All Forum Posts by: Allen McGlashing

@Amber Hagen

HELOCs are a great way to fund deals at a low interest rate to borrow. I currently have a HELOC out on my home to fund my real estate investments. I would take out as much money you can and buy cash-flowing assets that will pay the HELOC off and put money into your pocket.

What I'm doing is I took a HELOC out with a 5yr draw period where it's interest only payments and a 15 yr repayment plan. My plan is to implement the BRRRR method on a couple properties in that 5 years. Once the draw period is over I will have paid the HELOC off and will be trying to open another one.

Feel free to message me if you have any question. GOOD-LUCK

@Andy Collins

I would price out how much it would cost (actual written quote from a contractor) and ask for a closing credit. I wouldn’t have the seller fix it because you don’t know they could hire the cheapest guy to do the job just for the house to close. Once you send the offer in see what they say, if they counter your offer you should know if it’s worth killing the deal over it or will the numbers still work.

GOOD-LUCK 

@Jigar Kadakia

What are your plans? Would the numbers make sense for an Air BnB are there enough amenities around? You should have an idea what you can get for rent in that area will it pay for that BIG mortgage? It’s hard to give you advice with such little information and without your plan. Looks like you have 8 months to figure out a plan.

Hey everyone,

I just seen this posted on one forum, but after hours of searching I couldn’t find it again so I figured just start another one.

My question is on the BRRRR calculator when running the numbers using hard money loans that fund 100% rehab cost should I just factor the rehab cost into the purchase price because the rehab money isn't coming out of pocket. I have found a HML that funds 80% of the purchase price and 100% rehab. So money out of pocket would be only 20% of the Purchase price. I know there are plenty of people that are way more experienced and know this answer. 
Thank you, can’t wait to hear your responses.

My initial numbers before I run them more calculated have to meet the 70% rule which is purchase price+ Rehab shouldn't exceed 70% of the ARV for my rule of thumb in this case your ARV is $160k. Purchase price + rehab would have to = $112k for it to be a good BRRRR.

I think for your all in costs to be $155k and the ARV To be $160k I guarantee there will be money left in this deal. When you refinance what is your plan because the best cash-out I've seen was 80% LTV. Which would leave you with $27k still in the deal. SO NO THIS WOULDNT BE A GOOD BRRRR DEAL.

@Kerry Pangan

You definitely came to the right place to ask questions and thankfully you did. The perception of if the rent of a property covers the mortgage then your making cash flow. There are so many more factors that add on your expense sheet. Check out the BP calculators as they shed some light on what expenses you will need to account for. Try to get as much info before jumping into a property. There are rules that you can look for before actually running the number like the 1% rule and the 50% rule. 

@Michael Swan

I am new to investing in the Cleveland area and have put out multiple offers while doing as much research as possible. I would love to connect and hear some of your experiences in this market, since you have had so much success in it.

@James Wise

How is the appreciation in the Cleveland market? I haven’t seen a lot of growth when I research property. I follow your grading Cleveland guide heavily. I was also advised that if I was looking for appreciation Cleveland probably isn’t that market, but cashflow is good. 

@Bernardino Graziano

I’ve been digging heavily into the Cleveland market. I have seen tons of homes with a current selling price that is lower than the previous sold price. Check the previous buy/sell history on some of the houses I’m sure you’ll find some.

One big concern in Cleveland would be the appreciation factor. You have homes that are selling for less then they were bought back 10,20,30 years ago. Cashflow might be OK, but appreciation in Cleveland doesn’t look promising.