All Forum Posts by: Alex Saleeby

David Soest remember that the tax code is written to heavily favor real estate ownership. Profits from short-term flips will be taxed similar to ordinary income, so you might be giving a good size chunk of the profits to Uncle Sam each year. You might want to consult with your CPA on this question as well. Couple more options to consider: (1) long-term flip I.e. Holding the property for 12+ months, could result in much lower tax burden, or (2) holding your investments and using the built-in equity to finance additional deals. At the end of the day, as others have suggested, some combination of strategies would work best

The idea is to buy a property such that purchase + rehab + holding costs are less than 70-80% of ARV so when you do refi after the required seasoning, you meet the lender's equity requirement without having your own money m remain in the deal. Of course, you need to check the numbers need to be sure that you can also get positive cash flow after the refi.

Carter & Company on Lucas Drive in Beaumont.

Impressive! Thanks for sharing

Outstanding! Congratulations.

Have you explored seller financing as an option?

Outstanding!! Congrats on the big milestone. Not surprising, thanks to the high standards and quality content produced by BP staff and community members. Thank you Joshua Dorkin for your leadership.

Congrats on your first BRRRR. Seems like a nice property.

@Rachel Trimble

$190k X 75% = $142,500 potential cash-out and new loan amount, not $80k

$142.5k - $110k (purchase + rehab) = $32.5k excess cash out remaining after recovering the original investment of $110k. 

In the original post you mentioned a $30k cash purchase + $80 rehab. To recover your investment you would need get the full $110k out using refinancing. Yes, I am certain that banks would let mind loaning at LTV's below the max. Makes the loan less risky.

$110k/$190k=58% LTV.

@Kristy Farmer I'm focusing investments in southeast Texas - Beaumont, Nederland, Port Neches & Groves.