Refinancing my first BRRRR in Texas

BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Refinancing my first BRRRR in Texas

Laura Casillas
Rental Property Investor · Austin, TX · Member since 2018 · 24 posts · 8 votes

Hello!!

Anyone doing BRRRR strategy in Texas? I would love to hear who are you using to refinance your deals. I'm working on my first one, is a small house ARV 95k. I have a couple options but they haven't come clear about interest rates and fees. Any information is very appreciated.

Thank you very much!!

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Andrew PostellPro Member
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
5y

@Laura Casillas thanks for posting! Always great to hear from a fellow Texan. Bigger Pockets does have some good state specific forums and Texas is their most active forum. Feel free to post there if you ever need some more "local" advice about things.

Texas is one of the most popular states to do BRRRR strategies in. We do tons. Properties are a bit hard to find right now....and Austin is going to be even HARDER to find. Generally speaking you will need several things to successfully complete a BRRRR here:

  1. ARV - being able to calculate the Value on a property is a bit harder here in Texas since the price of properties is private. So being able to do this on your own (meaning, without the wholesaler telling you the value) is really important.
  2. Repairs - You will likely need to know how to budget the repairs as well.  Getting a contractor can be extremely frustrating especially if you need to make an offer without even looking at the property.  How do you calculate repairs without a contractor?  You may need to lean on other local real estate investors in the beginning.  Or maybe even just focus on properties with a very light rehab?
  3. Lenders - You will need a lender on your BUY step and on your REFINANCE step.  And I would HIGHLY recommend to read this article I wrote for Bigger Pockets on how to find good lenders that you can find HERE. If they are good, they should be absolutely definitive on rate, terms, costs, etc. Trust me, many lenders will tell you they can do this...but it's very rare to find. When I first started BRRRR'ing my properties lenders would tell me "That's illegal"....it's not, then just didn't know anything about it.
  4. Finding Properties - and this is the absolute hardest step of anything right now.  So network like crazy and find some good resources.  It's going to be hard...but if it were easy then anyone could do it.

Hope this helps!

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  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    5y

    @Laura Casillas thanks for posting! Always great to hear from a fellow Texan. Bigger Pockets does have some good state specific forums and Texas is their most active forum. Feel free to post there if you ever need some more "local" advice about things.

    Texas is one of the most popular states to do BRRRR strategies in. We do tons. Properties are a bit hard to find right now....and Austin is going to be even HARDER to find. Generally speaking you will need several things to successfully complete a BRRRR here:

    1. ARV - being able to calculate the Value on a property is a bit harder here in Texas since the price of properties is private. So being able to do this on your own (meaning, without the wholesaler telling you the value) is really important.
    2. Repairs - You will likely need to know how to budget the repairs as well.  Getting a contractor can be extremely frustrating especially if you need to make an offer without even looking at the property.  How do you calculate repairs without a contractor?  You may need to lean on other local real estate investors in the beginning.  Or maybe even just focus on properties with a very light rehab?
    3. Lenders - You will need a lender on your BUY step and on your REFINANCE step.  And I would HIGHLY recommend to read this article I wrote for Bigger Pockets on how to find good lenders that you can find HERE. If they are good, they should be absolutely definitive on rate, terms, costs, etc. Trust me, many lenders will tell you they can do this...but it's very rare to find. When I first started BRRRR'ing my properties lenders would tell me "That's illegal"....it's not, then just didn't know anything about it.
    4. Finding Properties - and this is the absolute hardest step of anything right now.  So network like crazy and find some good resources.  It's going to be hard...but if it were easy then anyone could do it.

    Hope this helps!

    3Reply
  • Laura Casillas
    OP
    Rental Property Investor · Austin, TX · Member since 2018 · 24 posts · 8 votes
    5y

    Hey Andrew! Thank you very much for your recommendations, I will read the article that you mentioned and follow all the advise. I’m glad to hear that you have done this several times, hope I will follow you up. Where are you located?

    0Reply
  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    5y

    @Laura Casillas I am located in Fort Worth.

    1Reply
  • Alex Loera
    Realtor · San Antonio, TX · Member since 2021 · 9 posts · 5 votes
    5y

    @Andrew Postell

    Great article! Thanks for all of the information.

    2Reply
  • Kyle MccawBusiness Member
    Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
    5y

    @Laura Casillas many of my property management clients BRRRR their properties. Many of them use @Andrew Postell to handle the refinancing part. You won't find anyone more knowledgeable than him. 

    McCaw Property Management4.4902 Reviews
    WebsiteView Page
    2Reply
  • Laura Casillas
    OP
    Rental Property Investor · Austin, TX · Member since 2018 · 24 posts · 8 votes
    5y

    @Kyle Mccaw thank you very much!

    1Reply
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