All Forum Posts by: Craig Hansen

I am looking at investing in my first BRRRR. My question is on monthly cash flow. Here are the numbers:

Purchase - $70K

Rehab  - $50K

ARV - $180K

Cash out refinance - will get 100% of my investment back or pocket up to $15K

Problem - I am estimating that my monthly cash flow will be about $100 a month. My other properties cash flow +$500 a month. I am worried about the low monthly cash flow, but understand this will grow over the years. 

Is this a good deal? What are others doing about cash flow on BRRRRs

I agree with @Matt J.. Network, network, network. I have taken a conservative approach to things in the past 3 years looking for the "good" deal. I wish I would have picked up any I passed on in the last 2 years, but I didn't have my confidence to pull the trigger. That was a learning experience for me and helped me be more prepared today. Know your numbers and don't jump into a deal just to get one. The first one is always an education that will pay dividends in the future. 

@Matt J. Thanks for the information. 

@Matt J. What areas in the West are "up and coming"?

Let me know when you have the STR going - I love staying at these but there isn't enough in Duluth when I visit.

I am researching Duluth and I hear West Duluth is not desirable. I see the most upside looking at the numbers, but don't understand why West Duluth is not a desirable as the east side. I would be interested in hearing some opinions. 

nice job. I have family in Grayslake and it is a beautiful town. 

Lake County IL has some super high taxes and I haven't seen property values increase much since 2010ish. I have lived here my entire life and looking outside of IL to invest. 

I would love to "get together"

I wish there were more STR in Duluth. Hotels are expensive and often sell out. I visit there often and I would much rather stay in a STR than a hotel.