All Forum Posts by: David Ripplinger

@Salvatore Lentini Awesome, thanks.

I would recommend reading the BRRRR book by David Greene.

Well, we bunked together for most years from when I was 3 til I was 18. We fought a ton, but now we're best buds.

In all seriousness though, my brother and I are great, complementary partners, and I have no fear of it souring our relationship. A family partner can be pretty awesome, but many people have hurt family relationships because of business, so I'd only recommend it to others if both family members have a high level of integrity, reliability, and drive, and if you have a rock solid relationship.

The rental market stinks in Utah. You can't find any properties that come even close to rent high enough to cover maintenance, property management fees, and the monthly mortgage payment. Everyone holding rentals in Utah are either losing a ton of money or they bought super cheap way back when or they own the property free and clear (and can't capitalize on that property's equity to utilize elsewhere).

Hi all! As I'm analyzing BRRRR deals, I'm trying to use the 1% (or 2%) rule of thumb as part of my initial quick analysis before diving deeper into it. But for a BRRRR, should that percentage be calculated based on the ARV of the property, my all-in cost, or should it be based on how much I pull out of it in the cash out refinance?

With the several videos and forum posts I've seen, my best guess is that most people base it on the ARV. But personally, I'm leaning toward how much the cash out refinance is to do an initial determination of whether it will cash flow.

@Lucas Schneider I'd be happy to chat more about it! Feel free to send me a private message if you want.

For rentals, the Utah market stinks. For flipping, I don't know. I don't plan to do hardly any flipping, and I live in Utah, so I'm starting to invest in Indianapolis.

We know that a cash out refinance is preferable to a HELOC to pull capital back out of a BRRRR. But for conventional loans, the LTV is 75% and for portfolio loans it's typically 75% or 80%, unless you get lucky. Uncertainties in rehab cost and appraisal (or shortage of killer deals) can sometimes land you too high for all in costs or too low for ARV, such that you can't pull out all your capital.

I wonder if, after finding the right lender to do it, I could have as a backup plan to raise my total LTV to 90% or higher by taking out a smaller HELOC on top of the cash out refi. Since it's not a huge HELOC, and as long as the property cash flows enough, rental income could pay for both the mortgage and the HELOC, and the HELOC would get paid off in a relatively short amount of time.

Thoughts?

@Ashley Cao B and C

@Michael Coombe We drove through a lot of them, so it was hard to keep track as a newcomer, but ones that stuck out in my mind were Speedway, South Broad Ripple (SoBro), Irvington, and a few spots close to the new red line.