRR may be a good strategy so you can keep reusing your money. You can consider pairing your money with hard money to take down a property and refinance. Check with your lender on any seasoning periods!
Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Jose Barberi Again, I feel you are starting with the wrong metrics. I'd ask what market has the strategy I'm interested in. Perhaps the issue is finding a property with the 2% rule will be extremely hard to come by (or at least for a C+ / B class area with stable tenants). Then I'd ask, "how can I make the deal yield a high COC return?" Chasing numbers without fully understanding how they work and what kind of property and tenant you get is how many investors get burned.
Real Estate Agent · Miami, FL · Member since 2020 · 17 posts · 5 votes
6y
@Whitney Hutten those are great tips.
As @Carrick Young says I have selected the BRRRR strategy to be able to refinance and take that money to keep investing. My goal is to have enough cash flow from my rental properties to retire in 10 years (only work managing my 'x' number of units. Im currently 30. I dont want to become a millionaire or hold 1M in assets.
I understand it is really important to find the right market / city to invest on. How can I look for and define a market with c+ properties in a b area? I get also that good tenants are a huge difference for a landlord, I dont want to have tenanta not paying or leaving every year. I want them to pay and renew year after year. This is why I chose to invest in SFH of 3BR. As Brandon says on his book, these properties are the best for tenants that take care of the units and stay longer.
I would love to connect with you and help me through this new journey for me.
Currently working on getting the down $$$ from my RE commissions to start.
Rental Property Investor · Orlando, FL · Member since 2015 · 353 posts · 269 votes
6y
@Jose Barberi with $30k you could probably get a 20% down plus closing costs deal done in Brevard County (Melbourne, Cocoa, Titusville, Palm Bay). There’s some properties there in the $120k range that could get you 1% to 1.5%.
Only issue I see is you won’t have much in reserves once you close. And you would need to buy something with only cosmetic work needed to get rent ready if you only have $30k.
Real Estate Consultant · Seattle WA | Miami FL &|Ft. Lauderdale, FL · Member since 2019 · 95 posts · 29 votes
6y
@Jose Barberi I was looking into doing the same and unless you're going to househack $30k is unfortunately not enough to BRRR. I was speaking to another realtor who mentors RE investors on the BRRR and fix & flip methods and he says you really need minimum $60k-$70k cash for the BRRR method. I'm in your marketplace also! Let me send you a message so we can connect
Investor · New York City, NY · Member since 2013 · 1k+ posts · 269 votes
6y
Start with the fix and flip strategy. Bring in a capital partner so you can leverage your $30,000. Gather some capital and then go for the BRRR strategy.
Rental Property Investor · Orlando, FL · Member since 2017 · 207 posts · 125 votes
6y
@Jose Barberi Oddly enough that is the same amount I started with :) I use the cash for my 10% down and front money before getting reimbursed on the draw schedule. It absolutely can be done. (Not sure about down in Miami though). Happy to help in anyway I can.
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
6y
2% rule in Florida. Hahahaha
That's not going to happen in Miami unless it's a ROUGH neighborhood and nobody here should recommend that because BP is good community of like minded investors.
I love Florida (I'm a mid-westerner) but for about $15-20K extra cash you could BRRRR in my market. Probably net $100-200 per month, C-class.
Rental Property Investor · Orlando, FL · Member since 2017 · 207 posts · 125 votes
6y
@Jose Barberi. No that is not what I said. I said I started with $30K. Put 10% down and used the rest for up front rehab costs while waiting on draws. No where in there does it say a purchase price.
I do not use conventional financing because I have the properties in an LLC. I get in using private money, rehab & rent it, and then refi out into either better private money or local community banks.
I have to have cash flow in the deal or I won't do the deal. $300 a door is doable, but you are going to have to search hard for those leads and get really creative.
I agree with @Jaron Walling on the 2% rule. In most markets here it hard to get 1%.
Investor · San Antonio, TX · Member since 2020 · 14 posts · 4 votes
6y
Jose, have you looked into the possible use of hard money? In San Antonio, TX, we use hard money to fund our deals up to 70-75% of the value. With $30,000, you should easily be able to pick up 3-5 properties depending on the average after retail value of the market you're looking to purchase in. This is true in my city and state and I've never done a deal in FL so you'll have to research to see what you can discover in terms of creative financing.
Investor · San Antonio, TX · Member since 2020 · 14 posts · 4 votes
6y
@Jose Barberi don’t let the high interest rates of hard money scare you from talking to a few hard money lenders to learn more about these loans and how you can use them as leverage to buy more deals. Most Hard money lenders aren’t interested in long term loans so a 12-15% annual interest rate that you ideally want to be in for no more than 3-5 months can help fund your deals faster with less of your own money and there by having more liquid capital to fund more projects. Also with hml’s; most will prequalify you or your property to ensure it can be refinanced into a low interest, long term conventional loan once you’ve turned the property around and stabilized it with a renter. Sometimes you can even get money back on a refi if your all in costs are 70-75% arv. Again, don’t take my word for out but maybe consider setting up a phone call with a few reputable hard money lenders in your area.