All Forum Posts by: Christopher Reiser

@Joe Homs thanks for the advice, that’s the way I’m leaning at this point!

Thanks, Michael that’s kind of what I was thinking as well. This is our first deal and I would like to get to the point where I can purchase and rehab with all cash then get a mortgage and never leave any initial capital in the property.

Yeah, I guess my question is: is it better to leave more than 20% equity in a property in order for it to cashflow better, say $200/month after cap ex, maintenance, and management using the BRRRR method? Or flip that property to find a property that would have an ARV of $90k that rents for $900/month. So that I'm maximizing my return without leaving untapped equity?

If I'm understanding you correctly, you're saying it would not brrrrr out? At 80% LTV I agree, that's why I was saying I would need to leave 30-40% equity, so it would cash flow. Would still get most of my initial investment out, but couldn't tap into the additional equity without sacrificing the cash flow.

I am under contract on a 3 bed 1 bath single story property for $67,000. Based on nearby comps I believe the property could sell for around $120,000, after a $15,000 rehab, basically need mostly cosmetic updates: drywall repair, new flooring throughout, paint and basic update on bathroom and kitchen. I'll do most the work myself. I should be able to get about $900/month rent. I'll be doing 20% down on a 20 year amortized at 4%. Taxes for the year are $1000 and insurance will be about 700 for the year. I have $40,000 in cash which will cover down payment and rehab. If I did my math correctly I should be able to BRRRR it and pull all my investment out, but in order for it to cash flow I would have to leave 40% equity in the property, or I could flip it and double my capital.

I am under contract on a property for $67,000. Based on nearby comps I believe the property could sell for around $120,000, after a $15,000 rehab, basically need mostly cosmetic updates: drywall repair, new flooring throughout, paint and basic update on bathroom and kitchen. I'll do most the work myself. I should be able to get about $900/month rent. I'll be doing 20% down on a 20 year amortized at 4%. Taxes for the year are $1000 and insurance will be about 700 for the year. I have $40,000 in cash which will cover down payment and rehab. If I did my math correctly I should be able to BRRRR it and pull all my investment out, but in order for it to cash flow I would have to leave 40% equity in the property, or I could flip it and double my capital.