All Forum Posts by: Colin Spivey

I am looking at buying my first rental property either this spring or this summer. I am looking at purchasing a run down home and BRRRR'ing it into a B class property. I talked to my lawyer and he said with a lower income type property that it is better to renew the lease in 3 or 6 month intervals so that I have to option to terminate the lease rather than find grounds to go through and eviction if the tenant is not following the lease or paying rent. He said he recommends his clients with A class properties to get their tenants into a year or two lease because these tenants are statistically more trustworthy, but a B or C class property statistically house tenants who have more problems. I see his point but if I do my due diligence in the application and screening process should I still only keep a lease for 3 or 6 months. Is it that big of a deal to renew a lease every 3 or 6 months (I will be self managing the property)? I would just like to hear other's opinions on this subject. Thanks

@Panetrick Gooden

Absolutely any of the books published by bigger pockets are exceptional and lay a great foundation for your real estate investing. If you are wanting more of a mindset type literature, look into Robert Kiyosaki’s “Rich Dad, Poor Dad” and his “Cashflow Quadrant.”

@Morris Mugo

I did not run an analysis on the property, but what I can tell you is that if you are not confident enough to decide for yourself that this is a good deal then you should do a little more research and analyzing before purchasing a property. Don’t get stuck within the “analysis paralysis,” but also don’t just dive in and throw money at something that you aren’t sure of. Make sure to do your due diligence in the analysis, and it should make things much easier once you get everything going.

@John Taylor

Your plan does not sound far fetched at all. Although I don’t know the area, I do know that you should also account for Capital Expenditures and Maintenance costs on your property when trying to figure up your cash flow. The BP calculators are a great tool for figuring out your game plan on certain properties.

@Jeremy Rhodes thank you! Started falling in love with the different aspects of real estate about a year ago. I planned to house hack once I turned 20 and had 2 years of documented income, but after I started learning more about the BRRRR strategy, I thought why wait!

@Kevin Romines Thank you for your advice. This lender is a family friend that owns a mortgage company. He mentioned this as an option but never stated that it was my only option. I am speaking with him again tomorrow. I am still going to shop around for loans before I refinanced, I just wanted to get an idea of what I would have available.

@Aaron H. Thank you for your feedback!

I am 18 years old and am looking at buying my first investment property this summer. I am looking at doing the BRRRR method. I have the private money lender and the general contractor handled, but due to me being 18, I

had concerns with the refinance portion. My father has over an 800 credit score, and he said he will sign on as a 1% equity holder with me during the refinance. I went and spoke with a lender yesterday, and I was told that I would not have a problem refinancing as long as my father signed on with me. He said that the credit portion of it was covered, but I could have a problem with the income side of approval. He said to prevent this, I would have the option of them looking only at my rent appraisal on the property, and if it covered my mortgage and expenses, basically making sure it cash flows, (which it would because it all comes in the due diligence of the analysis) that they could bypass the income aspect of approval as well. In return for this, I would be on more of a 7 or 8% interest rate. What are your thoughts on this, do I have other options, etc.? Thank you!