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BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated over 4 years ago on . Most recent reply

User Stats

57
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9
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Daniel Ordonez
  • San Jose, CA
9
Votes |
57
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BRRRR How do I scale?

Daniel Ordonez
  • San Jose, CA
Posted

I just recently bought my first income property out of Stockton (triplex) and have been renting it out. I did an FHA with the 3.5% down. I am looking to start scaling but don't have much money to invest with the next property. I am also looking to buy a big home for my family next year as well. I wanted to save for a down payment here in the bay area as you know everything is super expensive. The next investment I am looking to invest in Colorado Springs, San Antonio, and Arlington. I have them narrowed down to doing out of state because its cheaper and possibly another in Sacramento area.

I guess my question is what is my best option as far trying to put as little of my money into my next investment? 

I make around 100k a year and do have a little saved up but not enough for a bay area home yet. Next year I will get a raise and be able to account for renting out all 3 of my units.

Is a HML my best option? and if so what rates should i be looking at if I was to get a HML? Im very new to BRRRR so Im trying to do my due diligence and cover all my basis. I am trying to scale because I work in construction and don't want to work in it forever.

Thanks in advanced.

  • Daniel Ordonez
  • Most Popular Reply

    User Stats

    45
    Posts
    60
    Votes
    James Kats
    • Real Estate Agent
    • Sioux Falls, SD
    60
    Votes |
    45
    Posts
    James Kats
    • Real Estate Agent
    • Sioux Falls, SD
    Replied

    I was making 35K a year when I bought my first rental in Sioux Falls.  That was about 5 years ago.  Since then I have bought about $2 million dollars in real estate and still make about 40K per year, with a family of 6 to care for.  I did this with OPM.  I have either syndicated each deal, or borrowed the down payment resources from friends and family and payed them back over the next several years.  First few years are tight on cash flow, but it starts adding up after that.  I pay between 5% and 7% for the private loans.

  • James Kats
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