All Forum Posts by: Bryan Richardson

Greetings BP community. I'm looking for a property management company that can work with SFH in Indianapolis and surrounding areas, possibly as far as Anderson. However, if they can just work Indianapolis, that would be good.

The scenario is as following, and not sure if it's possible: I'm looking at acquiring a few SFHs. The minimum is a 4 BR. Each room could be rented to an individual: Active Duty/Reserve/Guard, college students, young and single professionals, etc.

I spoke with a highly recommended property management firm, and they said they only rent per unit, not room. Can anyone suggest a property management firm in the area?

I heard the other day that there actually turning the Anderson mall into housing like this. It's been empty for yrs.

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Originally posted by @Chris Mason:

Originally posted by @Jason Hartman:

Hello all, I'm a somewhat seasoned buy and hold landlord/investor and understand (sometimes follow) the BRRRR strategy.
I'm currently an employee with a W2 which has of course been instrumental over the years in helping me obtain new financing and in refinancing. I'm close (within a few months) to being able to completely leave my W2, but am confused as to how those practicing the BRRRR strategy without a W2 are landing long term financing for the refinancing component of the process. I totally understand hard money, short term lending for flips, etc., but I'm particularly interested in being able to qualify to refinance into long term fixed rate loans if I don't have a consistent W2.
I have HELOCs on several properties which will allow me to continue buying, renovating, but then how do I get qualified to refinance after that? Given that HELOCs are adjustable, and that I want that money freed up again after I'm finished renovating, I don't want to rely on the HELOC as my long term financing.
Thanks in advance for any insight!

If your only job and source of income is "landlord," the DTI math works out to about 2.5x. It's not really called a "2.5x rule," it's just some math I did to figure out where it winds up. How it works out...

Once all consumer debt is eliminated, and your net monthly cashflow from rentals is 2.5x your personal housing expense, you can continue buying/refinancing cashflow positive rental properties and DTI will work out to be in the Fannie Mae allowable range.

Example:

- Investor's personal PITI is $2000 per month and they have no other consumer debt.

- 2.5x says they'd need $5000/mo of net monthly cashflow after each property's own mortgages and other expenses. That works out to be $5k/mo.

- DTI is just debt divided by income. $2000 / $5000 = 40%, totally in line with what Fannie wants.

- Provided the investor sticks to cashflow positive deals, DTI will continue to work.

This is non owner occupied investment property math. It's not as generous if getting a mortgage on a property you will live in.

In your case, doing the BRRRR thing, you will want to get the process going the day after your new tenant signs a lease and makes a security deposit.

That 2.5x might seem like a lot. You can treat it as either a goal to shoot for *or* you can start looking into commercial financing.

Great knowledge! I'm about to be there as well and had the same questions. I dont think I could've got a more clear answer.

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Congrats @Ryan Eder!

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Thanks guys

@Michael Thompson

Thank you. I have checked out the websites, and I think I'm going to push myself to go to one of these meetings.

@James Wise

Huge fan, I've been watching your YouTube for a while now. Keep it up ive learned alot from you.

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@Harvey Levin are you including utilities with your section 8 rents? If so does section 8 reimburse you for them?

I always have my tenants pay for utilities, section 8 or not.

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Hey guys,

So I've been following BP podcast and YouTube for a couple yrs now. For some reason never joined the forums. I have 7 units now, but have realized that I need to work on my networking to really grow my portfolio. I'm going to try and get out there and socialize (pretty introverted) and network. With that said......

Hey I'm new here from indy, any advice?

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@Keziah Doria

We used the credit cards for the whole purchase of the home and repairs, then got a mortgage on it after we fixed it up. Brrrr strategy. We done this a few times now.

Also if you haven't closed on the FHA loan for your house yet, you might have to wait. I'm sure in you loan contract it probably says you cant inquire any new loans or lines of credit.

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@Keziah Doria our first house we used credit cards with 0% balance transfer. They usually have a 12 or 18 month term with no interest. Once you own the home and its fixed up, cash out refinance and get the money back to pay off the cards.

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@Kalyn Williams

We debit are tenants account using Huntington bank. It's something like 50 bucks a month, but well worth it.

Also p.o. boxes are cheap, have them send a check or money order. I would never want time drive to all my houses.

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All Forum Posts by: Bryan Richardson

Bryan Richardson has started 15 posts and replied 183 times.

Post: Morris Invest/Clayton Morris Invest

Post: Property Management Question, Indianapolis Specific

Post: BRRRR - Qualifying for Refi w/o W2 Employment: Ideas?

Post: First Investment Property

Post: New here from indianapolis

Post: Section 8 in Indianapolis

Post: New here from indianapolis

Post: Walk me through my first investment

Post: Walk me through my first investment

Post: How do you collect your rent?