All Forum Posts by: Chris Webb

Hi @Rhonda Davis, this is why I only look at cash on cash return. Accounting shows me that the cash flow statement is really the lifeblood of any investment. If cash flow stops, eventually the whole investment return stops. Now, my investment strategy is much different and I want to express this up front. I have not done a BRRRR and I do not plan on doing one anytime soon. However, it does depend on your time horizon and I would ask you to consider the supply chain issues that most BRRRR investors are suffering through right now. Do you account for this in your decision? It is a tough call in today's market. But, rates are rising and is it worth it to get 30 year money today vs 3-6 months from now. Best of luck and if you have any questions please let me know. I would be happy to run the numbers through my yield calculator for you if you want a second opinion.

Hi @Bob E., you mention margin debt. I am curious if you think that investors using BRRR are considered marginal investors. They typically uses short term debt to finance deals, right? With rising construction costs are they going to be left holding the bag in the near term?

What are your thoughts?

Thanks in advance. 

"What puzzels me is that inflation with it's massive impact on REI is not a big topic here on BP." I would say that this is probably because RE is an asset - which typically improve in inflationary times.

Hi @Joshua Merchant, I am in Tallahassee and Leon County. I know two agents out there who I work with there and have an excellent property manager. 

Hi @Joshua Merchant, I am looking for real estate meet ups too. I am in Lynchburg and I invest in FL and TX. If you find a RE group let me know.

Chris 

Second post here - I would suggest people who are using the BRRR method review the Producers Price Index. It is a leading indicator meaning it is telling the general public which direction prices are likely to go.

Here is a chart on the lumber prices which is measured monthly. You can see how they went up and then came down. At some point there was an inflection point where they started to go back up and if an investor was reading this correctly they could have purchased lumber while there was a break in the fall. Now, the prices seem to be increasing.  

I do not use the BRRR method, I do have 2 econ degrees and thought this might help some people who are looking to expand their investment education. Hope this helps you in your future investing!

Hi @Steven Webster, I would search the BP forums for mobile homes and see what comes up. I have thought about investing in them as they return a bit higher in my market. What is the end goal? Is it cash flow? Is it paying down the debt? I ask these questions all the time before pulling the trigger and find my one goal, if the property meets the one criteria, I invest. 

I find that often times we can get bogged down in chasing multiple things - debt paydown, appreciation, etc. Focus on one thing and if it will change your life for the better does this investment meet this one thing. 

Hope this helps. 

Hi @Jack Day, I am curious because of your W2 position, what metrics are you going to use to measure success in a deal? 

Hi @Amanda Jewell, best of luck on your new venture! 

I'm curious... In 2021, did your deals adhere to the 1% rule?