All Forum Posts by: Chris Kendrick
Chris Kendrick has started 32 posts and replied 191 times.
Post: brrrr, Renting it out
- Posts 191
- Votes 21
Quote from @Vadim F.:
@Chris Kendrick what markets are you looking into? Are you looking local to where you are located or going OOS? OOS is a lot more risk but a lot more reward as well. Is BRRRR the only strategy you are looking into? There are markets in the Midwest you can get a duplex for $70-80k with sec 8 tenants in place that will cash flow you $700/mo after all said and done. Worst case, if you are paying cash you can delay refinance and take out most of your initial investment after 1yr (due to new fannie/freddie regulations).
Post: brrrr, Renting it out
- Posts 191
- Votes 21
Quote from @Nicholas L.:
there is no 'down payment' on a cash out refi.
You still have to refinance it into a conventional loan of 30 years, which is a mortgage, but when u do that you dont have to put 20 percent down like normal
Post: brrrr, Renting it out
- Posts 191
- Votes 21
Quote from @Nicholas L.:
there is no down payment - i paid all cash
so truly all in for 100
and with the refi i get all 100 back, plus the 35k in equity
You paid cash but once you do a cash refi out, you basically doing a new mortgage of 100k, so you have to do a conventional loan on that 100k and have to put 20 percent down, correct?
Post: brrrr, Renting it out
- Posts 191
- Votes 21
Quote from @Nicholas L.:
Dang 45k must need lots of work so 40k or more for rehab
correct
all in for 90k to 100k.
correct - almost exactly 100K
So Arv need to be at least 160k to break even and cash refi out
no - just 135. if i get 135 ARV, i'll be happy. if i get 160, i'll be ecstatic. and it's not breaking even - it's getting 100% of your cash back plus the equity you created.
why is it taking almost 4 month to rehab??
that's how long rehabs take. closed in december, started rehab in january, finishing soon. ahead of schedule.
I assuming you paid cash from you bank account and not a loan from some where
correct - cash for purchase, 0% credit card for rehab.
Post: brrrr, Renting it out
- Posts 191
- Votes 21
Quote from @Nicholas L.:
i bought an off market SF in December for 45k - fixing it up now
did some of the demo and clean out myself
hoping for ARV between 135-160
will refi at 75% to pull out 100-120
will move on to next one
Dang 45k must need lots of work so 40k or more for rehab, all in for 90k to 100k. So Arv need to be at least 160k to break even and cash refi out, and why is it taking almost 4 month to rehab?? I assuming you paid cash from you bank account and not a loan from some where
Post: brrrr, Renting it out
- Posts 191
- Votes 21
Still waiting on those numbers
Post: brrrr, Renting it out
- Posts 191
- Votes 21
Quote from @Dan H.:
Quote from @Chris Kendrick:
Quote from @Dan H.:
Quote from @Chris Kendrick:
Quote from @Dan H.:
Quote from @Chris Kendrick:
Quote from @Corby Goade:
This whole perception of properties having to rent out for 1% of the purchase price is ridiculous. Newbies want to know why they are so nervous to pull the trigger have to look no further than this type of kool aid drinking to instill a deep fear in making life changing moves.
Equity and appreciation matter. It's huge and people barely talk about it here. You see lots of posts from flippers about ARV, but you never see posts from newbies talking about value. You see posts asking if "this is a good deal" with numbers like this:
-Purchase price $250, rehab $25K, market rents of $1800- is this a good deal?
Well, if the house is worth $350k, and you are in a market where rents reliably increase by 5-8% per year- then yeah, it's a GREAT deal, but if you are only looking for a 1% deal, you miss the part where you are walking in to $125k in equity that you can leverage.
Buy and hold is a marathon- if you only pay attention to how much cash flow you make on the first month, you've already lost the plot.
Make reasonable moves, give yourself some grace and get out there~
Best of luck!
however, I have seen multiple posts that indicate options to increase revenue (STR, MTR, rent by room). You seem to ignore them as a possibility.
there are 2 components to cash flow: revenue and expenses.
there are options that reduce the cost. some to consider: alternate financing, off market acquisition, value adds (typically the more sophisticated the value add, the less competition for the property).
Brrrr is not the only RE strategy. There are too many for me to list.
the best RE strategy is market specific and can shift. Brrrr will not be ideal in every market at every point in time. I will go one further, residential RE may not be the best investment at every point in time.
maybe RE is not the right path for you. Or maybe now is not the right time. If you believe RE is the right path for you, continue to educate.
however, do not expect that a no effort, turn key, high cash flow, high appreciation RE is going to fall into your lap. In this point in the market, those finds typically take work/effort.
If you are unwilling to put in the effort, there are many investment choices that are more passive than residential RE. CDs over 5%. S&P lifetime at near 10%. Syndicators that many have been ~20% in recent times (much harder on many of these with these rate hikes). REITs. The list is virtually infinite.
Good luck
brrrr and flipping is really only strategies i see, well doing rental is an option unless the price of house gets to high then you cant rent them out, and please dont say house hacking or owner financing , cause it will not work for most people who has family and owns a house already. and selling finance is hard to find and most realtors here laugh when i mention that cause most sellers are not going to do that anyway, so what other strategies are there
I have purchased with seller financing, so you are unable to convince me it is not an option. I have house hacked so you are not going to convince me it is not an option. I have purchased off market quite a few times including my last 4 purchases, so you are not going to convince me it is not an option.
I am not sure that you have had a logic class, but a way to disprove something is by counter example.
I do not know why you are fixated on BRRRR and flips. They can work, but they are not the only options. RE has many options. I have done many BRRRRs, but I have invested in RE in other ways also. I will say BRRRRs are the least passive way that I have invested in RE. They are work and especially in this market take skills. Some other RE options include notes, syndication, NNN, REIT, a wide variety of commercial non residential (Mobile home parks (residential, but not traditional residential), industrial, storage units, retail space, office space), development, land speculation, mineral rights (My first home run was in mineral rights), etc. Too many options to list. There are numerous other options for RE investing.
There are also options that are unrelated to RE. Virtually all are more passive than BRRRR and flips. Note S&P 500 lifetime return is near 10%, just to name one index fund. Current CDs are ~5%. money market. Bonds. individual stocks. commodities. Too many to list.
However, if you are already defeated then why bother educating? If there is no way, it would be a waste of time to educate.
Some people expect the path to wealth to be easy and risk free. this typically is not the case.
Good luck
I am talking about houses, not office spaces or other stuff, um anyway , i didnt say seller finace can't be done, just harder to find, and i said house hacking dont work if you have family and already own a house, so that doesnt count,
>i said house hacking dont work if you have family and already own a houseoff market deals is a brrrr/flip cause they are distressed properties that need work, so what's next
It can be done with family. It can be done in your own home. You can rent extra BR or the garage. You can sell your home and purchase a different home that is better suited for house hacking. There seems to be no will.
My last 3 off market properties were not distressed. Even the 4th to last was a duplex that only one unit of the two was distressed. There are a lot of off market purchases. There are many reasons why a property may be sold off market other than being distressed.
If everything is too hard, find something that is more doable. There are literally a ton of opportunities. I have an abundance attitude and you have a defeated attitude. Which do you think is more likely to find success? Maybe you need to address your attitude before looking for opportunities???
I will attempt to refrain from responding further. It is clear to me that my advice is not working for you. Maybe I am not presenting it in a way that works for you.
Good luck
Basically what it boils down to is that you have to get a property below market value, i would like to see someone with some real numbers on there investments, within the last year ,
Post: brrrr, Renting it out
- Posts 191
- Votes 21
Quote from @Dan H.:
Quote from @Chris Kendrick:
Quote from @Dan H.:
Quote from @Chris Kendrick:
Quote from @Corby Goade:
This whole perception of properties having to rent out for 1% of the purchase price is ridiculous. Newbies want to know why they are so nervous to pull the trigger have to look no further than this type of kool aid drinking to instill a deep fear in making life changing moves.
Equity and appreciation matter. It's huge and people barely talk about it here. You see lots of posts from flippers about ARV, but you never see posts from newbies talking about value. You see posts asking if "this is a good deal" with numbers like this:
-Purchase price $250, rehab $25K, market rents of $1800- is this a good deal?
Well, if the house is worth $350k, and you are in a market where rents reliably increase by 5-8% per year- then yeah, it's a GREAT deal, but if you are only looking for a 1% deal, you miss the part where you are walking in to $125k in equity that you can leverage.
Buy and hold is a marathon- if you only pay attention to how much cash flow you make on the first month, you've already lost the plot.
Make reasonable moves, give yourself some grace and get out there~
Best of luck!
however, I have seen multiple posts that indicate options to increase revenue (STR, MTR, rent by room). You seem to ignore them as a possibility.
there are 2 components to cash flow: revenue and expenses.
there are options that reduce the cost. some to consider: alternate financing, off market acquisition, value adds (typically the more sophisticated the value add, the less competition for the property).
Brrrr is not the only RE strategy. There are too many for me to list.
the best RE strategy is market specific and can shift. Brrrr will not be ideal in every market at every point in time. I will go one further, residential RE may not be the best investment at every point in time.
maybe RE is not the right path for you. Or maybe now is not the right time. If you believe RE is the right path for you, continue to educate.
however, do not expect that a no effort, turn key, high cash flow, high appreciation RE is going to fall into your lap. In this point in the market, those finds typically take work/effort.
If you are unwilling to put in the effort, there are many investment choices that are more passive than residential RE. CDs over 5%. S&P lifetime at near 10%. Syndicators that many have been ~20% in recent times (much harder on many of these with these rate hikes). REITs. The list is virtually infinite.
Good luck
brrrr and flipping is really only strategies i see, well doing rental is an option unless the price of house gets to high then you cant rent them out, and please dont say house hacking or owner financing , cause it will not work for most people who has family and owns a house already. and selling finance is hard to find and most realtors here laugh when i mention that cause most sellers are not going to do that anyway, so what other strategies are there
I have purchased with seller financing, so you are unable to convince me it is not an option. I have house hacked so you are not going to convince me it is not an option. I have purchased off market quite a few times including my last 4 purchases, so you are not going to convince me it is not an option.
I am not sure that you have had a logic class, but a way to disprove something is by counter example.
I do not know why you are fixated on BRRRR and flips. They can work, but they are not the only options. RE has many options. I have done many BRRRRs, but I have invested in RE in other ways also. I will say BRRRRs are the least passive way that I have invested in RE. They are work and especially in this market take skills. Some other RE options include notes, syndication, NNN, REIT, a wide variety of commercial non residential (Mobile home parks (residential, but not traditional residential), industrial, storage units, retail space, office space), development, land speculation, mineral rights (My first home run was in mineral rights), etc. Too many options to list. There are numerous other options for RE investing.
There are also options that are unrelated to RE. Virtually all are more passive than BRRRR and flips. Note S&P 500 lifetime return is near 10%, just to name one index fund. Current CDs are ~5%. money market. Bonds. individual stocks. commodities. Too many to list.
However, if you are already defeated then why bother educating? If there is no way, it would be a waste of time to educate.
Some people expect the path to wealth to be easy and risk free. this typically is not the case.
Good luck
I am talking about houses, not office spaces or other stuff, um anyway , i didnt say seller finace can't be done, just harder to find, and i said house hacking dont work if you have family and already own a house, so that doesnt count, off market deals is a brrrr/flip cause they are distressed properties that need work, so what's next
Post: brrrr, Renting it out
- Posts 191
- Votes 21
Quote from @Dan H.:
Quote from @Chris Kendrick:
Quote from @Corby Goade:
This whole perception of properties having to rent out for 1% of the purchase price is ridiculous. Newbies want to know why they are so nervous to pull the trigger have to look no further than this type of kool aid drinking to instill a deep fear in making life changing moves.
Equity and appreciation matter. It's huge and people barely talk about it here. You see lots of posts from flippers about ARV, but you never see posts from newbies talking about value. You see posts asking if "this is a good deal" with numbers like this:
-Purchase price $250, rehab $25K, market rents of $1800- is this a good deal?
Well, if the house is worth $350k, and you are in a market where rents reliably increase by 5-8% per year- then yeah, it's a GREAT deal, but if you are only looking for a 1% deal, you miss the part where you are walking in to $125k in equity that you can leverage.
Buy and hold is a marathon- if you only pay attention to how much cash flow you make on the first month, you've already lost the plot.
Make reasonable moves, give yourself some grace and get out there~
Best of luck!
however, I have seen multiple posts that indicate options to increase revenue (STR, MTR, rent by room). You seem to ignore them as a possibility.
there are 2 components to cash flow: revenue and expenses.
there are options that reduce the cost. some to consider: alternate financing, off market acquisition, value adds (typically the more sophisticated the value add, the less competition for the property).
Brrrr is not the only RE strategy. There are too many for me to list.
the best RE strategy is market specific and can shift. Brrrr will not be ideal in every market at every point in time. I will go one further, residential RE may not be the best investment at every point in time.
maybe RE is not the right path for you. Or maybe now is not the right time. If you believe RE is the right path for you, continue to educate.
however, do not expect that a no effort, turn key, high cash flow, high appreciation RE is going to fall into your lap. In this point in the market, those finds typically take work/effort.
If you are unwilling to put in the effort, there are many investment choices that are more passive than residential RE. CDs over 5%. S&P lifetime at near 10%. Syndicators that many have been ~20% in recent times (much harder on many of these with these rate hikes). REITs. The list is virtually infinite.
Good luck
brrrr and flipping is really only strategies i see, well doing rental is an option unless the price of house gets to high then you cant rent them out, and please dont say house hacking or owner financing , cause it will not work for most people who has family and owns a house already. and selling finance is hard to find and most realtors here laugh when i mention that cause most sellers are not going to do that anyway, so what other strategies are there
Post: brrrr, Renting it out
- Posts 191
- Votes 21