All Forum Posts by: Deneuve Brutus

I travel to Richmond at least once a month for the past 3 years. It is seeing tremendous growth and there are certainly opportunity for investors. Personally, I've started looking at Petersburg.

@Nathan Dobbins May be able to drop more gems.

@Arsenio Hart Welcome to BP! It is a tough market out there. As @Eric Fung said keep networking, that's the key. Don't get disappointed nor try to rush/force a deal. Stay true to your criteria and you will do great!

 Your welcome!

Hi @Phillip Wong , congratulations on graduating with your nursing degree!🎉 

The most important variable is up to you and it is based on your buying criteria, for example of a criteria:

"I only buy Triplexes in Tampa, Florida for less than $550,000 that will need no greater than $45,000 rehab in the zip code 33602 that cash-flows $250/month/door" in my the cash-flow is most important to me.

There are a few variables you should be familiar with, mostly the ones in the BP calculator. If you haven't signed up for a webinar with Brandon Turner yet on

• How to Evaluate and Offer on Rental Properties"
• How to Buy Your First, Second, or Third Rental Property!

He covers how to do the calculations if you don't have access to BP calculator. 

The 50% rule of thumb states that for a real estate investment, the non-mortgage expenses will usually average out to about 50% of the rent (not always).

Variables:

Capital Expenditures: Depends on the home

Home Insurance: Depends on the home and market, you can get a quote from an insurance company

Title Insurance: Depends on the home and market, you can get a quote from an insurance company

Property Taxes: Depends on the city, they'll have a certain percentage they charge

Property Manager (PM) Cost: For me my rule of thumb is 10%, to be conservative. You can call PM in your area to ask.

Utilities: You can call you utility company in the town to ask what the average is for the home you are looking to buy. You can also search the web for costs of living and enter the area for an idea of what you can expect to pay.

Vacancy: This will depend on your area, you can call a PM to ask.

Hopefully that helped, let me know if you have any more questions! 

Good luck!

Hi @Derek Gowen Welcome to BP and congratulations on your first post! 🎉

I've read a few books on the subject I'll list them below. The best ones I've found has really open the doors to "creative financing" they are the keywords you want to search the web for.

• Creative Seller Financing: How to Use Seller Financing to Buy or Sell Any Real Estate (Creative Real Estate Book 1)
• Creative Down Payments: How to Use Almost Anything as a Down Payment to Buy Real Estate (Creative Real Estate Series Book 2)
• Advanced Creative Real Estate Financing: Breakthrough Success Strategies (Creative Real Estate Series Book 3)
• The Book on Investing In Real Estate with No (and Low) Money Down: Creative Strategies for Investing in Real Estate Using Other People's Money (BiggerPockets Rental Kit 1)

Let me know if you have anymore questions, Good Luck!

Hi @Timothy Mitchell congratulation on your first post, first potential investment property and welcome to BP! 🎉

I don't think anyone can make up your mind for you. However, here are a few things to think about:

 You should absolutely speak with your real estate agent to ensure you have the option to exit the contract.

What is your buying criteria? For example: "Two Story Single Family Colonial Homes with at least 2100 sq. ft. within a 3 mile radius of the interstate without an HOA with less than $15,000 renovation that $450 cash-flows/month which I can purchase for less than $350,000 in the zip code 22407".

Is $420/mth below or over your baseline/worth it/ideal cash-flow per door for your criteria?

Is a 10% cash on cash return ideal for your buying criteria?

What is your level of comfortability with the purchasing decision?

What is the maximum you are willing to put into fixing up a place?

Were you looking to make repairs soon after purchase?

Communicate with the owner (through your agent) about the unexpected CapEx to attempt additional deductions.
The CapEx sounds like a pain point for the current owner, as an investor you can remove that for them. Helping someone with a distressed property is what being an investor is all about in my opinion.

Hopefully that helped. Let me know if you have any more questions.

Good luck!

Hi @Sibo Ju Welcome to BP and congratulations on your first post and the decision to BRRR! 🎉

It is a seller's market at the moment. The first place to start is to figure out what you are able to afford in order to ensure you don't overbid should you find the perfect home and there is a bidding war. Contact a lender either bank or credit union or mortgage broker and get pre-approved if you can. It is better than pre-qualify and you can ask for a letter of pre-approval to give with your offer to improve your odds at getting accepted. Ensure you contact a Real Estate Agent who is investor friendly, they will know the verbiage and what you are planning to do with the home. Go to virtual meetups/connect with other investors in the area, you may be able to find an off-market deal. 

BRRRR

The great thing about BRRRR is that it can take as long as you want. I've been BRRR'ing a home since 2018. David Greene calls that a Long Term BRRR. I'm pulling a Brandon Turner and coining it the "LTBRRR". I have tenants living in there, at the moment. I lived there for 2 years slowly making repairs and upgrading the basement, as I had a baby and got married during that time period. Do what you and your spouse is comfortable with as far as time period and costs. One thing I learned is that you don't want to rush or force a deal. If you and your wife are willing see out of state or other markets, it is something to think about.

AirBNB

Short-term rentals are a hot-topic, BP has an Air-Bnb calculator it is powered by AirDNA. It also has a BRRR calculator. I'd suggest paying for the PRO membership to use them. They are phenomenal. There are other websites as well and ample YouTube videos that will help you calculate your expenses if you do not want to use the BP calculator. In order to find expenses for the homes search the web for average cost of living in the Zip Code or if you know someone who lives in that neighborhood you can ask, depending on the home it may vary. You can get an insurance quotes from a company during your due diligence period. Call the utility company and ask them for the highest/average usage in the area/block/zip code. They may give out that information as well.

Whoop! Congratulations @Michael Widick 

You took the dive and it is worth it. You should create a blog on your lessons learned if you have the time.

Hi @Eugene Lubman and welcome to BiggerPockets! 

You have a solid plan. Based on what I read it all depends on the level of risk you and your family can afford. If the deal turned out to be the worst deal you can make would you be able to pay for EVERYTHING out of your own pockets? What can you pay for? How are your cash reserves? Do not move on a deal unless it cash-flow before you buy!  This is the one thing I've learned from listening to BP Podcast. It may be different for you. You also don't want to force a deal.

From the title of the post, my personal experience, and all the books I've read, especially David Greenes' Long-Distance Real Estate Investing. I mixed it with his BRRRR book then bam you have a winning strategy! If your current market is not matching your needs, find another one. That book details David's process for finding people to work with, how he finds deals and how he outlines his processes.

You like the place you're renting, stay there. I put my SFR for rent because the cash-flow was there and frankly it was cheaper to rent, now the market is crazy and everyone wants to buy it.

It sounds like you may have located a market. Would you be able to find other markets with a better yield for your money? The 50% rule is great however I advise taking an extra 15 minutes to run the numbers on the BP Calculator or a similar formula to see if it really checks out. You may have to call the local utility company to get averages in your area, however when I find a property I'm interested in knowing those puts my mind at ease.

Based on what I've read, I would stay put and invest remotely. Once my cash-flow is good enough move to another location that would support my family's needs, and possibly give me a homestead benefit. Many people frown upon renting from yourself, however, it all depends on your opinion and what the law allows.

Let me know if you have any other questions! Good luck!

I haven't read many RE Agent books yet, however PrepAgent on YT. Absolutely, helped me pass my exams.  The Millionaire Real Estate Agent Author: Gary Keller, Jay Papasan, Dave Jenks was instrumental in setting my mindset. David Greene does a Real Estate Agent webinar called "Calling all Agents | How to make 6-Figures in your Business", you should jump on one! Or access it through the archives. He talks about what worked for him and you can ask him questions. It's great! This is where I learned about SOLD. I pre-ordered it with the utmost haste, after that webinar.

The BP podcasts helped me learn a lot about investing and unknowingly about what investors are looking for from an agent. Also, the Real Estate Rockstars Podcast is great for agents new and experienced.