All Forum Posts by: Allen Ramirez

Hello BP Team!

I have a question about the data that the Rental Property Calculator outputs. I am looking for the overall ROI that includes cash flow, appreciation, loan paydown, etc. I understand that the COC ROI only includes the cash flow divided by the amount inputted. But is there an area where it shows the ROI I am mentioning above? I see an Annualized Total Return percentage but I don't believe that's it. Any help is greatly appreciated! 

@Scott Scoville Awesome! Thanks for the info! Yeah I'll definitely hit you up next time I'm in Sacramento. I'm working on some local projects right now but after they go through I should have some funds to start looking into multi families. So multi family plus keeping it in Cali sounds ideal :)

Quote from @Scott Scoville:

Quote from @Allen Ramirez:

Hello Awesome BiggerPocket peeps! I live in San Diego and am trying to find local areas where I can BRRRR. I'm familiar with the Crestline/Lake Arrowhead area where I'm trying to find run down places to add value to but I'm still running into numbers that aren't the best. I'm wondering if buying out of state is the way to go. Any advice, guidance, or next steps would be helpful! I can also help if anyone needs a Structural Engineer for any remodeling or renovations! I'm licensed in 48 states so I can help most states 👍 thanks! Allen Ramirez

Hey @Allen Ramirez, we're "BRRR'ing" up in Sacramento. Focused mostly on good locations, with plenty of value add potential. Add square footage or beds/baths. Getting deals on the MLS and off market. Location is key though.

Awesome! Thanks for the feedback! How are you finding the cash flow there? And/or the appreciation rate? I have a brother-in-law in Sacramento so maybe the next time I am there I can hit you up. Always looking to get ideas in different areas. :)

Hi Jimmy! Thanks for the invaluable feedback! Again, I've been hearing good things about Ohio. And coming from a real estate agent that's actually there, makes it that much more credible :) 

Do you invest as well in Ohio? If so, do you have a team together? (i.e., GC, PM, etc?)

At one point, once I finalize an area, which is looking more and more like a city in Ohio, I'd like to fly out there and meet with possible future team members. It be great to have a guide if you were willing or had time. It wouldn't be anytime soon but I think likely sometime within the next few months, maybe end of summerish. 

If not, no worries! thanks for all the feedback anyways! 

Quote from @Kerlous Tadres:

Hey Allen,

BRRRRing in So Cal is tough high prices, low cash flow, and tighter margins, making it hard to pull off. You can find deals, but they’re rare.

If you're open to out-of-state investing, Ohio is a prime BRRRR market with affordable properties ($50K-$150K), strong rent-to-price ratios, and solid rental demand. Cities like Columbus, Cincinnati, and Cleveland offer great opportunities to buy distressed properties, add value, and refinance with equity left in the deal. Plus, Ohio is landlord-friendly, making management smoother.

Next steps: pick a market, build a local team, and start analyzing deals.

 Great info Kerlous, thank you! Yes, I think I will keep Cali open for the future, but considering my current available funds, start to build a team in another state. I will for sure consider Ohio as I have been hearing the same things you mentioned. Thanks again!

Quote from @Jeremy Taggart:

@Allen Ramirez I'd say it depends on your cash position and the numbers of your local market. If you can't find a market with very good rent/price ratios near you then you will need a lot more money in order to refinance out of them since you won't be able to rely on the property itself to cover the debt needed to get your money back out. Cheaper areas with better rent/price ratios could help with this but then you have the downside of it not being in your backyard which comes with additional risk/expenses. I tend to prefer multi family since the rent/price ratios are better if you can find any of those nearby to you. Pros and cons to each. Depends on your timeline too just might take longer to achieve your cash flow goals if you are doing it in a more expensive market. 

Thank you Jeremy! Yes totally agree. And that's what I am finding out too. I haven't looked too into multi family yet because I think it's out of reach for me right now at my beginning investing career but I will keep an eye out for sure. Thanks for the insites! Much appreciated !

Quote from @Bonnie Low:

@Allen Ramirez you're asking great questions and you've gotten some spot-on advice from seasoned investors like @Dan H. who know your market very well. One particularly salient point he makes is "I want a market where my value add adds the most value." This is absolutely critical with a BRRRR and I say that from the perspective of a lender and an investor experienced with this model. It's true that it was MUCH easier to pull off the ultimate BRRRR strategy even 2-3 years ago. But between bloated asking prices, the increase of rehab costs and higher interest rates, it's much harder to do. That does not mean it's impossible, just harder. I've had to shift my thinking in 2 ways. 1) the "infinite return" whereby you get all your money back, plus cash flow, is less likely. But at the end of the day, I'm ok with that and here's why. I don't mind leaving 10-15% in a deal. I look at it like paying 10-15% down on an investment property and I can stomach that. 2) I have to force significant value into the property to ensure I get as much of my cash back as possible. It might seem this is easier to do in a cheap market, but as Dan points out, that's not always the case. You need to buy it right (almost never the listing price), you need to be confident in your rehab pricing and ARV, and you need to use the right financing tool that won't eat up your profits. These are the things that will safeguard your investment and allow your strategy to work for you.

Don't overlook the importance of having the right financing product to achieve your goals. When you build out your team, make sure you've got a lender on your roster. I say that both as a lender and an experienced investor. It's never too soon to create a relationship with a lender so that when the time comes to buy, you know you have a trusted partner in your lender. If you run across a lender who only wants to talk to you when you "have a deal", keep looking. A good lender is worth their weight in gold, just like a good Realtor and a good GC.

Hello Rodrigo! Thank you for the great feedback! Yes, I've been hearing the same as well. I will keep this in mind. I am still in the position where I don't have start up capital yet but am working on that for the time being. But will consider this as well, keeping Cali strategy different than out of state. Good to know there are multiple options and strategies though! Appreciate the feedback! 

Hmm all good points!

I am using the BP BRRRR calculator, and I am not exactly sure how I can adjust the inputs in order to receive all of the cash out refinance amount? If you know of a way, I am all ears!

But thank you for the general overall review! What I am trying to do is to establish a "base" calculation that I KNOW is accurate. Then I can go into each variable and see how I can tweak or refine them to get better, more promising results. 

I do truly appreciate your help so thank you!

Hi William! 

Thanks so much for taking the time to review this and provide feedback! I will try to answer each so it's clear :)

This is a single family residence, 3 bed/2bath. 

The taxes value was taken from the listing information. I will surely look into this more if I feel the deal is able to work with but this is pretty reasonable for the area.

The insurance is based on another property near by that my mother-in-law owns. So that is pretty accurate.

Growth assumption of 3% was taken from a few webinars I have done. 

My main question are the initial load inputs. For example, the hard money loan inputs, initial down payment, interest rates, etc. I will have a hard money lender give me exact numbers but I am just curious if I am inputting them correctly, based on how they should be put in. 

Thanks again for your help!

Hello Awesome BP people! I am hoping someone can run a quick check to see if I am analyzing this property correctly and/or if my assumptions/inputs are correct? 

I understand there are a lot of variables to consider. My main question is regarding the initial loan inputs. I want to take out a hard money loan for the initial purchase. I am assuming some conservative factors like 12% interest, 2 points, and somewhat high closing/other costs.

The rehab should be minimal with $50,000 budget and 3 months until finished and being able to rent.

Any help is much appreciated! 

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