All Forum Posts by: Aaron Wyssmann

Exactly.  That's what @Brandon Turner calls the BRRR strategy and it is a good one.

@Brian Gibbons That's some great information.  Any way you'd be willing to share that the company you use in Dallas, that would be a great resource.

@Don Jackson You ask a great question. I think it would depend on a couple factors: 1) Does the properties you are considering buying need to be rehabbed? If so, then I think it is best to buy with private money or with your HELOC so that you can get the property's value as high as possible before putting it on permanent financing. 2) If no rehab needed then I would get it locked in at a great rate for however long you are comfortable. I personally like 20 years because they will be paid off when I'm looking to retire.

That's one way to look at it. 

@Roosevelt Archie Well welcome to BP where you can find the answers to almost anything you might be wanting to know about RE.  Sounds like you have some great folks around you to help guide which is hugely important.  Great success to you.

@Michael Hamby

Welcome to  BP.  You'll find tons of great information out here on literally every topic imaginable.  I wish you much success as you get started and if I can help in anyway, let me know.

Aaron

Dan,

I pulled this up and then found out we're in the same town, pleasure meeting you.  I only see a couple things that I would point out but overall I'd say for our area this is a pretty good deal.  I've done some of Rent-to-Own in the past and I can tell you that the likelihood of a tenant actually being able to get lending in 3 years is pretty slim.  I know several folks in town that do this sort of thing and it is a fantastic concept and when it does work it is fantastic for everyone involved.  If that is your plan I would recommend finding a local lender who would be willing to work with your tenants on really figuring out how or if they will be able to get them a loan in 3 years.

Secondly, in our area $900/month for a 3/2 1400 sq ft is pretty high.  There are always people out there who will have the cash but I'm not thinking you could realistically get that much.  If it is in maybe Nixa, Ozark, Republic or south Springfield you might have a shot but still I'm not too sure.  Right now we do lots of rentals so if you would like to send me a general area I could give you a better number on what it would rent for. 

Great find.

Corey,

Great to have you out here.  You ever come across anything in the Springfield, MO area hit me up.  I wish you great success.  Look forward to learning from you.

There are a couple ones that I know of but I'm sure there are more.  It kind of depends on how many properties you manage because they each have different pay structures.  The one we use in our office is Appfolio and it is great.  Another one that is I believe is also pretty good is Buildium.

Can you explain the $3500 a  little bit more?  Are you saying that you paying that in expenses each month on all four units?

Great discussion but I think there is one thing you are leaving out and that is the Time Value of Money.  Interest rates now are still very low and if you have the ability to REFI and lock the use of that money in at 4.375% for 30 years…wow that's a great use for that money.  

I do agree with the arguments for using a HELOC and I was just debating this very same thing for myself about 6 months ago. I finally decided on the REFI and am glad I did.

Would love to know what you decide.