All Forum Posts by: Braden Burton

@Brian Garrett  for sure man. Total income-debt service is 7200. I self manage the property with my brothers and typically account for around 3000 in total expenses, capex etc. Current tenant is on long term lease so no vacancy to consider necessarily. I have had the place vacant for 2 weeks total over the last 8 years.  So gross monthly 2300, payment, interest, taxes, insurance are 1700.  so 600 a month for all other expenses. I typically account for 300 a month of expenses which is pretty high and mostly capex or an appliance repair here and there..  regardless at this point the property is still having loan paid down and has zero money invested into it.

Thanks for your comment!

Hey Lucas, I'm over in Crested Butte but have been looking in Delta/Olathe/Montrose.  Lets connect and see if we can't help each other make some money on the western slope.

I wanted to share my first real estate deal with the bigger pockets community. I purchased this property in 2009 for 238500 at 23 years old.. I took a check for about 17k to closing. Obama gave me 8k tax credit in 09 for buying the house. I put roughly 35k into the property (including the 8k from obama) from 09-11. 1 bathroom remodel and 1 full bath install in the basement, 2 kitchens original kitchen painted the cabinets, new appliances and counters, beadboard backsplash, basement kitchen used cabinets painted, paint, landscaping, some trim and new floors in one of the bedrooms, ripped out some carpet while living there with roommates. I guess it was a bit of a house hack as well. The goal was to purchase this property then get it fully rented and move to Colorado for a winter. I made it happen! It was a lot of sweat equity but after learning about the BRRR method I was able to successful get all my money out of the house!

My mortgage payment was 1550-1600 in 09 and i had a few roommates paying 500, 500, and 600. The basement was setup as somewhat of a studio apartment. I’ve had to kick 1 tenant out, had one tenant leave water all over the basement floor, had to replace the line for the septic system and spent about 8k on the well. Overall the property has been easy to manage and typically cash flows about 4500 a year.

Just closed a week or so ago on a successful cash out refinance. After 8 years of owning the property the loan balance was 202k. I got the house appraised with a target value of 350k. The appraisal came in at 355k and I maxed out the loan to 75% LTV and was able to get 60k out of the property!! So now I have zero money invested on a property that pays me $600 a month, thats a pretty good ROI! Rent 2300 a month for the entire house and new mortgage payment 1700. I just got a second property under contract and will be using the 60k to rehab this distressed property and repeat but hopefully on a faster timeline of BRRR.

Now here is the only other thing I am considering with this property. I currently have 90k in Equity!! So my ROE- return on equity, is actually pretty low. If i have zero expenses its a 8% return on equity. My goal is to see if the current tenant wants to purchase the house via owner financing for a few years, make some interest on the balance and then get my remaining 100k out of this property to invest in a bigger deal.

Please reach out if you have any questions or if I can help in anyway! My overall return on this property has been amazing and is the key to building wealth! To have assets that have zero money invested in them that pay you every month, build in equity, build in appreciation is the triple threat that real estate investing can offer! My goal is 40 units by 34 years old and then start with some syndication.

The best time to buy real estate was 20 years ago, the second best time is now!  Investing is a long term game..  I don't think its smart to purchase your own home as the costs to maintain a home you live in are expensive. But I am still searching for deals and ways to acquire more property that will create positive cash flow. I am back and forth whether I think we will see a correction or continue to see growth. Everything is growing exponentially right now. If people can't afford thier house they will have to live somewhere and likely will need to rent! I don't think rental prices will fluctuate that much.

Guys, I am really trying to attend this meet up and traveling from Crested Butte to do it. Let me know if anyone can't make it I would love to grab your ticket!!  

why not multi family? my first deal was a single family but i had every intention and did create 2 units out of it..  if 1 unit is empty i still have income.  Although if the location is in high demand and you think vacancy rate will be low single family can still be great investment

I bought a fha sfh in 09, refi in 2013.. so my Pmi should come off middle of next year. I repaired property and believed value went up so I decided to do conventional refi for a few reasons. Purchased property for 238k. 3.5% down. Current loan balance 202k, got appraised for 355k, so 70% ltv is 245k. I'm going to cashout refi to 245k so get 43k cashout (38k after refi fees). Because I pay pmi now my payment will stay the same. Going from 3.25 rate to 4.5 rate which sucks but I'm getting all my money out of the property, will have 38k for another property, and still have $700 monthly cash flow as well as 110k in equity and a safe ltv. Get the pmi off by getting appraisal done if you think the value is there.. if so farm your money invested out of the property and fund another deal. LEVERAGE- BRRRR