Newbie from Smithville, MO (Kansas City)
Hi! My name is Tara Jackson, I am very green in the REI world. I, like many people that I have talked to, got interested after reading Rich Dad, Poor Dad. I have been listening to BP podcasts, tuning into the webinars, and following the forms silently. I initially found bigger pockets through a google search on real estate investment and I recently became a pro member so I would have access to more of the features on the site. While these features will surely be helpful I have come to the realization that networking, live connections, and experience will be much more helpful! (Thank you @Chris Hopper for your post a couple of days ago re: beating dead horses, it really pushed me to make this post!)
I have been a Nurse Practitioner for the past 7 years and was a RN for many years prior to that. I love what I do, but looking to make some “passive” income and to start working towards financial freedom. I hope to reach financial independence in 10 years.
I am interested in the BRRRR method. I am halfway through David Greene's book, and I highly recommend it to anyone who has been considering purchasing it. I am open to partnering with another newbie interested in BRRRR or partnering with someone experienced with BRRRR. I would prefer to stay local, in the Kansas City, MO area, for my first several deals. I have already learned so much from the BP community. Any advice, suggestions, connections are appreciated!
Most Popular Reply
That's correct, you make money when you add value by doing a rehab. If you don't force appreciation through a rehab, you can still do a cash-out refinance but most banks/firms will only do this up to a 70% - 80% LTV minus your current loan obligations and/or existing liens on the property. If you only put down 20% when you purchase a property, without doing a rehab, it wouldn't be worth it to do a cash-out refinance because you wouldn't have enough equity to pull out. I have two investor clients that plan to do a cash-out refinance or simply a refinance in a few years, then sell all properties in 5-7 years (optimal IRR) to roll into a 1031 exchange. They will then purchase a larger multi-family property instead of having multiple single-family properties (Economies of Scale). I hope this helps!